AppLovin (NASDAQ:APP) Stock Price Up 3% - What's Next?

Key Points

• AppLovin's stock rose 3% to $517.23 mid-day on Monday (previous close $502.14) while trading volume was about 24% below its average session level.
• Several analysts trimmed price targets (e.g., Oppenheimer to $660, Goldman to $585), but the consensus remains a Moderate Buy with an average target of $654.50 (21 Buys, 4 Holds).
• The company beat estimates with EPS $3.24 vs. $2.89 and revenue $1.66B vs. $1.61B (revenue up 66% YoY), though it trades at a relatively high valuation (market cap $174.45B, P/E ~53).

AppLovin Corporation (NASDAQ:APP - Get Free Report)'s stock price shot up 3% during mid-day trading on Monday . The stock traded as high as $520.36 and last traded at $517.23. 5,060,559 shares traded hands during mid-day trading, a decline of 24% from the average session volume of 6,686,445 shares. The stock had previously closed at $502.14.

Wall Street Analyst Weigh In

Several research analysts have recently commented on the company. Oppenheimer reduced their target price on AppLovin from $740.00 to $660.00 and set an "outperform" rating for the company in a research note on Thursday. The Goldman Sachs Group cut their price target on AppLovin from $710.00 to $585.00 and set a "neutral" rating for the company in a report on Thursday, February 12th. Needham & Company LLC reaffirmed a "buy" rating and set a $700.00 price objective on shares of AppLovin in a research report on Thursday, February 12th. Piper Sandler reiterated an "overweight" rating and issued a $650.00 price objective (down from $800.00) on shares of AppLovin in a report on Thursday, February 12th. Finally, Morgan Stanley set a $720.00 target price on shares of AppLovin in a research note on Thursday, February 12th. Twenty-one investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $654.50.

AppLovin Price Performance

The company has a current ratio of 3.32, a quick ratio of 3.32 and a debt-to-equity ratio of 1.65. The company has a 50 day moving average of $514.19 and a 200-day moving average of $573.97. The firm has a market capitalization of $174.45 billion, a P/E ratio of 53.05, a P/E/G ratio of 1.03 and a beta of 2.51.

AppLovin (NASDAQ:APP - Get Free Report) last posted its quarterly earnings data on Wednesday, February 11th. The company reported $3.24 earnings per share for the quarter, topping the consensus estimate of $2.89 by $0.35. AppLovin had a return on equity of 245.64% and a net margin of 57.42%.The firm had revenue of $1.66 billion for the quarter, compared to analysts' expectations of $1.61 billion. During the same quarter last year, the business earned $1.73 EPS. The company's quarterly revenue was up 66.0% compared to the same quarter last year. On average, sell-side analysts predict that AppLovin Corporation will post 6.87 EPS for the current year.

Insider Buying and Selling

In other AppLovin news, insider Victoria Valenzuela sold 7,609 shares of AppLovin stock in a transaction dated Thursday, December 18th. The shares were sold at an average price of $657.13, for a total value of $5,000,102.17. Following the completion of the sale, the insider owned 277,110 shares in the company, valued at $182,097,294.30. The trade was a 2.67% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 13.66% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Revolve Wealth Partners LLC bought a new stake in shares of AppLovin in the fourth quarter valued at approximately $294,000. Bison Wealth LLC acquired a new position in AppLovin in the 4th quarter valued at $239,000. Integrated Wealth Concepts LLC raised its holdings in AppLovin by 58.0% in the 1st quarter. Integrated Wealth Concepts LLC now owns 1,692 shares of the company's stock valued at $448,000 after acquiring an additional 621 shares in the last quarter. Atlantic Union Bankshares Corp bought a new stake in shares of AppLovin during the 2nd quarter valued at $108,000. Finally, Golden State Wealth Management LLC grew its holdings in shares of AppLovin by 160.9% during the 2nd quarter. Golden State Wealth Management LLC now owns 120 shares of the company's stock worth $42,000 after purchasing an additional 74 shares in the last quarter. Institutional investors and hedge funds own 41.85% of the company's stock.

AppLovin Company Profile

AppLovin Corporation is a Palo Alto–based mobile technology company that provides software and services to help app developers grow and monetize their businesses. The company operates a data-driven advertising and marketing platform that connects app publishers and advertisers, delivering tools for user acquisition, monetization, analytics and creative optimization. AppLovin's technology is integrated into a broad set of mobile applications through software development kits (SDKs) and ad products designed to maximize revenue and engagement for developers.

Key components of AppLovin's offering include an ad mediation and exchange platform that enables publishers to manage and monetize inventory across multiple demand sources, and a user-acquisition platform that helps advertisers target and scale campaigns.

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