AppLovin (NASDAQ:APP) Trading 5.1% Higher - Here's Why

Key Points

• AppLovin's stock price increased by 5.1%, trading at $620.00 with over 4 million shares exchanged, despite a 44% decline in trading volume compared to average levels.
• Analysts' ratings are mixed, with one firm issuing an "outperform" rating and a $700.00 price target, while another lowered their rating to "hold." The consensus rating remains a "Moderate Buy" with an average target price of $605.13.
• AppLovin reported a net margin of 45.72% and revenue of $1.26 billion for the last quarter, outpacing earnings estimates despite missing revenue expectations.

AppLovin Corporation (NASDAQ:APP - Get Free Report)'s stock price traded up 5.1% during trading on Friday . The stock traded as high as $627.11 and last traded at $620.00. 4,067,755 shares changed hands during trading, a decline of 44% from the average session volume of 7,303,170 shares. The stock had previously closed at $589.70.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on the stock. Royal Bank Of Canada assumed coverage on shares of AppLovin in a research note on Monday, October 13th. They set an "outperform" rating and a $700.00 price target on the stock. Wall Street Zen lowered shares of AppLovin from a "buy" rating to a "hold" rating in a research note on Saturday, August 9th. Citigroup lifted their price target on shares of AppLovin from $600.00 to $850.00 and gave the stock a "buy" rating in a research note on Wednesday, October 1st. Scotiabank reiterated an "outperform" rating on shares of AppLovin in a research note on Thursday, August 28th. Finally, Zacks Research lowered shares of AppLovin from a "strong-buy" rating to a "hold" rating in a research note on Monday, October 6th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, five have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $605.13.

AppLovin Trading Up 5.1%

The company has a debt-to-equity ratio of 3.01, a current ratio of 2.74 and a quick ratio of 2.74. The business's 50 day moving average price is $565.46 and its 200-day moving average price is $420.20. The firm has a market capitalization of $209.72 billion, a price-to-earnings ratio of 88.07, a price-to-earnings-growth ratio of 3.07 and a beta of 2.53.

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

Insider Activity at AppLovin

In related news, 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 transaction of $11,534,026.00. Following the sale, the chief executive officer owned 2,590,054 shares of the company's stock, valued at approximately $1,140,219,472.42. The trade was a 1.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Dawson Alyssa Harvey sold 350 shares of the business's stock in a transaction dated Friday, September 5th. The stock was sold at an average price of $487.97, for a total transaction of $170,789.50. Following the sale, the director directly owned 3,150 shares in the company, valued at approximately $1,537,105.50. This represents a 10.00% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 1,156,788 shares of company stock worth $514,863,333 in the last ninety days. Corporate insiders own 13.66% of the company's stock.

Institutional Trading of AppLovin

Institutional investors have recently added to or reduced their stakes in the stock. Legal Advantage Investments Inc. purchased a new stake in AppLovin during the second quarter worth about $1,523,000. Park Avenue Securities LLC boosted its holdings in AppLovin by 30.6% during the second quarter. Park Avenue Securities LLC now owns 20,890 shares of the company's stock worth $7,313,000 after buying an additional 4,890 shares in the last quarter. IFM Investors Pty Ltd boosted its holdings in AppLovin by 15.6% during the second quarter. IFM Investors Pty Ltd now owns 45,209 shares of the company's stock worth $15,827,000 after buying an additional 6,104 shares in the last quarter. Aberdeen Group plc boosted its holdings in AppLovin by 6.5% during the second quarter. Aberdeen Group plc now owns 114,180 shares of the company's stock worth $39,972,000 after buying an additional 7,001 shares in the last quarter. Finally, Lee Johnson Capital Management LLC lifted its holdings in shares of AppLovin by 13.6% in the second quarter. Lee Johnson Capital Management LLC now owns 12,449 shares of the company's stock valued at $4,358,000 after purchasing an additional 1,491 shares in the last quarter. Hedge funds and other institutional investors own 41.85% of the company's stock.

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.

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