AppLovin (NASDAQ:APP) Trading 1.6% Higher - Should You Buy?

Key Points

• AppLovin's shares increased by 1.6%, trading between $574.00 and $566.99, while seeing a significant drop in trading volume of 71% compared to its average session.
• The company reported earnings of $2.26 per share for the last quarter, exceeding analysts' expectations of $2.05, with a revenue of $1.26 billion.
• AppLovin's stock ratings are mostly positive, with two analysts rating it a Strong Buy and an average target price of $482.86 amidst changes in broker ratings.

AppLovin Corporation (NASDAQ:APP - Get Free Report)'s stock price shot up 1.6% during mid-day trading on Wednesday . The company traded as high as $574.00 and last traded at $566.99. 2,060,966 shares traded hands during mid-day trading, a decline of 71% from the average session volume of 7,041,333 shares. The stock had previously closed at $558.17.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on APP. Wall Street Zen downgraded AppLovin from a "buy" rating to a "hold" rating in a research note on Saturday, August 9th. Piper Sandler lifted their price objective on AppLovin from $470.00 to $500.00 and gave the stock an "overweight" rating in a research note on Thursday, August 7th. Zacks Research raised AppLovin to a "strong-buy" rating in a research note on Friday, August 8th. Citigroup reaffirmed a "buy" rating on shares of AppLovin in a research note on Thursday, May 29th. Finally, Morgan Stanley lifted their price objective on AppLovin from $460.00 to $480.00 and gave the stock an "overweight" rating in a research note on Thursday, August 7th. Two 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 stock. Based on data from MarketBeat, AppLovin has a consensus rating of "Moderate Buy" and an average price target of $487.86.

AppLovin Stock Up 1.7%

The company has a 50-day simple moving average of $419.67 and a 200-day simple moving average of $352.06. The firm has a market cap of $196.50 billion, a PE ratio of 82.59, a price-to-earnings-growth ratio of 3.17 and a beta of 2.44. The company has a debt-to-equity ratio of 3.01, a current ratio of 2.74 and a quick ratio of 2.74.

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 business had revenue of $1.26 billion during the quarter, compared to analyst estimates of $1.37 billion. During the same quarter in the previous year, the business earned $0.89 earnings per share. The company's revenue for the quarter was up 77.1% compared to the same quarter last year. Analysts expect that AppLovin Corporation will post 6.87 earnings per share for the current fiscal year.

Insider Buying and Selling at AppLovin

In related news, CEO Arash Adam Foroughi sold 90,000 shares of the business's stock in a transaction that occurred on Thursday, August 21st. The stock was sold at an average price of $421.04, for a total value of $37,893,600.00. Following the completion of the sale, the chief executive officer owned 2,620,054 shares in the company, valued at approximately $1,103,147,536.16. The trade was a 3.32% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Herald Y. Chen sold 200,000 shares of the business's stock in a transaction that occurred on Thursday, August 14th. The shares were sold at an average price of $432.49, for a total value of $86,498,000.00. Following the completion of the sale, the director owned 181,929 shares of the company's stock, valued at $78,682,473.21. The trade was a 52.37% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 1,156,788 shares of company stock valued at $514,863,333. 13.66% of the stock is owned by company insiders.

Institutional Trading of AppLovin

A number of large investors have recently modified their holdings of APP. Vanguard Group Inc. raised its stake in AppLovin by 0.4% in the second quarter. Vanguard Group Inc. now owns 17,902,795 shares of the company's stock worth $6,267,410,000 after buying an additional 72,120 shares in the last quarter. Price T Rowe Associates Inc. MD raised its stake in AppLovin by 36.7% in the first quarter. Price T Rowe Associates Inc. MD now owns 6,588,483 shares of the company's stock worth $1,745,752,000 after buying an additional 1,769,400 shares in the last quarter. State Street Corp increased its position in shares of AppLovin by 2.4% during the second quarter. State Street Corp now owns 5,615,415 shares of the company's stock worth $1,965,844,000 after purchasing an additional 133,402 shares in the last quarter. Baillie Gifford & Co. increased its position in shares of AppLovin by 29.0% during the first quarter. Baillie Gifford & Co. now owns 5,270,355 shares of the company's stock worth $1,396,486,000 after purchasing an additional 1,185,859 shares in the last quarter. Finally, Invesco Ltd. increased its position in shares of AppLovin by 32.9% during the first quarter. Invesco Ltd. now owns 4,011,306 shares of the company's stock worth $1,062,876,000 after purchasing an additional 992,316 shares in the last quarter. 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.