AppLovin (NASDAQ:APP) Trading 1.1% Higher - Here's Why

Key Points

• AppLovin shares rose 1.1% to $310.79 in mid-day trading, although volume was 24% below the average daily level.
• Analysts remain broadly optimistic, with the stock receiving a “Moderate Buy” consensus rating and an average price target of $556.43, despite several recent target cuts.
• AppLovin reported quarterly EPS in line with estimates at $3.76, while revenue increased 52.8% year over year to $1.92 billion; insiders have sold roughly $197.3 million of stock over the past 90 days.

AppLovin Corporation (NASDAQ:APP - Get Free Report)'s stock price rose 1.1% during trading on Wednesday . The company traded as high as $315.34 and last traded at $310.79. 4,385,302 shares traded hands during mid-day trading, a decline of 24% from the average daily volume of 5,772,358 shares. The stock had previously closed at $307.26.

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on APP. BTIG Research lowered their price target on shares of AppLovin from $574.00 to $408.00 and set a "buy" rating for the company in a report on Wednesday, August 12th. Benchmark lowered their target price on shares of AppLovin from $500.00 to $440.00 and set a "buy" rating for the company in a report on Monday. William Blair set a $440.00 target price on shares of AppLovin in a research note on Monday. The Goldman Sachs Group decreased their price objective on shares of AppLovin from $585.00 to $465.00 and set a "neutral" rating for the company in a report on Thursday, August 6th. Finally, UBS Group dropped their target price on shares of AppLovin from $798.00 to $790.00 and set a "buy" rating on the stock in a research note on Thursday, August 6th. Three analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eight have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $556.43.

AppLovin Trading Up 1.1%

The company has a 50 day moving average of $438.54 and a two-hundred day moving average of $452.21. The stock has a market capitalization of $104.01 billion, a PE ratio of 23.89, a P/E/G ratio of 0.63 and a beta of 2.54. The company has a debt-to-equity ratio of 1.11, a quick ratio of 4.30 and a current ratio of 4.30.

AppLovin (NASDAQ:APP - Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The company reported $3.76 earnings per share for the quarter, hitting the consensus estimate of $3.76. The business had revenue of $1.92 billion during the quarter, compared to the consensus estimate of $1.94 billion. AppLovin had a return on equity of 193.10% and a net margin of 64.58%.The company's quarterly revenue was up 52.8% on a year-over-year basis. During the same quarter last year, the company earned $2.39 earnings per share. Sell-side analysts predict that AppLovin Corporation will post 15.57 EPS for the current year.

Insider Buying and Selling at AppLovin

In other AppLovin news, CFO Matthew Stumpf sold 9,052 shares of the business's stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $600.00, for a total transaction of $5,431,200.00. Following the sale, the chief financial officer owned 177,450 shares in the company, valued at approximately $106,470,000. The trade was a 4.85% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Maynard G. Webb, Jr. sold 3,076 shares of the company's stock in a transaction that occurred on Monday, July 6th. The shares were sold at an average price of $521.29, for a total value of $1,603,488.04. Following the completion of the sale, the director owned 120,444 shares in the company, valued at approximately $62,786,252.76. This represents a 2.49% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 393,000 shares of company stock valued at $197,297,363. Company insiders own 12.81% of the company's stock.

Institutional Trading of AppLovin

Several hedge funds and other institutional investors have recently bought and sold shares of APP. Revolve Wealth Partners LLC acquired a new stake in shares of AppLovin during the 4th quarter worth approximately $294,000. Bison Wealth LLC purchased a new position in AppLovin in the fourth quarter valued at $239,000. Integrated Wealth Concepts LLC raised its position in shares of AppLovin by 58.0% in the first quarter. Integrated Wealth Concepts LLC now owns 1,692 shares of the company's stock worth $448,000 after acquiring an additional 621 shares during the period. NewEdge Advisors LLC grew its position in shares of AppLovin by 5.7% during the 2nd quarter. NewEdge Advisors LLC now owns 14,523 shares of the company's stock valued at $5,084,000 after acquiring an additional 782 shares during the period. Finally, Treasurer of the State of North Carolina increased its stake in shares of AppLovin by 7.2% in the 2nd quarter. Treasurer of the State of North Carolina now owns 139,189 shares of the company's stock valued at $48,727,000 after purchasing an additional 9,380 shares in the last quarter. 41.85% of the stock is owned by institutional investors and hedge funds.

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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