AppLovin (NASDAQ:APP) Now Covered by Analysts at Royal Bank Of Canada

Key Points

• AppLovin was upgraded to a Moderate Buy rating by Royal Bank of Canada, indicating increased investor confidence in the company's stock.
• The company reported a quarterly EPS of $2.26, surpassing the consensus estimate of $2.05, with a year-over-year revenue increase of 77.1%.
• Insider trading activity revealed that CEO Arash Adam Foroughi sold 90,000 shares in August, reflecting a decrease in his ownership position of the company.

Investment analysts at Royal Bank Of Canada started coverage on shares of AppLovin (NASDAQ:APP - Get Free Report) in a research report issued to clients and investors on Monday, Marketbeat reports. The firm set an "outperform" rating and a $700.00 price target on the stock. Royal Bank Of Canada's price objective indicates a potential upside of 18.64% from the stock's current price.

APP has been the topic of a number of other research reports. Jefferies Financial Group upped 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. Oppenheimer set a $740.00 target price on shares of AppLovin in a research report on Tuesday, October 7th. Weiss Ratings reissued a "buy (b-)" rating on shares of AppLovin in a research note on Wednesday, October 8th. Wells Fargo & Company lifted their target price on shares of AppLovin from $491.00 to $633.00 and gave the stock an "overweight" rating in a research note on Tuesday. Finally, Citigroup lifted their target price on shares of AppLovin from $600.00 to $850.00 and gave the stock a "buy" rating in a research note on Wednesday, October 1st. One analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $600.59.

AppLovin Trading Down 0.0%

APP opened at $590.03 on Monday. The company's 50 day moving average is $545.78 and its 200-day moving average is $405.56. The company has a market cap of $199.58 billion, a P/E ratio of 83.81, a PEG ratio of 3.20 and a beta of 2.53. AppLovin has a 1-year low of $139.40 and a 1-year high of $745.61. The company has a current ratio of 2.74, a quick ratio of 2.74 and a debt-to-equity ratio of 3.01.

AppLovin (NASDAQ:APP - Get Free Report) last issued its earnings results on Wednesday, August 6th. The company reported $2.26 earnings per share (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 business had revenue of $1.26 billion during the quarter, compared to analysts' expectations of $1.37 billion. During the same quarter in the prior year, the firm earned $0.89 EPS. The business's revenue for the quarter was up 77.1% compared to the same quarter last year. Equities research analysts predict that AppLovin will post 6.87 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other AppLovin news, CEO Arash Adam Foroughi sold 3,800 shares of the firm's stock in a transaction on Friday, August 22nd. The shares were sold at an average price of $418.09, for a total value of $1,588,742.00. Following the transaction, the chief executive officer directly owned 2,616,254 shares of the company's stock, valued at approximately $1,093,829,634.86. This trade represents a 0.15% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Dawson Alyssa Harvey sold 350 shares of the firm's stock in a transaction on Friday, September 5th. The shares were sold at an average price of $487.97, for a total transaction of $170,789.50. Following the completion of the transaction, the director directly owned 3,150 shares in the company, valued at $1,537,105.50. This trade represents a 10.00% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 1,156,788 shares of company stock worth $514,863,333 over the last three months. Insiders own 13.66% of the company's stock.

Hedge Funds Weigh In On AppLovin

Hedge funds have recently added to or reduced their stakes in the stock. Atala Financial Inc acquired a new position in AppLovin during the 1st quarter valued at about $26,000. Hilltop National Bank bought a new stake in AppLovin during the second quarter worth $26,000. LFA Lugano Financial Advisors SA bought a new stake in AppLovin during the second quarter worth $26,000. Alpine Bank Wealth Management bought a new stake in AppLovin during the first quarter worth $27,000. Finally, ORG Wealth Partners LLC bought a new stake in AppLovin during the first quarter worth $29,000. Institutional investors and hedge funds own 41.85% of the company's stock.

About AppLovin

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.