AppLovin (NASDAQ:APP) Stock Price Up 1.5% - Should You Buy?

Key Points

• AppLovin's share price increased by 1.5%, reaching a closing price of $462.81 after trading a significantly lower volume than average.
• Analysts have revised AppLovin's price targets, with Wells Fargo raising theirs to $480 and multiple firms maintaining positive ratings despite prior earnings miss.
• Insider selling activity included a 400,000 shares sale by Director Herald Y. Chen, indicating a substantial decrease in personal stake.

AppLovin Corporation (NASDAQ:APP - Get Free Report) was up 1.5% on Monday . The stock traded as high as $470.04 and last traded at $462.81. Approximately 2,439,289 shares were traded during trading, a decline of 66% from the average daily volume of 7,197,015 shares. The stock had previously closed at $455.98.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on APP shares. Citigroup reissued a "buy" rating on shares of AppLovin in a report on Thursday, May 29th. Jefferies Financial Group raised their price objective on AppLovin from $460.00 to $530.00 and gave the company a "buy" rating in a report on Thursday, May 8th. Oppenheimer reissued an "outperform" rating and set a $500.00 price objective (down previously from $560.00) on shares of AppLovin in a report on Thursday, May 8th. UBS Group raised their price objective on AppLovin from $450.00 to $475.00 and gave the company a "buy" rating in a report on Thursday, May 8th. Finally, Piper Sandler raised their price objective on AppLovin from $470.00 to $500.00 and gave the company an "overweight" rating in a report on Thursday, August 7th. One research analyst has rated the stock with a sell rating, four have assigned a hold rating, eighteen have issued a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat.com, AppLovin presently has an average rating of "Moderate Buy" and an average target price of $472.33.

AppLovin Stock Performance

The company has a 50-day moving average price of $368.05 and a two-hundred day moving average price of $340.46. The company has a current ratio of 2.74, a quick ratio of 2.74 and a debt-to-equity ratio of 3.01. The stock has a market capitalization of $157.70 billion, a P/E ratio of 66.25, a price-to-earnings-growth ratio of 2.60 and a beta of 2.43.

AppLovin (NASDAQ:APP - Get Free Report) last posted its quarterly earnings data on Wednesday, August 6th. The company reported $2.26 earnings per share for the quarter, topping the consensus estimate of $2.05 by $0.21. AppLovin had a return on equity of 252.67% and a net margin of 45.72%. The firm had revenue of $1.26 billion during the quarter, compared to analyst estimates of $1.37 billion. During the same period last year, the company posted $0.89 EPS. The business's quarterly revenue was up 77.1% on a year-over-year basis. On average, equities analysts forecast that AppLovin Corporation will post 6.87 earnings per share for the current year.

Insiders Place Their Bets

In related news, Director Barbara Messing sold 1,500 shares of the company's stock in a transaction that occurred on Wednesday, June 11th. The stock was sold at an average price of $382.46, for a total transaction of $573,690.00. Following the transaction, the director directly owned 9,510 shares of the company's stock, valued at approximately $3,637,194.60. This represents a 13.62% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Dawson Alyssa Harvey sold 513 shares of the company's stock in a transaction that occurred 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 transaction, the director directly owned 3,451 shares in the company, valued at approximately $1,450,455.30. This trade represents a 12.94% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 800,398 shares of company stock worth $301,556,641 over the last three months. Insiders own 13.66% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Kingswood Wealth Advisors LLC increased its holdings in AppLovin by 5.1% during the 1st quarter. Kingswood Wealth Advisors LLC now owns 1,663 shares of the company's stock worth $445,000 after purchasing an additional 80 shares in the last quarter. Wealth Enhancement Advisory Services LLC increased its holdings in AppLovin by 62.7% during the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 172,378 shares of the company's stock worth $45,675,000 after purchasing an additional 66,453 shares in the last quarter. Yousif Capital Management LLC increased its holdings in AppLovin by 3.5% during the 1st quarter. Yousif Capital Management LLC now owns 3,544 shares of the company's stock worth $939,000 after purchasing an additional 119 shares in the last quarter. Peak Retirement Planning Inc. bought a new stake in AppLovin during the 4th quarter worth approximately $969,000. Finally, Assenagon Asset Management S.A. increased its holdings in AppLovin by 3.0% during the 1st quarter. Assenagon Asset Management S.A. now owns 4,173 shares of the company's stock worth $1,106,000 after purchasing an additional 121 shares in the last quarter. 41.85% of the stock is owned by institutional investors and hedge funds.

AppLovin Company Profile

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.