AppLovin (NASDAQ:APP) Stock Price Up 3.9% - What's Next?

Key Points

• AppLovin's stock price increased by 3.9% to last trade at $468.18 on Tuesday, despite a significant drop in trading volume compared to the average.
• The company reported earnings of $2.26 per share for the quarter, surpassing analyst expectations, although its revenue fell short of consensus estimates at $1.26 billion.
• Analyst ratings are mixed, with a consensus rating of "Moderate Buy," as several firms have issued target price changes and ratings adjustments recently.

AppLovin Corporation (NASDAQ:APP - Get Free Report)'s stock price rose 3.9% during trading on Tuesday . The company traded as high as $471.92 and last traded at $468.18. Approximately 2,395,288 shares traded hands during mid-day trading, a decline of 66% from the average daily volume of 7,046,980 shares. The stock had previously closed at $450.68.

Analyst Ratings Changes

APP has been the subject of a number of research analyst reports. Wall Street Zen downgraded shares of AppLovin from a "buy" rating to a "hold" rating in a research report on Saturday, August 9th. Wells Fargo & Company upped their target price on shares of AppLovin from $480.00 to $491.00 and gave the company an "overweight" rating in a report on Thursday, August 21st. Benchmark reaffirmed a "buy" rating and set a $525.00 target price on shares of AppLovin in a report on Thursday, May 8th. Scotiabank boosted their price objective on shares of AppLovin from $430.00 to $450.00 and gave the company a "sector outperform" rating in a research report on Thursday, August 7th. Finally, JPMorgan Chase & Co. boosted their price objective on shares of AppLovin from $400.00 to $425.00 and gave the company a "neutral" rating in a research report on Thursday, August 7th. Two investment analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $472.86.

AppLovin Price Performance

The company has a market cap of $157.89 billion, a P/E ratio of 66.21, a P/E/G ratio of 2.47 and a beta of 2.43. The company has a debt-to-equity ratio of 3.01, a quick ratio of 2.74 and a current ratio of 2.74. The firm's fifty day moving average is $376.98 and its two-hundred day moving average is $345.25.

AppLovin (NASDAQ:APP - Get Free Report) last issued its quarterly earnings data 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 business had revenue of $1.26 billion for the quarter, compared to the consensus estimate of $1.37 billion. AppLovin had a return on equity of 252.67% and a net margin of 45.72%.The company's quarterly revenue was up 77.1% compared to the same quarter last year. During the same period in the prior year, the business posted $0.89 earnings per share. As a group, analysts anticipate that AppLovin Corporation will post 6.87 earnings per share for the current fiscal year.

Insider Transactions at AppLovin

In related news, CEO Arash Adam Foroughi sold 26,200 shares of AppLovin stock in a transaction that occurred on 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 sale, the chief executive officer directly owned 2,590,054 shares in the company, valued at $1,140,219,472.42. This trade represents a 1.00% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CTO Vasily Shikin sold 17,564 shares of AppLovin stock in a transaction that occurred on Friday, August 22nd. The shares were sold at an average price of $437.48, for a total transaction of $7,683,898.72. Following the sale, the chief technology officer owned 53,389 shares of the company's stock, valued at approximately $23,356,619.72. The trade was a 24.75% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 1,221,152 shares of company stock valued at $538,490,378 in the last quarter. 13.66% of the stock is currently owned by corporate insiders.

Institutional Trading of AppLovin

A number of institutional investors and hedge funds have recently bought and sold shares of APP. Hilltop National Bank purchased a new stake in AppLovin during the second quarter worth approximately $26,000. LFA Lugano Financial Advisors SA purchased a new position in shares of AppLovin in the 2nd quarter valued at approximately $26,000. Twin Peaks Wealth Advisors LLC purchased a new position in shares of AppLovin in the 2nd quarter valued at approximately $33,000. Atala Financial Inc acquired a new stake in AppLovin in the first quarter valued at $26,000. Finally, Hoey Investments Inc. acquired a new stake in AppLovin in the second quarter valued at $35,000. 41.85% of the stock is currently owned by hedge funds and other institutional investors.

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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