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

Key Points

• Scotiabank raised its price target for AppLovin from $450.00 to $575.00, giving it a "sector outperform" rating and indicating a potential upside of 19.02%.
• AppLovin reported a Q2 earnings per share (EPS) of $2.26, exceeding analyst expectations, but its revenue of $1.26 billion fell short of estimates.
• Institutional investors own approximately 41.85% of AppLovin’s shares, indicating significant institutional interest in the stock.

AppLovin (NASDAQ:APP - Get Free Report) had its price objective lifted by equities research analysts at Scotiabank from $450.00 to $575.00 in a note issued to investors on Thursday,Benzinga reports. The firm presently has a "sector outperform" rating on the stock. Scotiabank's price objective indicates a potential upside of 19.02% from the company's current price.

Other equities research analysts have also issued reports about the company. Morgan Stanley increased their price target on AppLovin from $460.00 to $480.00 and gave the company an "overweight" rating in a research report on Thursday, August 7th. JPMorgan Chase & Co. increased their price target on AppLovin from $400.00 to $425.00 and gave the company a "neutral" rating in a research report on Thursday, August 7th. Wedbush reissued an "outperform" rating and issued a $620.00 price target on shares of AppLovin in a research report on Thursday, August 7th. UBS Group increased their price target on AppLovin from $450.00 to $475.00 and gave the company a "buy" rating in a research report on Thursday, May 8th. Finally, Oppenheimer restated an "outperform" rating and issued a $500.00 price objective (down previously from $560.00) on shares of AppLovin in a research note on Thursday, May 8th. Two analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $478.81.

AppLovin Stock Up 4.4%

NASDAQ APP traded up $20.18 on Thursday, reaching $483.12. The company had a trading volume of 2,150,162 shares, compared to its average volume of 7,014,318. The stock has a market capitalization of $163.42 billion, a P/E ratio of 68.87, a P/E/G ratio of 2.62 and a beta of 2.43. The company's fifty day moving average is $381.53 and its 200 day moving average is $346.92. AppLovin has a 52-week low of $82.51 and a 52-week high of $525.15. The company has a quick ratio of 2.74, a current ratio of 2.74 and a debt-to-equity ratio of 3.01.

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

Insider Transactions at AppLovin

In other news, Director Herald Y. Chen sold 200,000 shares of the stock in a transaction on Tuesday, August 12th. The stock was sold at an average price of $464.69, for a total transaction of $92,938,000.00. Following the completion of the transaction, the director owned 381,929 shares in the company, valued at approximately $177,478,587.01. This represents a 34.37% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Eduardo Vivas sold 125,000 shares of the stock in a transaction on 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 owned 7,283,292 shares of the company's stock, valued at $3,394,014,072. The trade was a 1.69% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 1,236,152 shares of company stock worth $545,240,378 over the last 90 days. 13.66% of the stock is owned by insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Atala Financial Inc bought a new position in AppLovin in the 1st quarter worth about $26,000. Hilltop National Bank bought a new position in AppLovin in the 2nd quarter worth about $26,000. LFA Lugano Financial Advisors SA bought a new position in AppLovin in the 2nd quarter worth about $26,000. Alpine Bank Wealth Management bought a new position in AppLovin in the 1st quarter worth about $27,000. Finally, ORG Wealth Partners LLC bought a new position in AppLovin in the 1st quarter worth about $29,000. 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.

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