AppLovin (NASDAQ:APP) Shares Up 3.5% - What's Next?

Key Points

• AppLovin shares rose by 3.5% during Monday's trading, reaching a high of $591.32 before closing at $590.11, despite a 46% decline in trading volume compared to the average.
• Analysts maintain a consensus rating of Moderate Buy for AppLovin, with target prices ranging from $425 to $750, highlighting strong confidence in the company's future.
• In a recent transaction, insiders, including the CTO and a director, sold a significant number of shares, indicating potential profit-taking, as disclosed in legal filings with the SEC.

Shares of AppLovin Corporation (NASDAQ:APP - Get Free Report) shot up 3.5% during trading on Monday . The company traded as high as $591.32 and last traded at $590.11. 4,045,177 shares were traded during trading, a decline of 46% from the average session volume of 7,458,009 shares. The stock had previously closed at $569.89.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on the stock. Weiss Ratings reissued a "buy (b-)" rating on shares of AppLovin in a research report on Wednesday, October 8th. Scotiabank reissued an "outperform" rating on shares of AppLovin in a research report on Thursday, August 28th. Wall Street Zen cut shares of AppLovin from a "buy" rating to a "hold" rating in a research report on Saturday, August 9th. JPMorgan Chase & Co. boosted their target price on shares of AppLovin from $400.00 to $425.00 and gave the company a "neutral" rating in a research report on Thursday, August 7th. Finally, Morgan Stanley boosted their target price on shares of AppLovin from $480.00 to $750.00 and gave the company an "overweight" rating in a research report on Monday, September 29th. One investment analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $597.38.

AppLovin Stock Performance

The company has a quick ratio of 2.74, a current ratio of 2.74 and a debt-to-equity ratio of 3.01. The firm has a market cap of $199.60 billion, a price-to-earnings ratio of 83.82, a P/E/G ratio of 3.09 and a beta of 2.53. The stock has a 50 day moving average of $537.64 and a 200 day moving average of $402.05.

AppLovin (NASDAQ:APP - Get Free Report) last issued its earnings results on Wednesday, August 6th. The company reported $2.26 EPS for the quarter, topping the consensus estimate of $2.05 by $0.21. The firm had revenue of $1.26 billion during the quarter, compared to the consensus estimate of $1.37 billion. AppLovin had a return on equity of 252.67% and a net margin of 45.72%.The business's quarterly revenue was up 77.1% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.89 earnings per share. As a group, analysts anticipate that AppLovin Corporation will post 6.87 EPS for the current fiscal year.

Insider Activity

In other AppLovin news, CTO Vasily Shikin sold 30,000 shares of the business's stock in a transaction dated Friday, August 22nd. The stock was sold at an average price of $437.57, for a total transaction of $13,127,100.00. Following the completion of the transaction, the chief technology officer owned 3,360,104 shares of the company's stock, valued at approximately $1,470,280,707.28. The trade was a 0.88% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Eduardo Vivas sold 125,000 shares of the business's stock in a transaction dated Tuesday, August 12th. The stock was sold at an average price of $466.00, for a total value of $58,250,000.00. Following the transaction, the director directly owned 7,283,292 shares of the company's stock, valued at approximately $3,394,014,072. The trade was a 1.69% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 1,156,788 shares of company stock valued at $514,863,333. Corporate insiders own 13.66% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Kingswood Wealth Advisors LLC increased its stake in shares of AppLovin by 5.1% in the first quarter. Kingswood Wealth Advisors LLC now owns 1,663 shares of the company's stock valued at $445,000 after buying an additional 80 shares during the period. Wealth Enhancement Advisory Services LLC boosted its holdings in AppLovin by 62.7% in the first quarter. Wealth Enhancement Advisory Services LLC now owns 172,378 shares of the company's stock valued at $45,675,000 after acquiring an additional 66,453 shares during the last quarter. Legal Advantage Investments Inc. bought a new stake in AppLovin in the second quarter valued at approximately $1,523,000. Park Avenue Securities LLC boosted its holdings in AppLovin by 30.6% in the second quarter. Park Avenue Securities LLC now owns 20,890 shares of the company's stock valued at $7,313,000 after acquiring an additional 4,890 shares during the last quarter. Finally, Yousif Capital Management LLC boosted its holdings in AppLovin by 3.5% in the first quarter. Yousif Capital Management LLC now owns 3,544 shares of the company's stock valued at $939,000 after acquiring an additional 119 shares during the last quarter. 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.

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