AppLovin Corporation $APP Shares Acquired by Kensico Capital Management Corp

Key Points

• Kensico Capital Management Corp increased its holdings in AppLovin Corporation by 12.9%, now making it the largest position in their portfolio at approximately $762 million.
• AppLovin's stock experienced a trading rise of 2.6%, with a 12-month high of $525.15 and a market capitalization of $169.11 billion.
• Insiders sold a total of 1,122,938 shares of AppLovin stock worth nearly $498 million over the last 90 days, reflecting a significant insider activity.

Kensico Capital Management Corp boosted its stake in shares of AppLovin Corporation (NASDAQ:APP - Free Report) by 12.9% in the first quarter, according to its most recent disclosure with the SEC. The firm owned 2,879,000 shares of the company's stock after acquiring an additional 328,000 shares during the period. AppLovin comprises about 17.2% of Kensico Capital Management Corp's holdings, making the stock its biggest holding. Kensico Capital Management Corp owned 0.85% of AppLovin worth $762,849,000 as of its most recent filing with the SEC.

Several other hedge funds and other institutional investors have also recently modified their holdings of the business. Revolve Wealth Partners LLC purchased a new stake in shares of AppLovin during the 4th quarter worth approximately $294,000. Bison Wealth LLC purchased a new position in shares of AppLovin during the 4th quarter valued at approximately $239,000. Benjamin Edwards Inc. lifted its stake in AppLovin by 11.8% during the fourth quarter. Benjamin Edwards Inc. now owns 3,117 shares of the company's stock worth $1,009,000 after purchasing an additional 329 shares during the last quarter. BOKF NA increased its position in AppLovin by 22.3% in the fourth quarter. BOKF NA now owns 9,223 shares of the company's stock worth $2,937,000 after buying an additional 1,680 shares during the period. Finally, Concentric Capital Strategies LP acquired a new position in AppLovin during the fourth quarter worth about $2,168,000. 41.85% of the stock is owned by hedge funds and other institutional investors.

AppLovin Price Performance

Shares of AppLovin stock traded up $56.80 during trading on Monday, reaching $547.04. 16,469,639 shares of the stock traded hands, compared to its average volume of 7,058,876. The business has a fifty day simple moving average of $402.06 and a two-hundred day simple moving average of $347.07. The company has a debt-to-equity ratio of 3.01, a current ratio of 2.74 and a quick ratio of 2.74. AppLovin Corporation has a 52-week low of $84.73 and a 52-week high of $555.50. The company has a market capitalization of $185.04 billion, a price-to-earnings ratio of 77.70, a P/E/G ratio of 2.74 and a beta of 2.44.

AppLovin (NASDAQ:APP - Get Free Report) last posted 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. AppLovin had a net margin of 45.72% and a return on equity of 252.67%. The company had revenue of $1.26 billion during the quarter, compared to the consensus estimate of $1.37 billion. During the same period in the previous year, the firm posted $0.89 earnings per share. The firm's quarterly revenue was up 77.1% on a year-over-year basis. Sell-side analysts expect that AppLovin Corporation will post 6.87 EPS for the current year.

Insiders Place Their Bets

In other AppLovin news, CEO Arash Adam Foroughi sold 90,000 shares of the business's stock in a transaction that occurred on Thursday, August 21st. The shares were sold at an average price of $421.04, for a total transaction of $37,893,600.00. Following the completion of the sale, the chief executive officer directly owned 2,620,054 shares in the company, valued at $1,103,147,536.16. The trade was a 3.32% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Eduardo Vivas sold 125,000 shares of the stock in a transaction on Tuesday, August 12th. The shares were sold at an average price of $466.00, for a total transaction of $58,250,000.00. Following the transaction, the director owned 7,283,292 shares in the company, valued at $3,394,014,072. This trade represents a 1.69% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 1,158,288 shares of company stock valued at $515,437,023. 13.66% of the stock is currently owned by insiders.

Analysts Set New Price Targets

A number of brokerages recently weighed in on APP. Morgan Stanley raised their price objective on AppLovin from $460.00 to $480.00 and gave the company an "overweight" rating in a research note on Thursday, August 7th. Wells Fargo & Company upped their price target on AppLovin from $480.00 to $491.00 and gave the company an "overweight" rating in a research note on Thursday, August 21st. Wall Street Zen cut AppLovin from a "buy" rating to a "hold" rating in a report on Saturday, August 9th. Wedbush reiterated an "outperform" rating and set a $620.00 price objective on shares of AppLovin in a report on Thursday, August 7th. Finally, JPMorgan Chase & Co. lifted their target price on AppLovin from $400.00 to $425.00 and gave the stock a "neutral" rating in a research note on Thursday, August 7th. Two research analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, AppLovin currently has an average rating of "Moderate Buy" and a consensus price target of $482.86.

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.