AppLovin (NASDAQ:APP) Stock Price Up 1.8% - Here's Why

Key Points

• AppLovin's stock increased by 1.8% during mid-day trading, reaching a last traded price of $385.81, despite a significant decline in trading volume compared to its daily average.
• Analysts have varying views on AppLovin, with Piper Sandler and Wells Fargo issuing price targets of $470.00 and $405.00 respectively, while the overall consensus rating is a "Moderate Buy" with a target price of $447.57.
• The company reported robust quarterly earnings, with an EPS of $1.67 exceeding estimates and a revenue of $1.48 billion, marking a 40.3% year-over-year increase.

AppLovin Corporation (NASDAQ:APP - Get Free Report) shares were up 1.8% during mid-day trading on Monday . The stock traded as high as $390.88 and last traded at $385.81. Approximately 2,053,776 shares traded hands during mid-day trading, a decline of 71% from the average daily volume of 7,068,576 shares. The stock had previously closed at $379.17.

Analyst Ratings Changes

Several analysts have issued reports on APP shares. Piper Sandler reissued an "overweight" rating and issued a $470.00 price target (up previously from $455.00) on shares of AppLovin in a research note on Thursday, June 26th. Oppenheimer reaffirmed an "outperform" rating and issued a $500.00 target price (down previously from $560.00) on shares of AppLovin in a research report on Thursday, May 8th. Needham & Company LLC reissued a "hold" rating on shares of AppLovin in a research report on Thursday, June 26th. Wedbush raised AppLovin to a "strong-buy" rating in a research report on Tuesday, July 1st. Finally, Wells Fargo & Company boosted their price target on AppLovin from $386.00 to $405.00 and gave the stock an "overweight" rating in a research report on Thursday, May 8th. One equities research analyst has rated the stock with a sell rating, three have given a hold rating, seventeen have given a buy rating and three have given a strong buy rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $447.57.

AppLovin Stock Up 3.5%

The firm has a 50 day simple moving average of $363.45 and a two-hundred day simple moving average of $337.58. The stock has a market capitalization of $132.80 billion, a P/E ratio of 70.72, a PEG ratio of 2.26 and a beta of 2.43. The company has a quick ratio of 1.68, a current ratio of 1.68 and a debt-to-equity ratio of 6.10.

AppLovin (NASDAQ:APP - Get Free Report) last announced its quarterly earnings results on Wednesday, May 7th. The company reported $1.67 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.45 by $0.22. The company had revenue of $1.48 billion during the quarter, compared to the consensus estimate of $1.38 billion. AppLovin had a net margin of 37.38% and a return on equity of 224.65%. The company's revenue for the quarter was up 40.3% compared to the same quarter last year. During the same period in the prior year, the business earned $0.67 earnings per share. On average, equities research analysts expect that AppLovin Corporation will post 6.87 earnings per share for the current year.

Insiders Place Their Bets

In related news, Director Dawson Alyssa Harvey sold 513 shares of the stock in a transaction on Friday, June 6th. The stock was sold at an average price of $420.30, for a total value of $215,613.90. Following the completion of the sale, the director directly owned 3,451 shares in the company, valued at $1,450,455.30. This represents a 12.94% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Barbara Messing sold 1,500 shares of the stock in a transaction on Wednesday, June 11th. The shares were sold at an average price of $382.46, for a total value of $573,690.00. Following the completion of the sale, the director owned 9,510 shares of the company's stock, valued at $3,637,194.60. The trade was a 13.62% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 1,212,968 shares of company stock valued at $455,062,980 over the last ninety days. 13.66% of the stock is currently owned by corporate insiders.

Institutional Trading of AppLovin

A number of large investors have recently bought and sold shares of the business. Quadrant Capital Group LLC boosted its position in shares of AppLovin by 6.7% during the 4th quarter. Quadrant Capital Group LLC now owns 526 shares of the company's stock worth $170,000 after purchasing an additional 33 shares in the last quarter. Forum Financial Management LP boosted its position in shares of AppLovin by 0.9% during the 4th quarter. Forum Financial Management LP now owns 3,776 shares of the company's stock worth $1,223,000 after purchasing an additional 33 shares in the last quarter. Vestcor Inc boosted its position in shares of AppLovin by 0.8% during the 1st quarter. Vestcor Inc now owns 4,108 shares of the company's stock worth $1,088,000 after purchasing an additional 33 shares in the last quarter. Fortitude Family Office LLC boosted its position in shares of AppLovin by 32.7% during the 2nd quarter. Fortitude Family Office LLC now owns 138 shares of the company's stock worth $48,000 after purchasing an additional 34 shares in the last quarter. Finally, GSG Advisors LLC boosted its position in shares of AppLovin by 0.3% during the 1st quarter. GSG Advisors LLC now owns 10,256 shares of the company's stock worth $2,820,000 after purchasing an additional 35 shares in the last quarter. 41.85% of the stock is currently owned by institutional investors and hedge funds.

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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