AppLovin (NASDAQ:APP) Trading Up 1.6% - Here's What Happened

Key Points

• AppLovin shares rose by 1.6% on Monday, trading as high as $451.50, despite a significant decline in volume compared to its average trading session.
• A number of analysts have revised their price targets for AppLovin, with updates including a target of $620 from Wedbush and an increase to $530 from Jefferies Financial Group.
• In its latest earnings report, AppLovin reported a 77.1% year-over-year increase in revenue, totaling $1.26 billion, although it missed analysts' revenue estimates.

AppLovin Corporation (NASDAQ:APP - Get Free Report) shares shot up 1.6% on Monday . The company traded as high as $451.50 and last traded at $448.79. 1,373,958 shares traded hands during trading, a decline of 81% from the average session volume of 7,060,004 shares. The stock had previously closed at $441.68.

Analysts Set New Price Targets

A number of research firms recently weighed in on APP. Wedbush restated an "outperform" rating and set a $620.00 price target on shares of AppLovin in a research report on Thursday, August 7th. Jefferies Financial Group raised their target price on shares of AppLovin from $460.00 to $530.00 and gave the stock a "buy" rating in a research note on Thursday, May 8th. The Goldman Sachs Group raised their target price on shares of AppLovin from $335.00 to $435.00 and gave the stock a "neutral" rating in a research note on Friday, May 9th. Wells Fargo & Company raised their target price on shares of AppLovin from $480.00 to $491.00 and gave the stock an "overweight" rating in a research note on Thursday. Finally, Benchmark reissued a "buy" rating and issued a $525.00 target price on shares of AppLovin in a research note on Thursday, May 8th. Two equities research analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, AppLovin currently has a consensus rating of "Moderate Buy" and a consensus target price of $472.86.

AppLovin Stock Performance

The firm's fifty day moving average price is $375.38 and its 200 day moving average price is $344.73. 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 $152.67 billion, a price-to-earnings ratio of 64.10, a price-to-earnings-growth ratio of 2.47 and a beta of 2.43.

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

Insider Buying and Selling at AppLovin

In other AppLovin news, CTO Vasily Shikin sold 17,564 shares of the 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 directly owned 53,389 shares in the company, valued at $23,356,619.72. This represents a 24.75% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CEO Arash Adam Foroughi sold 26,200 shares of the stock in a transaction that occurred on Friday, August 22nd. The stock was 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 in the company, valued at approximately $1,140,219,472.42. This trade represents a 1.00% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 1,221,152 shares of company stock valued at $538,490,378 over the last quarter. 13.66% of the stock is owned by company insiders.

Institutional Investors Weigh In On AppLovin

Hedge funds have recently added to or reduced their stakes in the business. Kingswood Wealth Advisors LLC lifted 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 buying an additional 80 shares in the last quarter. Wealth Enhancement Advisory Services LLC lifted 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 buying an additional 66,453 shares in the last quarter. Yousif Capital Management LLC lifted 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 buying an additional 119 shares in the last quarter. Peak Retirement Planning Inc. acquired a new stake in AppLovin during the 4th quarter worth approximately $969,000. Finally, Assenagon Asset Management S.A. lifted 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 buying an additional 121 shares in the last quarter. 41.85% of the stock is currently owned by institutional investors and hedge funds.

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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