4,966 Shares in AppLovin Corporation $APP Acquired by Plato Investment Management Ltd

Key Points

• Plato Investment Management acquired 4,966 AppLovin shares during the second quarter, valued at approximately $2.54 million. Hedge funds and other institutions collectively own 41.85% of the company.
• AppLovin reported $1.92 billion in quarterly revenue, up 52.8% year over year, but narrowly missed revenue expectations of $1.94 billion. The stock opened at $315.44, near its 52-week low of $303.17.
• Analyst sentiment remains mixed: the consensus rating is “Moderate Buy” with a $565.91 average price target, while JPMorgan and Bank of America remain neutral amid concerns about growth durability and competition. Insiders have sold roughly $197.3 million of stock over the past 90 days.

Plato Investment Management Ltd bought a new stake in AppLovin Corporation (NASDAQ:APP - Free Report) during the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor bought 4,966 shares of the company's stock, valued at approximately $2,544,000.

Several other institutional investors have also recently made changes to their positions in the company. Verdence Capital Advisors LLC raised its stake in AppLovin by 5.7% in the 4th quarter. Verdence Capital Advisors LLC now owns 333 shares of the company's stock valued at $224,000 after purchasing an additional 18 shares during the last quarter. Finivi Inc. increased its stake in AppLovin by 3.2% during the fourth quarter. Finivi Inc. now owns 711 shares of the company's stock worth $479,000 after purchasing an additional 22 shares during the period. Revolve Wealth Partners LLC raised its stake in shares of AppLovin by 2.8% in the second quarter. Revolve Wealth Partners LLC now owns 851 shares of the company's stock valued at $438,000 after acquiring an additional 23 shares in the last quarter. Alta Wealth Advisors LLC lifted its stake in AppLovin by 0.6% in the fourth quarter. Alta Wealth Advisors LLC now owns 3,925 shares of the company's stock worth $2,645,000 after acquiring an additional 24 shares during the last quarter. Finally, Washington Trust Advisors Inc. boosted its position in shares of AppLovin by 160.0% during the 4th quarter. Washington Trust Advisors Inc. now owns 39 shares of the company's stock worth $27,000 after acquiring an additional 24 shares in the last quarter. 41.85% of the stock is owned by hedge funds and other institutional investors.

AppLovin News Summary

Here are the key news stories impacting AppLovin this week:

• Positive Sentiment: Some analysts remain constructive on AppLovin’s valuation and financial profile. Phillip Securities upgraded the stock, while a recent analysis argued that the shares may be mispriced relative to the company’s fundamentals after reaching a 52-week low. AppLovin Upgraded at Phillip Securities AppLovin at 52-Week Low
• Neutral Sentiment: JPMorgan initiated coverage with a Neutral rating, recognizing AppLovin’s strong profitability and balance-sheet profile while questioning whether its rapid mobile-gaming advertising growth can continue. Bank of America also rates the shares Neutral. JPMorgan Initiates AppLovin Coverage Bank of America Neutral Rating
• Negative Sentiment: AppLovin’s latest quarterly results fell slightly short of revenue expectations, and adjusted EBITDA also missed estimates. Management attributed the weakness to slower-than-usual improvements in its core gaming advertising models, intensifying concerns about earnings-growth durability. AppLovin Q2 Earnings Call
• Negative Sentiment: Competitive risks from Unity and Meta, as well as questions about whether Google could challenge AppLovin’s advertising position, are weighing on the investment narrative. BTIG issued a pessimistic forecast, and another analyst downgrade previously contributed to selling pressure. BTIG Forecast for AppLovin AppLovin and Google Competition
• Negative Sentiment: Quant fund Renaissance Technologies exited its AppLovin position, a potential additional overhang for sentiment even though the move reflects portfolio management rather than a fundamental company announcement. Renaissance Changes Holdings

AppLovin Stock Performance

AppLovin stock opened at $315.44 on Monday. AppLovin Corporation has a 52-week low of $303.17 and a 52-week high of $745.61. The firm has a market capitalization of $105.56 billion, a price-to-earnings ratio of 24.25, a PEG ratio of 0.63 and a beta of 2.54. The firm has a 50-day moving average price of $447.84 and a two-hundred day moving average price of $455.50. The company has a quick ratio of 4.30, a current ratio of 4.30 and a debt-to-equity ratio of 1.11.

AppLovin (NASDAQ:APP - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The company reported $3.76 EPS for the quarter, hitting analysts' consensus estimates of $3.76. The company had revenue of $1.92 billion for the quarter, compared to the consensus estimate of $1.94 billion. AppLovin had a net margin of 64.58% and a return on equity of 193.10%. AppLovin's revenue was up 52.8% on a year-over-year basis. During the same period in the previous year, the firm earned $2.39 EPS. Sell-side analysts expect that AppLovin Corporation will post 15.57 earnings per share for the current year.

Insider Transactions at AppLovin

In related news, CEO Arash Adam Foroughi sold 33,042 shares of the firm's stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $486.95, for a total transaction of $16,089,801.90. Following the completion of the sale, the chief executive officer directly owned 2,369,351 shares in the company, valued at approximately $1,153,755,469.45. This trade represents a 1.38% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CFO Matthew Stumpf sold 9,052 shares of the business's stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $600.00, for a total transaction of $5,431,200.00. Following the transaction, the chief financial officer owned 177,450 shares in the company, valued at approximately $106,470,000. This represents a 4.85% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 393,000 shares of company stock worth $197,297,363. 12.81% of the stock is currently owned by insiders.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on APP. Bank of America restated a "neutral" rating and set a $400.00 target price (down from $430.00) on shares of AppLovin in a research report on Tuesday, August 11th. Citigroup reduced their price target on shares of AppLovin from $710.00 to $650.00 and set a "buy" rating on the stock in a report on Friday, August 7th. JPMorgan Chase & Co. upped their price objective on shares of AppLovin from $500.00 to $515.00 and gave the company a "neutral" rating in a research note on Thursday, May 7th. Wells Fargo & Company reissued an "equal weight" rating and set a $357.00 price objective (down from $575.00) on shares of AppLovin in a research note on Thursday, August 6th. Finally, Phillip Securities upgraded AppLovin from a "moderate buy" rating to a "strong-buy" rating in a report on Tuesday, August 11th. Three research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eight have given a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $565.91.

AppLovin Company Profile

AppLovin Corporation is a Palo Alto–based mobile technology company that provides software and services to help app developers grow and monetize their businesses. The company operates a data-driven advertising and marketing platform that connects app publishers and advertisers, delivering tools for user acquisition, monetization, analytics and creative optimization. AppLovin's technology is integrated into a broad set of mobile applications through software development kits (SDKs) and ad products designed to maximize revenue and engagement for developers.

Key components of AppLovin's offering include an ad mediation and exchange platform that enables publishers to manage and monetize inventory across multiple demand sources, and a user-acquisition platform that helps advertisers target and scale campaigns.

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