AppLovin (NASDAQ:APP) Issues Quarterly Earnings Results, Beats Expectations By $0.22 EPS

AppLovin (NASDAQ:APP - Get Free Report) issued its quarterly earnings data on Wednesday. The company reported $1.67 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.45 by $0.22, Zacks reports. AppLovin had a return on equity of 188.55% and a net margin of 33.54%. The firm had revenue of $1.48 billion during the quarter, compared to the consensus estimate of $1.38 billion. During the same period last year, the company earned $0.67 EPS. The company's quarterly revenue was up 40.3% on a year-over-year basis.

AppLovin Stock Performance

Shares of APP stock traded down $10.72 during mid-day trading on Friday, hitting $328.79. 7,749,047 shares of the stock were exchanged, compared to its average volume of 5,996,936. AppLovin has a 12-month low of $60.67 and a 12-month high of $525.15. The company has a debt-to-equity ratio of 3.70, a quick ratio of 2.41 and a current ratio of 2.41. The stock has a market capitalization of $111.77 billion, a price-to-earnings ratio of 72.42, a P/E/G ratio of 3.02 and a beta of 2.39. The stock's fifty day simple moving average is $275.55 and its two-hundred day simple moving average is $311.59.

Analysts Set New Price Targets

Several equities research analysts recently issued reports on APP shares. JPMorgan Chase & Co. boosted their price objective on AppLovin from $270.00 to $355.00 and gave the company a "neutral" rating in a report on Thursday. Morgan Stanley raised their price objective on shares of AppLovin from $350.00 to $420.00 and gave the company an "overweight" rating in a research note on Thursday. FBN Securities initiated coverage on shares of AppLovin in a report on Friday, March 28th. They issued an "outperform" rating and a $385.00 price objective for the company. Bank of America increased their target price on shares of AppLovin from $375.00 to $580.00 and gave the stock a "buy" rating in a report on Thursday, February 13th. Finally, Citigroup upped their price objective on AppLovin from $460.00 to $600.00 and gave the stock a "buy" rating in a research report on Wednesday, February 19th. One analyst has rated the stock with a sell rating, three have given a hold rating, seventeen have given a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $433.85.

Insider Activity

In other news, CTO Vasily Shikin sold 17,500 shares of the stock in a transaction dated Monday, March 10th. The shares were sold at an average price of $241.65, for a total transaction of $4,228,875.00. Following the transaction, the chief technology officer now directly owns 88,389 shares in the company, valued at $21,359,201.85. This represents a 16.53 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Herald Y. Chen sold 200,000 shares of the business's stock in a transaction on Friday, February 28th. The shares were sold at an average price of $324.65, for a total transaction of $64,930,000.00. Following the sale, the director now directly owns 621,209 shares of the company's stock, valued at $201,675,501.85. This represents a 24.35 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 306,900 shares of company stock valued at $106,401,841. 14.69% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On AppLovin

A hedge fund recently bought a new stake in AppLovin stock. Bison Wealth LLC acquired a new stake in shares of AppLovin Co. (NASDAQ:APP - Free Report) in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund acquired 737 shares of the company's stock, valued at approximately $239,000. Institutional investors and hedge funds own 41.85% of the company's stock.

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.