AppLovin (NASDAQ:APP) Stock Price Up 2.8% - Should You Buy?

Key Points

• AppLovin's stock increased by 2.8% to a last traded price of $495.11, although trading volume saw a significant drop of 74% compared to the average daily volume.
• Analysts have mixed ratings for AppLovin, with two strong buy ratings, eighteen buy ratings, and a moderate buy consensus price target of $478.81.
• In its latest earnings report, AppLovin reported an EPS of $2.26, exceeding expectations, but its revenue of $1.26 billion fell short of forecasts.

AppLovin Corporation (NASDAQ:APP - Get Free Report) shares rose 2.8% on Wednesday . The stock traded as high as $499.87 and last traded at $495.11. Approximately 1,815,724 shares were traded during trading, a decline of 74% from the average daily volume of 6,983,004 shares. The stock had previously closed at $481.73.

Wall Street Analysts Forecast Growth

APP has been the subject of several research reports. UBS Group raised their price target on shares of AppLovin from $450.00 to $475.00 and gave the stock a "buy" rating in a research note on Thursday, May 8th. Wall Street Zen downgraded shares of AppLovin from a "buy" rating to a "hold" rating in a report on Saturday, August 9th. Wedbush restated an "outperform" rating and set a $620.00 target price on shares of AppLovin in a report on Thursday, August 7th. Scotiabank restated an "outperform" rating on shares of AppLovin in a report on Thursday, August 28th. Finally, Piper Sandler lifted their price objective on shares of AppLovin from $470.00 to $500.00 and gave the stock an "overweight" rating in a research report on Thursday, August 7th. Two research analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, AppLovin has an average rating of "Moderate Buy" and a consensus price target of $478.81.

AppLovin Stock Performance

The stock's 50-day moving average price is $392.91 and its 200-day moving average price is $347.94. The company has a market cap of $165.32 billion, a P/E ratio of 69.47, a PEG ratio of 2.68 and a beta of 2.44. The company has a debt-to-equity ratio of 3.01, a current ratio of 2.74 and a quick ratio of 2.74.

AppLovin (NASDAQ:APP - Get Free Report) last announced 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. The company 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%. AppLovin's quarterly revenue was up 77.1% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.89 earnings per share. Equities analysts anticipate that AppLovin Corporation will post 6.87 EPS for the current year.

Insider Activity

In related news, insider Victoria Valenzuela sold 15,000 shares of the business's stock in a transaction dated Monday, August 25th. The stock was sold at an average price of $450.00, for a total value of $6,750,000.00. Following the completion of the transaction, the insider owned 304,955 shares of the company's stock, valued at $137,229,750. The trade was a 4.69% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Arash Adam Foroughi sold 26,200 shares of the business's stock in a transaction dated Friday, August 22nd. The shares were sold at an average price of $440.23, for a total value of $11,534,026.00. Following the completion of the transaction, the chief executive officer directly owned 2,590,054 shares of the company's stock, valued at approximately $1,140,219,472.42. This trade represents a 1.00% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 1,236,152 shares of company stock valued at $545,240,378. 13.66% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Avestar Capital LLC raised its stake in AppLovin by 2.1% in the second quarter. Avestar Capital LLC now owns 1,117 shares of the company's stock valued at $391,000 after purchasing an additional 23 shares in the last quarter. Forum Financial Management LP raised its stake in AppLovin by 0.9% in the fourth quarter. Forum Financial Management LP now owns 3,776 shares of the company's stock valued at $1,223,000 after purchasing an additional 33 shares in the last quarter. Vestcor Inc raised its stake in AppLovin by 0.8% during the first quarter. Vestcor Inc now owns 4,108 shares of the company's stock worth $1,088,000 after acquiring an additional 33 shares in the last quarter. RWA Wealth Partners LLC raised its stake in AppLovin by 0.4% during the second quarter. RWA Wealth Partners LLC now owns 7,680 shares of the company's stock worth $2,689,000 after acquiring an additional 33 shares in the last quarter. Finally, Geneos Wealth Management Inc. raised its stake in AppLovin by 0.8% during the second quarter. Geneos Wealth Management Inc. now owns 4,431 shares of the company's stock worth $1,551,000 after acquiring an additional 33 shares in 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.

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