AppLovin (NASDAQ:APP) Receives Buy Rating from Citigroup

Key Points

• Citigroup reaffirmed its buy rating on AppLovin and set a $710 price target, implying about 15.7% upside from the current share price.
• AppLovin’s latest earnings topped expectations, with $3.56 EPS versus $3.44 expected and $1.84 billion in revenue versus $1.77 billion estimated; revenue jumped 58.9% year over year.
• The stock traded around $613.70 on Monday, while analyst sentiment remains broadly positive with an average Moderate Buy rating and a consensus price target of $664.35.

AppLovin (NASDAQ:APP - Get Free Report)'s stock had its "buy" rating reaffirmed by equities researchers at Citigroup in a report released on Monday,Benzinga reports. They presently have a $710.00 price objective on the stock. Citigroup's price target would suggest a potential upside of 15.69% from the stock's current price.

A number of other equities analysts have also commented on the stock. The Goldman Sachs Group decreased their target price on shares of AppLovin from $710.00 to $585.00 and set a "neutral" rating on the stock in a report on Thursday, February 12th. JPMorgan Chase & Co. raised their target price on shares of AppLovin from $500.00 to $515.00 and gave the company a "neutral" rating in a report on Thursday, May 7th. Oppenheimer decreased their target price on shares of AppLovin from $740.00 to $660.00 and set an "outperform" rating on the stock in a report on Thursday, March 5th. Piper Sandler raised their target price on shares of AppLovin from $650.00 to $665.00 and gave the company an "overweight" rating in a report on Thursday, May 7th. Finally, BTIG Research reissued a "buy" rating and issued a $640.00 target price on shares of AppLovin in a report on Thursday, May 7th. One analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $664.35.

AppLovin Stock Up 0.1%

APP traded up $0.61 during trading hours on Monday, hitting $613.70. 4,289,106 shares of the company's stock were exchanged, compared to its average volume of 5,556,145. AppLovin has a 1-year low of $320.00 and a 1-year high of $745.61. The stock's 50-day moving average is $456.58 and its two-hundred day moving average is $520.78. The stock has a market cap of $206.17 billion, a price-to-earnings ratio of 52.72, a PEG ratio of 1.00 and a beta of 2.45. The company has a quick ratio of 3.24, a current ratio of 3.24 and a debt-to-equity ratio of 1.49.

AppLovin (NASDAQ:APP - Get Free Report) last announced its earnings results on Wednesday, May 6th. The company reported $3.56 EPS for the quarter, topping the consensus estimate of $3.44 by $0.12. The business had revenue of $1.84 billion during the quarter, compared to analysts' expectations of $1.77 billion. AppLovin had a net margin of 64.29% and a return on equity of 219.37%. The firm's revenue was up 58.9% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.67 earnings per share. Sell-side analysts predict that AppLovin will post 15.86 earnings per share for the current fiscal year.

Insider Buying and Selling at AppLovin

In related news, Director Eduardo Vivas sold 163,910 shares of AppLovin stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $453.49, for a total transaction of $74,331,545.90. Following the sale, the director directly owned 6,969,382 shares in the company, valued at $3,160,545,043.18. This trade represents a 2.30% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CTO Vasily Shikin sold 2,889 shares of AppLovin stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $488.90, for a total transaction of $1,412,432.10. Following the sale, the chief technology officer owned 17,945 shares in the company, valued at approximately $8,773,310.50. This represents a 13.87% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 464,016 shares of company stock valued at $218,477,985 in the last quarter. 13.66% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On AppLovin

Hedge funds have recently added to or reduced their stakes in the business. Revolve Wealth Partners LLC acquired a new position in shares of AppLovin in the 4th quarter worth approximately $294,000. Bison Wealth LLC acquired a new position in shares of AppLovin in the 4th quarter worth approximately $239,000. Integrated Wealth Concepts LLC lifted its position in shares of AppLovin by 58.0% in the 1st quarter. Integrated Wealth Concepts LLC now owns 1,692 shares of the company's stock worth $448,000 after purchasing an additional 621 shares during the period. NewEdge Advisors LLC lifted its position in shares of AppLovin by 5.7% in the 2nd quarter. NewEdge Advisors LLC now owns 14,523 shares of the company's stock worth $5,084,000 after purchasing an additional 782 shares during the period. Finally, Treasurer of the State of North Carolina lifted its position in shares of AppLovin by 7.2% in the 2nd quarter. Treasurer of the State of North Carolina now owns 139,189 shares of the company's stock worth $48,727,000 after purchasing an additional 9,380 shares during the period. 41.85% of the stock is currently owned by institutional investors and hedge funds.

About AppLovin

AppLovin Corporation is a Palo Alto–based mobile technology company that provides software and services to help app developers grow and monetize their businesses. The company operates a data-driven advertising and marketing platform that connects app publishers and advertisers, delivering tools for user acquisition, monetization, analytics and creative optimization. AppLovin's technology is integrated into a broad set of mobile applications through software development kits (SDKs) and ad products designed to maximize revenue and engagement for developers.

Key components of AppLovin's offering include an ad mediation and exchange platform that enables publishers to manage and monetize inventory across multiple demand sources, and a user-acquisition platform that helps advertisers target and scale campaigns.

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