AppLovin (NASDAQ:APP) Shares Up 4.7% on Analyst Upgrade

Key Points

• AppLovin's stock price jumped 4.7% after UBS Group revised its price target from $540.00 to $810.00, maintaining a buy rating.
• The company reported earnings per share of $2.26 for the quarter, exceeding estimates, with revenue reaching $1.26 billion but falling short of forecasts.
• Insider selling activity includes CEO Arash Adam Foroughi offloading 26,200 shares, suggesting a decrease in personal stake, though insiders still own 13.66% of the company.

AppLovin Corporation (NASDAQ:APP - Get Free Report)'s stock price shot up 4.7% on Friday after UBS Group raised their price target on the stock from $540.00 to $810.00. UBS Group currently has a buy rating on the stock. AppLovin traded as high as $671.18 and last traded at $669.86. 6,073,782 shares traded hands during mid-day trading, a decline of 18% from the average session volume of 7,448,890 shares. The stock had previously closed at $639.91.

APP has been the topic of a number of other research reports. Zacks Research raised AppLovin to a "strong-buy" rating in a research note on Friday, August 8th. BTIG Research increased their price target on shares of AppLovin from $547.00 to $664.00 and gave the stock a "buy" rating in a research note on Monday, September 15th. Wall Street Zen lowered shares of AppLovin from a "buy" rating to a "hold" rating in a research report on Saturday, August 9th. JPMorgan Chase & Co. increased their price objective on shares of AppLovin from $400.00 to $425.00 and gave the stock a "neutral" rating in a research report on Thursday, August 7th. Finally, Needham & Company LLC reaffirmed a "hold" rating on shares of AppLovin in a report on Tuesday, August 26th. Two research analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $540.76.

Insider Activity

In related news, CEO Arash Adam Foroughi sold 26,200 shares of AppLovin stock in a transaction dated Friday, August 22nd. The shares were sold at an average price of $440.23, for a total value of $11,534,026.00. Following the sale, the chief executive officer directly owned 2,590,054 shares in the company, valued at $1,140,219,472.42. This trade represents a 1.00% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Dawson Alyssa Harvey sold 350 shares of AppLovin stock in a transaction dated Friday, September 5th. The shares were sold at an average price of $487.97, for a total transaction of $170,789.50. Following the completion of the sale, the director owned 3,150 shares in the company, valued at approximately $1,537,105.50. This represents a 10.00% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, 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.

Hedge Funds Weigh In On AppLovin

Hedge funds have recently made changes to their positions in the business. Atala Financial Inc acquired a new position in shares of AppLovin in the 1st quarter worth approximately $26,000. Hilltop National Bank acquired a new position in shares of AppLovin in the 2nd quarter worth approximately $26,000. LFA Lugano Financial Advisors SA acquired a new position in shares of AppLovin in the 2nd quarter worth approximately $26,000. Alpine Bank Wealth Management acquired a new position in shares of AppLovin in the 1st quarter worth approximately $27,000. Finally, ORG Wealth Partners LLC acquired a new position in shares of AppLovin in the 1st quarter worth approximately $29,000. Institutional investors and hedge funds own 41.85% of the company's stock.

AppLovin Price Performance

The company's 50 day moving average price is $474.49 and its 200-day moving average price is $373.64. The company has a market cap of $226.58 billion, a price-to-earnings ratio of 95.15, a PEG ratio of 3.55 and a beta of 2.44. The company has a debt-to-equity ratio of 3.01, a quick ratio of 2.74 and a current ratio of 2.74.

AppLovin (NASDAQ:APP - Get Free Report) last released its earnings results on Wednesday, August 6th. The company reported $2.26 earnings per share for the quarter, topping the consensus estimate of $2.05 by $0.21. The business had revenue of $1.26 billion for the quarter, compared to the consensus estimate of $1.37 billion. AppLovin had a net margin of 45.72% and a return on equity of 252.67%. The firm's quarterly revenue was up 77.1% compared to the same quarter last year. During the same period last year, the firm posted $0.89 earnings per share. On average, equities research analysts forecast that AppLovin Corporation will post 6.87 earnings per share for the current fiscal year.

About AppLovin

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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