Asset Management One Co. Ltd. Grows Stock Holdings in AppLovin Corporation $APP

Key Points

• Asset Management One increased its AppLovin stake by 6.5% in the second quarter, bringing its holdings to 105,909 shares valued at approximately $54.6 million. Institutional investors collectively own 41.85% of the company.
• AppLovin reported quarterly EPS of $3.76, in line with estimates, while revenue of $1.92 billion fell slightly short of expectations but increased 52.8% year over year. The stock opened at $315.44, near its one-year low of $303.17 and well below its one-year high of $745.61.
• Analysts maintain a consensus “Moderate Buy” rating with a $565.91 target price, although several firms recently lowered their targets amid concerns about growth durability and competition. Insiders sold roughly 393,000 shares worth $197.3 million over the past quarter.

Asset Management One Co. Ltd. grew its position in shares of AppLovin Corporation (NASDAQ:APP - Free Report) by 6.5% in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 105,909 shares of the company's stock after acquiring an additional 6,424 shares during the period. Asset Management One Co. Ltd.'s holdings in AppLovin were worth $54,567,000 as of its most recent SEC filing.

A number of other institutional investors also recently modified their holdings of the company. Cassaday & Co Wealth Management LLC bought a new position in AppLovin during the 1st quarter valued at approximately $25,000. Washington Trust Advisors Inc. increased its stake in shares of AppLovin by 160.0% during the fourth quarter. Washington Trust Advisors Inc. now owns 39 shares of the company's stock valued at $27,000 after buying an additional 24 shares during the period. Mcguire Capital Advisors Inc. bought a new position in shares of AppLovin during the fourth quarter valued at approximately $27,000. Pioneer Family Office LLC bought a new position in shares of AppLovin during the second quarter valued at approximately $31,000. Finally, Laurel Wealth Advisors LLC purchased a new stake in AppLovin in the fourth quarter worth $32,000. 41.85% of the stock is currently owned by hedge funds and other institutional investors.

AppLovin Price Performance

APP opened at $315.44 on Friday. The firm has a market cap of $105.56 billion, a PE ratio of 24.25, a P/E/G ratio of 0.63 and a beta of 2.54. The stock has a 50-day moving average price of $447.84 and a 200-day moving average price of $456.06. AppLovin Corporation has a 1 year low of $303.17 and a 1 year high of $745.61. The company has a debt-to-equity ratio of 1.11, a current ratio of 4.30 and a quick ratio of 4.30.

AppLovin (NASDAQ:APP - Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The company reported $3.76 earnings per share for the quarter, meeting analysts' consensus estimates of $3.76. The business had revenue of $1.92 billion during 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%. AppLovin's revenue was up 52.8% compared to the same quarter last year. During the same period last year, the business earned $2.39 EPS. Sell-side analysts predict that AppLovin Corporation will post 15.57 earnings per share for the current fiscal year.

Insider Activity

In related news, CFO Matthew Stumpf sold 9,052 shares of the firm's stock in a transaction that occurred 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 completion of the sale, the chief financial officer owned 177,450 shares of the company's stock, valued at $106,470,000. This trade represents a 4.85% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Arash Adam Foroughi sold 22,544 shares of the business's stock in a transaction that occurred on Friday, June 12th. The stock was sold at an average price of $494.98, for a total transaction of $11,158,829.12. Following the completion of the transaction, the chief executive officer owned 2,327,684 shares of the company's stock, valued at approximately $1,152,157,026.32. The trade was a 0.96% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 393,000 shares of company stock valued at $197,297,363. Company insiders own 12.81% of the company's stock.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on APP. Raymond James Financial started coverage on shares of AppLovin in a report on Monday, June 29th. They issued a "strong-buy" rating and a $640.00 price target on the stock. JPMorgan Chase & Co. raised their target price on shares of AppLovin from $500.00 to $515.00 and gave the stock a "neutral" rating in a research report on Thursday, May 7th. Citigroup cut their target price on shares of AppLovin from $710.00 to $650.00 and set a "buy" rating on the stock in a research note on Friday, August 7th. Bank of America reiterated a "neutral" rating and set a $400.00 price target (down from $430.00) on shares of AppLovin in a research report on Tuesday. Finally, Royal Bank Of Canada decreased their price target on shares of AppLovin from $700.00 to $575.00 and set an "outperform" rating for the company in a research note on Thursday, August 6th. Three research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eight have issued a Hold rating to the company's stock. According to data from MarketBeat, AppLovin currently has a consensus rating of "Moderate Buy" and a consensus target price of $565.91.

More AppLovin News

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 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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