AppLovin (NASDAQ:APP) Shares Up 1.5% - What's Next?

Key Points

• AppLovin's shares increased by 1.5%, reaching a last trading price of $494.65, while trading volume saw a significant drop, declining by 64% from its average.
• Several analysts have given AppLovin a consensus rating of "Moderate Buy" with a price target averaging around $478.81, while some reports set targets as high as $620.00.
• In recent insider activity, CEO Arash Adam Foroughi sold 26,200 shares at an average price of $440.23, indicating a strategic adjustment as insiders have sold a total of over 1.2 million shares in the last ninety days.

AppLovin Corporation (NASDAQ:APP - Get Free Report)'s share price shot up 1.5% during mid-day trading on Thursday . The company traded as high as $511.00 and last traded at $494.65. 2,517,301 shares were traded during trading, a decline of 64% from the average session volume of 6,975,979 shares. The stock had previously closed at $487.35.

Analyst Ratings Changes

A number of research firms have issued reports on APP. Benchmark restated a "buy" rating and set a $525.00 price target on shares of AppLovin in a report on Thursday, May 8th. Wedbush reiterated an "outperform" rating and issued a $620.00 target price on shares of AppLovin in a report on Thursday, August 7th. JPMorgan Chase & Co. increased their target price on AppLovin from $400.00 to $425.00 and gave the stock a "neutral" rating in a report on Thursday, August 7th. The Goldman Sachs Group increased their target price on AppLovin from $335.00 to $435.00 and gave the stock a "neutral" rating in a report on Friday, May 9th. Finally, Zacks Research upgraded AppLovin to a "strong-buy" rating in a report on Friday, August 8th. Two investment analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $478.81.

AppLovin Trading Up 2.6%

The stock has a market capitalization of $169.11 billion, a PE ratio of 71.02, a price-to-earnings-growth ratio of 2.68 and a beta of 2.44. The firm has a 50-day moving average price of $395.88 and a 200-day moving average price of $348.91. 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 announced its earnings results on Wednesday, August 6th. The company reported $2.26 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.05 by $0.21. AppLovin had a return on equity of 252.67% and a net margin of 45.72%.The firm had revenue of $1.26 billion during the quarter, compared to analyst estimates of $1.37 billion. During the same period last year, the firm posted $0.89 EPS. The business's revenue was up 77.1% compared to the same quarter last year. As a group, equities analysts forecast that AppLovin Corporation will post 6.87 EPS for the current fiscal year.

Insider Activity

In related news, CEO Arash Adam Foroughi sold 26,200 shares of AppLovin stock in a transaction dated 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 completion of the sale, the chief executive officer owned 2,590,054 shares of the company's stock, valued at approximately $1,140,219,472.42. This trade represents a 1.00% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Victoria Valenzuela sold 15,000 shares of AppLovin stock in a transaction dated Monday, August 25th. The stock was sold at an average price of $450.00, for a total value of $6,750,000.00. Following the completion of the sale, the insider directly owned 304,955 shares of the company's stock, valued at approximately $137,229,750. This trade represents a 4.69% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 1,233,165 shares of company stock valued at $544,003,820 in the last ninety days. 13.66% of the stock is currently owned by insiders.

Institutional Investors Weigh In On AppLovin

Several large investors have recently added to or reduced their stakes in APP. Hilltop National Bank bought a new position in AppLovin in the 2nd quarter worth about $26,000. LFA Lugano Financial Advisors SA bought a new stake in AppLovin in the 2nd quarter worth approximately $26,000. Twin Peaks Wealth Advisors LLC bought a new stake in AppLovin in the 2nd quarter worth approximately $33,000. Atala Financial Inc bought a new stake in AppLovin in the 1st quarter worth approximately $26,000. Finally, Hoey Investments Inc. bought a new stake in AppLovin in the second quarter valued at approximately $35,000. Hedge funds and other institutional investors 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.

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