AppLovin Corporation $APP Shares Sold by Arrowstreet Capital Limited Partnership

Key Points

• Arrowstreet Capital cut its AppLovin stake by 63.1% in the fourth quarter, selling 594,860 shares and leaving it with 347,466 shares valued at about $234.1 million.
• Other institutional activity remained active: Vanguard, State Street, Norges Bank, and others either added to or initiated large positions, and institutional investors still own 41.85% of AppLovin shares.
• AppLovin reported strong quarterly results, with EPS of $3.56 beating estimates and revenue of $1.84 billion topping expectations; analysts currently rate the stock a Moderate Buy with an average price target of $669.62.

Arrowstreet Capital Limited Partnership trimmed its stake in shares of AppLovin Corporation (NASDAQ:APP - Free Report) by 63.1% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 347,466 shares of the company's stock after selling 594,860 shares during the period. Arrowstreet Capital Limited Partnership owned about 0.10% of AppLovin worth $234,132,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently modified their holdings of APP. Vanguard Group Inc. lifted its position in shares of AppLovin by 39.4% during the 3rd quarter. Vanguard Group Inc. now owns 24,954,458 shares of the company's stock valued at $17,930,776,000 after acquiring an additional 7,051,663 shares during the period. State Street Corp raised its position in shares of AppLovin by 111.1% during the 3rd quarter. State Street Corp now owns 11,852,466 shares of the company's stock worth $8,516,471,000 after purchasing an additional 6,237,051 shares during the last quarter. Norges Bank acquired a new position in shares of AppLovin during the 4th quarter worth approximately $2,040,321,000. Capital Research Global Investors acquired a new position in shares of AppLovin during the 3rd quarter worth approximately $743,899,000. Finally, Northern Trust Corp raised its position in shares of AppLovin by 46.8% during the 3rd quarter. Northern Trust Corp now owns 2,374,460 shares of the company's stock worth $1,706,144,000 after purchasing an additional 756,660 shares during the last quarter. 41.85% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In related news, CTO Vasily Shikin sold 8,112 shares of the company's stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $483.67, for a total transaction of $3,923,531.04. Following the completion of the sale, the chief technology officer directly owned 18,805 shares of the company's stock, valued at approximately $9,095,414.35. This represents a 30.14% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Matthew Stumpf sold 9,052 shares of the company's stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $600.00, for a total transaction of $5,431,200.00. Following the sale, the chief financial officer directly owned 177,450 shares of the company's stock, valued at approximately $106,470,000. This trade represents a 4.85% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 226,014 shares of company stock worth $113,073,400 in the last quarter. Insiders own 13.66% of the company's stock.

AppLovin Price Performance

Shares of NASDAQ APP opened at $496.77 on Monday. AppLovin Corporation has a 52-week low of $320.00 and a 52-week high of $745.61. The firm has a fifty day moving average of $482.88 and a 200-day moving average of $520.57. The stock has a market capitalization of $166.88 billion, a PE ratio of 42.68, a P/E/G ratio of 0.81 and a beta of 2.45. The company has a quick ratio of 3.24, a current ratio of 3.24 and a debt-to-equity ratio of 1.49.

AppLovin (NASDAQ:APP - Get Free Report) last announced its quarterly earnings data on Wednesday, May 6th. The company reported $3.56 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.44 by $0.12. AppLovin had a net margin of 64.29% and a return on equity of 219.37%. The company had revenue of $1.84 billion during the quarter, compared to analysts' expectations of $1.77 billion. During the same period in the previous year, the company earned $1.67 EPS. The business's quarterly revenue was up 58.9% compared to the same quarter last year. On average, analysts anticipate that AppLovin Corporation will post 15.86 EPS for the current year.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on APP. Weiss Ratings downgraded AppLovin from a "hold (c+)" rating to a "hold (c)" rating in a report on Thursday, May 7th. Wells Fargo & Company boosted their price target on AppLovin from $560.00 to $571.00 and gave the company an "overweight" rating in a report on Thursday, May 7th. UBS Group cut their price target on AppLovin from $740.00 to $716.00 and set a "buy" rating for the company in a report on Thursday, May 7th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and issued a $660.00 price target on shares of AppLovin in a report on Thursday, May 7th. Finally, Wedbush reiterated an "outperform" rating and issued a $640.00 price target on shares of AppLovin in a report on Thursday, May 7th. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $669.62.

More AppLovin News

Here are the key news stories impacting AppLovin this week:

• Negative Sentiment: CEO Arash Adam Foroughi sold additional AppLovin shares on June 10, 11, and 12, including several transactions worth millions of dollars, which may pressure investor confidence in the near term. SEC filing
• Neutral Sentiment: Recent commentary from analysts and financial media remained constructive overall, with one piece arguing AppLovin’s selloff looks detached from fundamentals and highlighting strong Q1 revenue, EBITDA, and free cash flow growth. Article
• Neutral Sentiment: Separately, coverage noted that brokers still generally view AppLovin as an attractive stock, though these recommendations are often considered lagging indicators and may not move the shares much on their own. Article

AppLovin 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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