AppLovin (NASDAQ:APP) Trading Up 1.7% - Here's What Happened

AppLovin Corporation (NASDAQ:APP - Get Free Report)'s share price traded up 1.7% during trading on Wednesday . The stock traded as high as $354.72 and last traded at $350.55. 987,348 shares were traded during trading, a decline of 84% from the average session volume of 6,190,257 shares. The stock had previously closed at $344.75.

Analyst Ratings Changes

Several research analysts have weighed in on the company. Wells Fargo & Company lifted their target price on AppLovin from $386.00 to $405.00 and gave the stock an "overweight" rating in a report on Thursday, May 8th. Benchmark reaffirmed a "buy" rating and set a $525.00 price target on shares of AppLovin in a research report on Thursday, May 8th. Loop Capital reiterated a "buy" rating and issued a $650.00 price objective on shares of AppLovin in a research report on Friday, March 28th. Piper Sandler restated an "overweight" rating and set a $470.00 target price (up from $455.00) on shares of AppLovin in a report on Thursday, June 26th. Finally, JPMorgan Chase & Co. lifted their price target on shares of AppLovin from $355.00 to $400.00 and gave the company a "neutral" rating in a research note on Tuesday, June 3rd. One investment analyst has rated the stock with a sell rating, three have given a hold rating, sixteen have assigned a buy rating and three have assigned a strong buy rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $438.43.

AppLovin Stock Down 3.2%

The company has a debt-to-equity ratio of 6.10, a current ratio of 1.68 and a quick ratio of 1.68. The firm has a 50-day moving average of $357.68 and a 200 day moving average of $334.38. The stock has a market capitalization of $113.41 billion, a price-to-earnings ratio of 60.49, a PEG ratio of 2.10 and a beta of 2.42.

AppLovin (NASDAQ:APP - Get Free Report) last released its earnings results on Wednesday, May 7th. The company reported $1.67 earnings per share for the quarter, beating the consensus estimate of $1.45 by $0.22. The business had revenue of $1.48 billion during the quarter, compared to analysts' expectations of $1.38 billion. AppLovin had a net margin of 37.38% and a return on equity of 224.65%. The firm's revenue was up 40.3% on a year-over-year basis. During the same period last year, the business earned $0.67 earnings per share. As a group, sell-side analysts forecast that AppLovin Corporation will post 6.87 earnings per share for the current fiscal year.

Insider Activity

In related news, CEO Arash Adam Foroughi sold 100,000 shares of the firm's stock in a transaction dated Wednesday, May 21st. The shares were sold at an average price of $367.51, for a total value of $36,751,000.00. Following the completion of the sale, the chief executive officer directly owned 2,760,363 shares in the company, valued at approximately $1,014,461,006.13. This trade represents a 3.50% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Herald Y. Chen sold 400,000 shares of the business's stock in a transaction that occurred on Wednesday, May 14th. The stock was sold at an average price of $374.61, for a total value of $149,844,000.00. Following the transaction, the director directly owned 221,209 shares in the company, valued at approximately $82,867,103.49. This trade represents a 64.39% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 1,212,968 shares of company stock valued at $455,062,980 over the last quarter. 13.66% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On AppLovin

Several hedge funds have recently added to or reduced their stakes in the business. FMR LLC grew its stake in AppLovin by 75.5% in the 4th quarter. FMR LLC now owns 13,851,122 shares of the company's stock valued at $4,485,409,000 after buying an additional 5,957,885 shares during the last quarter. Dynasty Wealth Management LLC grew its position in shares of AppLovin by 117,664.4% in the first quarter. Dynasty Wealth Management LLC now owns 2,702,694 shares of the company's stock valued at $716,133,000 after purchasing an additional 2,700,399 shares during the last quarter. Norges Bank bought a new position in shares of AppLovin during the fourth quarter worth approximately $828,138,000. Arrowstreet Capital Limited Partnership lifted its holdings in AppLovin by 457.2% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 2,893,148 shares of the company's stock worth $936,888,000 after purchasing an additional 2,373,885 shares during the last quarter. Finally, Alliancebernstein L.P. lifted its holdings in AppLovin by 193.6% during the 4th quarter. Alliancebernstein L.P. now owns 2,725,101 shares of the company's stock worth $882,469,000 after purchasing an additional 1,797,027 shares during the last quarter. Institutional investors and hedge funds own 41.85% of the company's stock.

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.