AppLovin (NASDAQ:APP) Stock Price Expected to Rise, Benchmark Analyst Says

Key Points

• Benchmark analysts increased their target price for AppLovin from $525.00 to $640.00, indicating a potential upside of 9.97% from its current price.
• Other firms, including Wedbush and BTIG Research, have also raised their target prices, with a high of $725.00 and numerous analysts maintaining a "buy" or "outperform" rating on the stock.
• In Q2, AppLovin reported earnings of $2.26 EPS, surpassing estimates, and the company's revenue grew 77.1% year-over-year despite falling short of analysts' expectations.

AppLovin (NASDAQ:APP - Get Free Report) had its target price increased by equities research analysts at Benchmark from $525.00 to $640.00 in a research report issued on Monday,Benzinga reports. The brokerage presently has a "buy" rating on the stock. Benchmark's target price suggests a potential upside of 9.97% from the stock's current price.

Other research analysts have also recently issued reports about the company. Wedbush upped their price objective on AppLovin from $620.00 to $725.00 and gave the stock an "outperform" rating in a research report on Friday. Scotiabank reiterated an "outperform" rating on shares of AppLovin in a report on Thursday, August 28th. Citigroup reiterated a "buy" rating on shares of AppLovin in a report on Thursday, May 29th. BTIG Research upped their target price on AppLovin from $547.00 to $664.00 and gave the stock a "buy" rating in a report on Monday. Finally, Zacks Research upgraded AppLovin to a "strong-buy" rating in a research note on Friday, August 8th. Two analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, AppLovin presently has an average rating of "Moderate Buy" and an average price target of $501.95.

AppLovin Stock Up 1.9%

NASDAQ:APP opened at $582.00 on Monday. AppLovin has a 1 year low of $105.94 and a 1 year high of $587.88. The company has a current ratio of 2.74, a quick ratio of 2.74 and a debt-to-equity ratio of 3.01. The stock has a market cap of $196.86 billion, a price-to-earnings ratio of 82.67, a PEG ratio of 3.25 and a beta of 2.44. The stock has a 50-day moving average price of $424.50 and a two-hundred day moving average price of $353.86.

AppLovin (NASDAQ:APP - Get Free Report) last posted its earnings results on Wednesday, August 6th. The company reported $2.26 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 analysts' expectations of $1.37 billion. During the same period in the previous year, the firm earned $0.89 earnings per share. The company's revenue was up 77.1% on a year-over-year basis. As a group, equities analysts expect that AppLovin will post 6.87 earnings per share for the current year.

Insiders Place Their Bets

In related news, CTO Vasily Shikin sold 30,000 shares of the stock in a transaction on Friday, August 22nd. The stock was sold at an average price of $437.57, for a total value of $13,127,100.00. Following the sale, the chief technology officer owned 3,360,104 shares in the company, valued at approximately $1,470,280,707.28. This trade represents a 0.88% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider Victoria Valenzuela sold 35,000 shares of the company's stock in a transaction on Thursday, September 4th. The stock was sold at an average price of $502.23, for a total transaction of $17,578,050.00. Following the completion of the transaction, the insider owned 269,955 shares of the company's stock, valued at $135,579,499.65. This trade represents a 11.48% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 1,156,788 shares of company stock worth $514,863,333. 13.66% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Norges Bank purchased a new stake in AppLovin during the second quarter valued at about $951,541,000. Dynasty Wealth Management LLC boosted its position in AppLovin by 117,664.4% during the first quarter. Dynasty Wealth Management LLC now owns 2,702,694 shares of the company's stock valued at $716,133,000 after buying an additional 2,700,399 shares during the period. Price T Rowe Associates Inc. MD boosted its position in AppLovin by 36.7% during the first quarter. Price T Rowe Associates Inc. MD now owns 6,588,483 shares of the company's stock valued at $1,745,752,000 after buying an additional 1,769,400 shares during the period. Vanguard Group Inc. raised its stake in shares of AppLovin by 7.3% during the first quarter. Vanguard Group Inc. now owns 17,830,675 shares of the company's stock valued at $4,724,594,000 after acquiring an additional 1,213,536 shares during the last quarter. Finally, Baillie Gifford & Co. raised its stake 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 valued at $1,396,486,000 after acquiring an additional 1,185,859 shares during the last quarter. 41.85% of the stock is currently owned by hedge funds and other institutional investors.

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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