Capital Impact Advisors LLC Acquires Shares of 33,804 AppLovin Corporation $APP

Key Points

• Capital Impact Advisors LLC acquired 33,804 shares of AppLovin Corporation, valued at approximately $8,957,000, making it the firm’s 11th largest holding.
• In the first quarter, several institutional investors increased their stakes in AppLovin, with Vanguard Group Inc. raising its position by 7.3% to over $4.7 billion.
• AppLovin recently reported earnings of $2.26 per share, beating analysts' estimates, but its revenue fell short of expectations despite a 77.1% year-over-year increase.

Capital Impact Advisors LLC bought a new stake in AppLovin Corporation (NASDAQ:APP - Free Report) during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm bought 33,804 shares of the company's stock, valued at approximately $8,957,000. AppLovin makes up 3.4% of Capital Impact Advisors LLC's portfolio, making the stock its 11th biggest holding.

A number of other institutional investors have also recently added to or reduced their stakes in the stock. Vanguard Group Inc. raised its position in AppLovin by 7.3% in the first quarter. Vanguard Group Inc. now owns 17,830,675 shares of the company's stock valued at $4,724,594,000 after purchasing an additional 1,213,536 shares during the period. Price T Rowe Associates Inc. MD boosted its position in shares of AppLovin by 36.7% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 6,588,483 shares of the company's stock valued at $1,745,752,000 after purchasing an additional 1,769,400 shares during the period. Baillie Gifford & Co. boosted its position in shares of AppLovin by 29.0% in the 1st quarter. Baillie Gifford & Co. now owns 5,270,355 shares of the company's stock valued at $1,396,486,000 after purchasing an additional 1,185,859 shares during the period. Invesco Ltd. lifted its position in AppLovin by 32.9% during the 1st quarter. Invesco Ltd. now owns 4,011,306 shares of the company's stock worth $1,062,876,000 after acquiring an additional 992,316 shares during the period. Finally, Kensico Capital Management Corp lifted its holdings in shares of AppLovin by 12.9% in the 1st quarter. Kensico Capital Management Corp now owns 2,879,000 shares of the company's stock valued at $762,849,000 after buying an additional 328,000 shares during the period. Hedge funds and other institutional investors own 41.85% of the company's stock.

AppLovin Price Performance

APP opened at $558.17 on Wednesday. The stock has a fifty day moving average of $410.43 and a 200-day moving average of $349.45. The firm has a market capitalization of $188.80 billion, a P/E ratio of 79.29, a PEG ratio of 3.06 and a beta of 2.44. AppLovin Corporation has a 12-month low of $85.23 and a 12-month high of $559.24. The company has a quick ratio of 2.74, a current ratio of 2.74 and a debt-to-equity ratio of 3.01.

AppLovin (NASDAQ:APP - Get Free Report) last released 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 return on equity of 252.67% and a net margin of 45.72%.The company had revenue of $1.26 billion during the quarter, compared to analyst estimates of $1.37 billion. During the same quarter in the prior year, the company earned $0.89 earnings per share. The company's revenue for the quarter was up 77.1% on a year-over-year basis. Equities analysts forecast that AppLovin Corporation will post 6.87 EPS for the current fiscal year.

Insider Activity

In other AppLovin news, CTO Vasily Shikin sold 30,000 shares of the stock in a transaction on Friday, August 22nd. The shares were sold at an average price of $437.57, for a total transaction of $13,127,100.00. Following the transaction, the chief technology officer directly owned 3,360,104 shares of the company's stock, valued at $1,470,280,707.28. This represents a 0.88% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Victoria Valenzuela sold 35,000 shares of the stock in a transaction dated Thursday, September 4th. The shares were sold at an average price of $502.23, for a total transaction of $17,578,050.00. Following the completion of the sale, the insider owned 269,955 shares of the company's stock, valued at approximately $135,579,499.65. The trade was a 11.48% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 1,156,788 shares of company stock valued at $514,863,333. Corporate insiders own 13.66% of the company's stock.

Analysts Set New Price Targets

Several equities analysts recently weighed in on APP shares. Zacks Research raised AppLovin to a "strong-buy" rating in a research note on Friday, August 8th. Scotiabank reissued an "outperform" rating on shares of AppLovin in a research report on Thursday, August 28th. Jefferies Financial Group boosted their price objective on AppLovin from $560.00 to $615.00 and gave the stock a "buy" rating in a research note on Friday, September 5th. Morgan Stanley boosted their price target on AppLovin from $460.00 to $480.00 and gave the stock an "overweight" rating in a research note on Thursday, August 7th. Finally, JPMorgan Chase & Co. boosted their price objective on AppLovin from $400.00 to $425.00 and gave the company a "neutral" rating in a report on Thursday, August 7th. Two investment analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, AppLovin has a consensus rating of "Moderate Buy" and an average 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.

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