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

Key Points

• Oppenheimer raised its target price for AppLovin's stock from $500.00 to $740.00, indicating a potential upside of 12.00% from its previous closing price.
• AppLovin's recent earnings report showed $2.26 earnings per share, exceeding expectations, although revenue fell short at $1.26 billion.
• Insider trading activity includes a significant sale by CTO Vasily Shikin, who sold 30,000 shares valued at approximately $13.1 million.

AppLovin (NASDAQ:APP - Get Free Report) had its target price lifted by Oppenheimer from $500.00 to $740.00 in a research report issued on Tuesday,Benzinga reports. The brokerage currently has an "outperform" rating on the stock. Oppenheimer's target price would suggest a potential upside of 12.00% from the stock's previous close.

APP has been the topic of several other research reports. Citigroup reissued a "buy" rating on shares of AppLovin in a research note on Thursday, May 29th. Scotiabank restated an "outperform" rating on shares of AppLovin in a report on Thursday, August 28th. Needham & Company LLC restated a "hold" rating on shares of AppLovin in a report on Tuesday, August 26th. Wall Street Zen downgraded shares of AppLovin from a "buy" rating to a "hold" rating in a report on Saturday, August 9th. Finally, Wells Fargo & Company raised their target price on shares of AppLovin from $480.00 to $491.00 and gave the stock an "overweight" rating in a report on Thursday, August 21st. Two investment 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 stock. According to MarketBeat.com, AppLovin has a consensus rating of "Moderate Buy" and an average price target of $513.38.

AppLovin Price Performance

Shares of AppLovin stock traded up $17.24 during mid-day trading on Tuesday, reaching $660.74. 5,091,680 shares of the stock were exchanged, compared to its average volume of 7,454,323. The company has a market cap of $223.50 billion, a price-to-earnings ratio of 93.89, a price-to-earnings-growth ratio of 3.60 and a beta of 2.44. 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 firm has a 50-day simple moving average of $457.27 and a 200 day simple moving average of $367.01. AppLovin has a fifty-two week low of $125.62 and a fifty-two week high of $670.19.

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

Insider Buying and Selling

In other 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 directly owned 3,360,104 shares of the company's stock, valued at approximately $1,470,280,707.28. This represents a 0.88% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Dawson Alyssa Harvey sold 350 shares of the stock in a transaction dated Friday, September 5th. The stock was sold at an average price of $487.97, for a total value of $170,789.50. Following the sale, the director owned 3,150 shares of the company's stock, valued at $1,537,105.50. This represents a 10.00% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 1,156,788 shares of company stock valued at $514,863,333. Insiders own 13.66% of the company's stock.

Institutional Investors Weigh In On AppLovin

A number of institutional investors and hedge funds have recently modified their holdings of APP. Hilltop National Bank purchased a new position in AppLovin during the 2nd quarter worth $26,000. LFA Lugano Financial Advisors SA acquired a new position in AppLovin in the 2nd quarter worth about $26,000. Twin Peaks Wealth Advisors LLC acquired a new position in shares of AppLovin during the second quarter valued at approximately $33,000. Atala Financial Inc acquired a new position in shares of AppLovin during the first quarter valued at approximately $26,000. Finally, Hoey Investments Inc. acquired a new position in shares of AppLovin during the second quarter valued at approximately $35,000. 41.85% of the stock is owned by institutional investors.

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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