AppLovin (NASDAQ:APP) Shares Up 6.2% - Here's Why

AppLovin Co. (NASDAQ:APP - Get Free Report)'s stock price shot up 6.2% on Tuesday . The stock traded as high as $371.65 and last traded at $369.32. 3,342,429 shares changed hands during trading, a decline of 44% from the average session volume of 5,995,149 shares. The stock had previously closed at $347.90.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on APP. Needham & Company LLC reissued a "hold" rating on shares of AppLovin in a research report on Monday, April 21st. UBS Group boosted their target price on shares of AppLovin from $450.00 to $475.00 and gave the stock a "buy" rating in a research report on Thursday, May 8th. JPMorgan Chase & Co. boosted their target price on shares of AppLovin from $270.00 to $355.00 and gave the stock a "neutral" rating in a research report on Thursday, May 8th. Citigroup boosted their target price on shares of AppLovin from $460.00 to $600.00 and gave the stock a "buy" rating in a research report on Wednesday, February 19th. Finally, The Goldman Sachs Group boosted their target price on shares of AppLovin from $335.00 to $435.00 and gave the stock a "neutral" rating in a research report on Friday, May 9th. One research analyst has rated the stock with a sell rating, three have issued a hold rating, seventeen have given a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat, AppLovin presently has a consensus rating of "Moderate Buy" and a consensus target price of $433.85.

AppLovin Price Performance

The stock's fifty day moving average is $280.48 and its 200-day moving average is $314.77. The stock has a market capitalization of $123.89 billion, a PE ratio of 80.32, a P/E/G ratio of 3.02 and a beta of 2.39. The company has a debt-to-equity ratio of 3.70, a current ratio of 2.41 and a quick ratio of 2.41.

AppLovin (NASDAQ:APP - Get Free Report) last posted its quarterly earnings data 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. The company had revenue of $1.48 billion during the quarter, compared to analysts' expectations of $1.38 billion. AppLovin had a net margin of 33.54% and a return on equity of 188.55%. The firm's revenue for the quarter was up 40.3% on a year-over-year basis. During the same period in the prior year, the business posted $0.67 earnings per share. As a group, equities analysts predict that AppLovin Co. will post 6.87 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director Herald Y. Chen sold 200,000 shares of the stock in a transaction dated Friday, February 28th. The shares were sold at an average price of $324.65, for a total value of $64,930,000.00. Following the completion of the sale, the director now directly owns 621,209 shares in the company, valued at $201,675,501.85. This represents a 24.35% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Craig Scott Billings sold 12,000 shares of the stock in a transaction dated Monday, May 12th. The shares were sold at an average price of $353.12, for a total transaction of $4,237,440.00. Following the completion of the sale, the director now owns 2,987 shares of the company's stock, valued at $1,054,769.44. This trade represents a 80.07% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 318,900 shares of company stock worth $110,639,281. Company insiders own 14.69% of the company's stock.

Institutional Investors Weigh In On AppLovin

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Gordian Capital Singapore Pte Ltd acquired a new stake in AppLovin during the first quarter worth about $54,000. Canada Pension Plan Investment Board increased its position in AppLovin by 564.4% during the first quarter. Canada Pension Plan Investment Board now owns 139,652 shares of the company's stock worth $37,004,000 after purchasing an additional 118,633 shares during the last quarter. Parnassus Investments LLC acquired a new stake in AppLovin during the first quarter worth about $18,136,000. WPG Advisers LLC acquired a new stake in AppLovin during the first quarter worth about $722,000. Finally, Next Century Growth Investors LLC increased its position in AppLovin by 48.5% during the first quarter. Next Century Growth Investors LLC now owns 12,735 shares of the company's stock worth $3,374,000 after purchasing an additional 4,162 shares during 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.