AppLovin Corporation $APP Stock Sold by Smith Group Asset Management LLC

Key Points

• Smith Group Asset Management cut its AppLovin position by 96.9% in the third quarter, selling 103,605 shares and retaining 3,267 shares valued at approximately $949,000.
• AppLovin shares opened at $259.97, near their 52-week low of $255.46 and well below the $738.01 high. Despite the decline, institutional investors own 41.85% of the company.
• Analysts maintain a broadly positive view, with a consensus “Moderate Buy” rating and average price target of $491.64, although several firms recently lowered their targets.

Smith Group Asset Management LLC reduced its position in AppLovin Corporation (NASDAQ:APP - Free Report) by 96.9% in the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 3,267 shares of the company's stock after selling 103,605 shares during the quarter. Smith Group Asset Management LLC's holdings in AppLovin were worth $949,000 at the end of the most recent quarter.

A number of other institutional investors have also recently bought and sold shares of the business. State Street Corp raised its stake in shares of AppLovin by 28.3% in the 2nd quarter. State Street Corp now owns 15,095,667 shares of the company's stock valued at $7,777,741,000 after buying an additional 3,328,338 shares in the last quarter. WCM Investment Management LLC lifted its holdings in shares of AppLovin by 5.2% during the 1st quarter. WCM Investment Management LLC now owns 5,001,600 shares of the company's stock worth $1,860,995,000 after acquiring an additional 245,290 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in shares of AppLovin by 7.5% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,735,471 shares of the company's stock valued at $894,167,000 after acquiring an additional 121,605 shares in the last quarter. Bank of New York Mellon Corp acquired a new stake in shares of AppLovin during the 2nd quarter valued at about $730,015,000. Finally, Amundi boosted its position in shares of AppLovin by 19.5% during the 2nd quarter. Amundi now owns 1,332,633 shares of the company's stock valued at $686,612,000 after acquiring an additional 217,214 shares in the last quarter. Institutional investors and hedge funds own 41.85% of the company's stock.

AppLovin Stock Down 1.1%

Shares of NASDAQ:APP opened at $259.97 on Thursday. AppLovin Corporation has a 52 week low of $255.46 and a 52 week high of $738.01. The company has a debt-to-equity ratio of 1.11, a quick ratio of 4.30 and a current ratio of 4.30. The company's fifty day moving average is $296.92 and its 200-day moving average is $421.69. The company has a market capitalization of $87.00 billion, a PE ratio of 19.98, a P/E/G ratio of 0.54 and a beta of 2.56.

AppLovin (NASDAQ:APP - Get Free Report) last posted its earnings results on Wednesday, August 5th. The company reported $3.76 earnings per share for the quarter, hitting the consensus estimate of $3.76. The business had revenue of $1.92 billion for the quarter, compared to analyst estimates of $1.94 billion. AppLovin had a net margin of 64.58% and a return on equity of 193.10%. The firm's quarterly revenue was up 52.8% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $2.39 EPS. Equities research analysts predict that AppLovin Corporation will post 15.67 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

A number of research firms recently weighed in on APP. BTIG Research lowered their target price on shares of AppLovin from $408.00 to $396.00 and set a "buy" rating on the stock in a research note on Tuesday, September 8th. Wedbush cut their price target on shares of AppLovin from $610.00 to $560.00 and set an "outperform" rating for the company in a research note on Wednesday, October 14th. Oppenheimer decreased their price objective on AppLovin from $560.00 to $490.00 and set an "outperform" rating on the stock in a report on Monday, October 12th. HSBC decreased their price objective on AppLovin from $450.00 to $409.00 and set a "buy" rating on the stock in a report on Monday, October 5th. Finally, UBS Group lowered their price objective on AppLovin from $790.00 to $414.00 and set a "buy" rating on the stock in a research note on Wednesday. Three investment analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating and eight have assigned a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $491.64.

Key Headlines Impacting AppLovin

Here are the key news stories impacting AppLovin this week:

• Positive Sentiment: RBC remains bullish despite a lower target. Royal Bank of Canada cut its price target from $575 to $500 but maintained an “Outperform” rating. The revised target still implies roughly 92% upside from recent levels, suggesting the bank views the selloff as excessive if AppLovin’s fundamentals stabilize. RBC Cut Its AppLovin Target to $500
• Neutral Sentiment: Profitability is a major support, but sustainability is uncertain. AppLovin’s AI advertising platform has lifted its adjusted EBITDA margin to approximately 84%. However, increasing competition, higher costs and a potentially slower pace of model improvement could make it difficult to maintain those margins. Can AppLovin’s 84% EBITDA Margin Sustain Growth?
• Neutral Sentiment: Third-quarter results are the next key catalyst. Investors will focus on advertising growth, progress in e-commerce and evidence that AppLovin’s AI models continue to improve. Analysts expect earnings growth, but recent commentary indicates the company may lack the factors typically associated with a likely earnings beat. AppLovin Earnings Expected to Grow
• Negative Sentiment: Multiple law firms are promoting a securities class action. The lawsuit alleges AppLovin overstated the reliability and compounding benefits of its AI advertising models before a July analyst report and the company’s August 5 results triggered a sharp stock decline. The allegations have not been proven, but the litigation adds reputational, financial and headline risk; investors covered by the proposed class period face a November 16 lead-plaintiff deadline. AppLovin Securities Class Action Notice

AppLovin Profile

AppLovin Corporation is a technology company that provides software and services designed to help mobile application developers grow, monetize and operate their businesses. Its platform supports user acquisition, advertising, mediation, analytics and other functions across the mobile app ecosystem.

The company's principal products include AppDiscovery, which helps developers market their applications and acquire users; MAX, an in-app bidding and monetization platform; and its AXON technology, an artificial intelligence-powered engine intended to improve advertising performance and match users with relevant applications and content.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.