AppLovin (NASDAQ:APP) Price Target Raised to $725.00

Key Points

• Wedbush raised AppLovin's (NASDAQ: APP) price target from $620.00 to $725.00, indicating a potential 26.90% upside from the previous close, while maintaining an "outperform" rating.
• The company's quarterly earnings showed a 77.1% year-over-year revenue increase, reporting $2.26 EPS, surpassing estimates by $0.21.
• Insider trading activity included significant sales by CEO Arash Adam Foroughi and other executives, with insiders selling over $514 million worth of shares in the past ninety days.

AppLovin (NASDAQ:APP - Get Free Report) had its price objective hoisted by stock analysts at Wedbush from $620.00 to $725.00 in a research note issued to investors on Friday,Benzinga reports. The firm presently has an "outperform" rating on the stock. Wedbush's price objective points to a potential upside of 26.90% from the company's previous close.

Several other research analysts have also recently weighed in on the company. Jefferies Financial Group lifted their price target on AppLovin from $560.00 to $615.00 and gave the company a "buy" rating in a research report on Friday, September 5th. Scotiabank reiterated an "outperform" rating on shares of AppLovin in a research report on Thursday, August 28th. Zacks Research upgraded AppLovin to a "strong-buy" rating in a research report on Friday, August 8th. Needham & Company LLC reiterated a "hold" rating on shares of AppLovin in a research report on Tuesday, August 26th. Finally, Wall Street Zen cut AppLovin from a "buy" rating to a "hold" rating in a report on Saturday, August 9th. Two investment analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $487.86.

AppLovin Stock Performance

Shares of APP opened at $571.31 on Friday. The stock has a 50-day moving average of $419.67 and a two-hundred day moving average of $352.06. AppLovin has a one year low of $97.35 and a one year high of $576.44. The company has a debt-to-equity ratio of 3.01, a quick ratio of 2.74 and a current ratio of 2.74. The stock has a market cap of $193.25 billion, a P/E ratio of 81.15, a P/E/G ratio of 3.17 and a beta of 2.44.

AppLovin (NASDAQ:APP - Get Free Report) last issued its quarterly earnings results on Wednesday, August 6th. The company reported $2.26 EPS for the quarter, topping analysts' consensus estimates of $2.05 by $0.21. AppLovin had a return on equity of 252.67% and a net margin of 45.72%.The company had revenue of $1.26 billion during the quarter, compared to analysts' expectations of $1.37 billion. During the same quarter in the previous year, the firm posted $0.89 EPS. The firm's revenue was up 77.1% compared to the same quarter last year. As a group, research analysts predict that AppLovin will post 6.87 EPS for the current year.

Insider Buying and Selling

In related news, insider Victoria Valenzuela sold 35,000 shares of the stock in a transaction that occurred on Thursday, September 4th. The stock was sold at an average price of $502.23, for a total value of $17,578,050.00. Following the completion of the transaction, the insider directly owned 269,955 shares in the company, valued at approximately $135,579,499.65. This represents a 11.48% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Arash Adam Foroughi sold 26,200 shares of the company's stock in a transaction on Friday, August 22nd. The stock was sold at an average price of $440.23, for a total value of $11,534,026.00. Following the transaction, the chief executive officer owned 2,590,054 shares in the company, valued at $1,140,219,472.42. This trade represents a 1.00% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 1,156,788 shares of company stock valued at $514,863,333 over the last ninety days. 13.66% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in APP. Atala Financial Inc acquired a new position in AppLovin during the first quarter worth $26,000. Hilltop National Bank acquired a new stake in shares of AppLovin in the second quarter valued at $26,000. LFA Lugano Financial Advisors SA acquired a new stake in shares of AppLovin in the second quarter valued at $26,000. Alpine Bank Wealth Management acquired a new stake in shares of AppLovin in the first quarter valued at $27,000. Finally, ORG Wealth Partners LLC acquired a new stake in shares of AppLovin in the first quarter valued at $29,000. 41.85% of the stock is currently owned by institutional investors and hedge funds.

AppLovin Company Profile

AppLovin Corporation engages in building a software-based platform for advertisers to enhance the marketing and monetization of their content in the United States and internationally. It operates through two segments, Software Platform and Apps. The company's software solutions include AppDiscovery, a marketing software solution, which matches advertiser demand with publisher supply through auctions; MAX, an in-app bidding software that optimizes the value of a publisher's advertising inventory by running a real-time competitive auction; Adjust, a measurement and analytics marketing platform that provides marketers with the visibility, insights, and tools needed to grow their apps from early stage to maturity; and Wurl, a connected TV platform, which distributes streaming video for content companies and provides advertising and publishing solutions through its AdPool, ContentDiscovery, and Global FAST Pass products.

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