AppLovin (NASDAQ:APP) Trading 6.2% Higher Following Analyst Upgrade

Key Points

• AppLovin's shares rose 6.2% after Wells Fargo upgraded the stock's price target from $480.00 to $491.00 and maintained an overweight rating.
• The company currently has an average rating of "Moderate Buy" from analysts, with a consensus price target of $472.86.
• AppLovin reported earnings of $2.26 per share for the last quarter, exceeding estimates, but its revenue fell short of predictions at $1.26 billion.

AppLovin Corporation (NASDAQ:APP - Get Free Report) shares traded up 6.2% during trading on Friday after Wells Fargo & Company raised their price target on the stock from $480.00 to $491.00. Wells Fargo & Company currently has an overweight rating on the stock. AppLovin traded as high as $444.23 and last traded at $444.56. 2,847,617 shares traded hands during trading, a decline of 60% from the average session volume of 7,074,345 shares. The stock had previously closed at $418.76.

Several other brokerages have also issued reports on APP. Scotiabank boosted their price target on shares of AppLovin from $430.00 to $450.00 and gave the company a "sector outperform" rating in a report on Thursday, August 7th. Piper Sandler boosted their price target on shares of AppLovin from $470.00 to $500.00 and gave the company an "overweight" rating in a report on Thursday, August 7th. HSBC set a $436.00 price target on shares of AppLovin and gave the company a "buy" rating in a report on Wednesday, April 23rd. Zacks Research raised shares of AppLovin to a "strong-buy" rating in a report on Friday, August 8th. Finally, Wedbush reissued an "outperform" rating and issued a $620.00 price target on shares of AppLovin in a report on Thursday, August 7th. Two equities research analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $472.86.

Insider Activity at AppLovin

In related news, Director Barbara Messing sold 1,500 shares of the business's stock in a transaction on Wednesday, June 11th. The shares were sold at an average price of $382.46, for a total value of $573,690.00. Following the sale, the director directly owned 9,510 shares of the company's stock, valued at approximately $3,637,194.60. The trade was a 13.62% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Herald Y. Chen sold 50,000 shares of the business's stock in a transaction on Friday, August 15th. The shares were sold at an average price of $436.61, for a total transaction of $21,830,500.00. Following the completion of the sale, the director directly owned 181,929 shares in the company, valued at $79,432,020.69. This represents a 21.56% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 939,714 shares of company stock valued at $419,126,104. 13.66% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On AppLovin

Several institutional investors and hedge funds have recently added to or reduced their stakes in APP. Fuller & Thaler Asset Management Inc. bought a new stake in AppLovin during the 4th quarter worth about $25,000. Atala Financial Inc bought a new stake in AppLovin during the 1st quarter worth about $26,000. Hilltop National Bank acquired a new position in shares of AppLovin during the 2nd quarter worth about $26,000. LFA Lugano Financial Advisors SA acquired a new position in shares of AppLovin during the 2nd quarter worth about $26,000. Finally, Alpine Bank Wealth Management acquired a new position in shares of AppLovin during the 1st quarter worth about $27,000. 41.85% of the stock is owned by institutional investors.

AppLovin Stock Up 5.9%

The company has a market capitalization of $150.00 billion, a price-to-earnings ratio of 62.85, a price-to-earnings-growth ratio of 2.31 and a beta of 2.43. The firm's 50 day moving average price is $373.84 and its two-hundred day moving average price is $344.71. The company has a current ratio of 2.74, a quick ratio of 2.74 and a debt-to-equity ratio of 3.01.

AppLovin (NASDAQ:APP - Get Free Report) last released 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. The company had revenue of $1.26 billion for the quarter, compared to analyst estimates of $1.37 billion. AppLovin had a net margin of 45.72% and a return on equity of 252.67%. AppLovin's revenue for the quarter was up 77.1% compared to the same quarter last year. During the same period in the previous year, the business earned $0.89 EPS. Sell-side analysts anticipate that AppLovin Corporation will post 6.87 earnings per share for the current fiscal year.

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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