AppLovin (NASDAQ:APP) Trading Up 1.7% - Here's Why

Key Points

• AppLovin's stock increased by 1.7%, trading at $384.19 with a market cap of $132.49 billion, despite a significant drop in trading volume.
• Brokerage firms have issued strong ratings on AppLovin, with price targets ranging from $400.00 to $530.00, leading to a consensus rating of "Moderate Buy" with an average target price of $447.57.
• The company reported earnings per share of $1.67, exceeding estimates, with a revenue growth of 40.3% year-over-year, signaling strong financial performance.

AppLovin Corporation (NASDAQ:APP - Get Free Report)'s stock price was up 1.7% during mid-day trading on Wednesday . The company traded as high as $392.58 and last traded at $384.19. Approximately 2,731,866 shares were traded during trading, a decline of 61% from the average daily volume of 7,051,958 shares. The stock had previously closed at $377.93.

Analyst Ratings Changes

Several brokerages recently issued reports on APP. BTIG Research boosted their price target on AppLovin from $480.00 to $483.00 and gave the company a "buy" rating in a research report on Wednesday, July 23rd. Benchmark reiterated a "buy" rating and set a $525.00 target price on shares of AppLovin in a research report on Thursday, May 8th. Jefferies Financial Group boosted their target price on AppLovin from $460.00 to $530.00 and gave the stock a "buy" rating in a research report on Thursday, May 8th. Piper Sandler reiterated an "overweight" rating and set a $470.00 target price (up previously from $455.00) on shares of AppLovin in a research report on Thursday, June 26th. Finally, JPMorgan Chase & Co. boosted their target price on AppLovin from $355.00 to $400.00 and gave the stock a "neutral" rating in a research report on Tuesday, June 3rd. One research analyst has rated the stock with a sell rating, three have given a hold rating, seventeen have issued a buy rating and three have issued a strong buy rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $447.57.

AppLovin Trading Up 3.6%

The business has a fifty day simple moving average of $364.21 and a 200 day simple moving average of $338.23. The stock has a market cap of $132.49 billion, a price-to-earnings ratio of 70.52, a PEG ratio of 2.35 and a beta of 2.43. The company has a debt-to-equity ratio of 6.10, a quick ratio of 1.68 and a current ratio of 1.68.

AppLovin (NASDAQ:APP - Get Free Report) last issued its quarterly earnings results on Wednesday, May 7th. The company reported $1.67 earnings per share for the quarter, topping analysts' consensus estimates of $1.45 by $0.22. AppLovin had a return on equity of 224.65% and a net margin of 37.38%. The company had revenue of $1.48 billion for the quarter, compared to analyst estimates of $1.38 billion. During the same quarter in the prior year, the company posted $0.67 EPS. The business's revenue for the quarter was up 40.3% compared to the same quarter last year. As a group, equities analysts anticipate that AppLovin Corporation will post 6.87 EPS for the current year.

Insider Transactions at AppLovin

In other news, CTO Vasily Shikin sold 34,766 shares of AppLovin stock in a transaction that occurred on Friday, May 23rd. The stock was sold at an average price of $353.64, for a total transaction of $12,294,648.24. Following the sale, the chief technology officer owned 70,889 shares of the company's stock, valued at approximately $25,069,185.96. The trade was a 32.91% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Herald Y. Chen sold 171,420 shares of AppLovin stock in a transaction that occurred on Tuesday, May 13th. The shares were sold at an average price of $373.77, for a total value of $64,071,653.40. Following the sale, the director directly owned 221,209 shares in the company, valued at approximately $82,681,287.93. This trade represents a 43.66% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 1,212,968 shares of company stock valued at $455,062,980. Corporate insiders own 13.66% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Fuller & Thaler Asset Management Inc. purchased a new position in shares of AppLovin during the 4th quarter valued at $25,000. Atala Financial Inc acquired a new stake in shares of AppLovin in the 1st quarter valued at $26,000. Hilltop National Bank acquired a new stake in shares of AppLovin in the 2nd quarter valued at $26,000. Alpine Bank Wealth Management acquired a new stake in shares of AppLovin in the 1st quarter valued at $27,000. Finally, ORG Wealth Partners LLC acquired a new stake in shares of AppLovin in the 1st quarter valued at $29,000. Institutional investors and hedge funds own 41.85% of the company's stock.

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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