Baker Avenue Asset Management LP Sells 5,285 Shares of AppLovin Corporation $APP

Key Points

• Baker Avenue Asset Management reduced its AppLovin position by 3.9%, selling 5,285 shares and retaining 130,016 shares valued at approximately $67 million.
• AppLovin insiders sold roughly 393,000 shares worth $197.3 million over the past 90 days, while institutional investors own 41.85% of the company.
• The stock opened at $315.44, near its 12-month low, despite 52.8% year-over-year revenue growth and a consensus analyst rating of Moderate Buy with a $565.91 price target.

Baker Avenue Asset Management LP trimmed its position in shares of AppLovin Corporation (NASDAQ:APP - Free Report) by 3.9% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 130,016 shares of the company's stock after selling 5,285 shares during the quarter. AppLovin makes up 1.3% of Baker Avenue Asset Management LP's holdings, making the stock its 18th biggest holding. Baker Avenue Asset Management LP's holdings in AppLovin were worth $66,988,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds also recently made changes to their positions in the company. Washington Trust Advisors Inc. increased its position in AppLovin by 160.0% in the 4th quarter. Washington Trust Advisors Inc. now owns 39 shares of the company's stock valued at $27,000 after acquiring an additional 24 shares during the period. Mcguire Capital Advisors Inc. bought a new position in AppLovin during the 4th quarter worth $27,000. Laurel Wealth Advisors LLC bought a new stake in shares of AppLovin in the 4th quarter valued at about $32,000. Osbon Capital Management LLC acquired a new stake in shares of AppLovin in the fourth quarter valued at about $36,000. Finally, Dogwood Wealth Management LLC lifted its stake in shares of AppLovin by 84.4% in the fourth quarter. Dogwood Wealth Management LLC now owns 59 shares of the company's stock worth $40,000 after acquiring an additional 27 shares during the period. Institutional investors and hedge funds own 41.85% of the company's stock.

Insider Activity at AppLovin

In related news, Director Maynard G. Webb, Jr. sold 3,076 shares of the firm's stock in a transaction dated Monday, July 6th. The shares were sold at an average price of $521.29, for a total transaction of $1,603,488.04. Following the completion of the sale, the director owned 120,444 shares in the company, valued at approximately $62,786,252.76. This trade represents a 2.49% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CFO Matthew Stumpf sold 9,052 shares of AppLovin stock in a transaction dated 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 completion of the sale, the chief financial officer directly owned 177,450 shares in the company, valued at approximately $106,470,000. This represents a 4.85% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 393,000 shares of company stock worth $197,297,363. 12.81% of the stock is owned by company insiders.

AppLovin Stock Performance

Shares of APP opened at $315.44 on Friday. The stock has a 50 day moving average of $447.84 and a 200 day moving average of $456.06. The company 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. AppLovin Corporation has a 12 month low of $303.17 and a 12 month high of $745.61. The company has a current ratio of 4.30, a quick ratio of 4.30 and a debt-to-equity ratio of 1.11.

AppLovin (NASDAQ:APP - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. 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 analysts' expectations of $1.94 billion. AppLovin had a return on equity of 193.10% and a net margin of 64.58%.The business's revenue was up 52.8% on a year-over-year basis. During the same quarter in the previous year, the firm earned $2.39 earnings per share. As a group, sell-side analysts forecast that AppLovin Corporation will post 15.57 earnings per share for the current year.

Trending Headlines about AppLovin

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

Analysts Set New Price Targets

A number of brokerages have commented on APP. Morgan Stanley cut their price target on shares of AppLovin from $720.00 to $650.00 and set an "overweight" rating on the stock in a research report on Thursday, August 6th. KeyCorp set a $775.00 price target on shares of AppLovin in a research note on Wednesday, June 10th. Citigroup dropped their price target on AppLovin from $710.00 to $650.00 and set a "buy" rating on the stock in a research note on Friday, August 7th. Phillip Securities upgraded AppLovin from a "moderate buy" rating to a "strong-buy" rating in a report on Tuesday, August 11th. Finally, BTIG Research reduced their price objective on shares of AppLovin from $574.00 to $408.00 and set a "buy" rating for the company in a report on Wednesday. Three investment analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eight have given a Hold rating to the stock. Based on data from MarketBeat.com, AppLovin currently has an average rating of "Moderate Buy" and a consensus 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.

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.

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