Capital International Investors Boosts Holdings in AppLovin Corporation $APP

Key Points

• Capital International Investors increased its AppLovin stake by 20.2% in the fourth quarter, buying 164,653 additional shares and bringing its total holding to 981,214 shares valued at about $661.2 million.
• AppLovin’s latest quarterly results topped expectations, with EPS of $3.56 versus $3.44 expected and revenue of $1.84 billion versus $1.77 billion expected. Revenue jumped 58.9% year over year.
• Analysts remain broadly positive on the stock, with a Moderate Buy consensus and an average price target of $664.35, while several firms recently raised or reaffirmed their bullish ratings.

Capital International Investors raised its holdings in AppLovin Corporation (NASDAQ:APP - Free Report) by 20.2% during the 4th quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 981,214 shares of the company's stock after purchasing an additional 164,653 shares during the quarter. Capital International Investors owned 0.29% of AppLovin worth $661,225,000 at the end of the most recent reporting period.

Several other hedge funds have also modified their holdings of the company. Los Angeles Capital Management LLC boosted its stake in shares of AppLovin by 7.8% during the 4th quarter. Los Angeles Capital Management LLC now owns 153,800 shares of the company's stock worth $95,451,000 after acquiring an additional 11,122 shares in the last quarter. Telemark Asset Management LLC acquired a new position in shares of AppLovin during the 4th quarter worth about $13,476,000. DB&C Advisors LLC acquired a new position in shares of AppLovin during the 4th quarter worth about $1,676,000. XML Financial LLC raised its position in shares of AppLovin by 76.7% during the 4th quarter. XML Financial LLC now owns 698 shares of the company's stock worth $470,000 after purchasing an additional 303 shares during the last quarter. Finally, Nemes Rush Group LLC raised its position in shares of AppLovin by 2,556.3% during the 4th quarter. Nemes Rush Group LLC now owns 425 shares of the company's stock worth $286,000 after purchasing an additional 409 shares during the last quarter. 41.85% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several research analysts recently weighed in on the stock. Scotiabank upped their price target on shares of AppLovin from $750.00 to $775.00 and gave the stock an "outperform" rating in a research report on Thursday, February 12th. Benchmark reissued a "buy" rating on shares of AppLovin in a research note on Friday, March 6th. JPMorgan Chase & Co. raised their price objective on AppLovin from $500.00 to $515.00 and gave the company a "neutral" rating in a report on Thursday, May 7th. Needham & Company LLC reaffirmed a "buy" rating and set a $700.00 target price on shares of AppLovin in a research note on Thursday, May 28th. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and set a $660.00 target price on shares of AppLovin in a report on Thursday, May 7th. One analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat, AppLovin currently has a consensus rating of "Moderate Buy" and a consensus price target of $664.35.

AppLovin Price Performance

APP stock opened at $557.20 on Monday. The company has a market cap of $187.19 billion, a price-to-earnings ratio of 47.87, a PEG ratio of 0.91 and a beta of 2.45. The company has a current ratio of 3.24, a quick ratio of 3.24 and a debt-to-equity ratio of 1.49. AppLovin Corporation has a 12 month low of $320.00 and a 12 month high of $745.61. The firm has a 50-day moving average of $470.43 and a two-hundred day moving average of $521.30.

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

Insider Buying and Selling at AppLovin

In other news, CTO Vasily Shikin sold 2,889 shares of the firm's stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $488.90, for a total transaction of $1,412,432.10. Following the completion of the sale, the chief technology officer owned 17,945 shares in the company, valued at $8,773,310.50. This trade represents a 13.87% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Arash Adam Foroughi sold 40,704 shares of the firm's stock in a transaction that occurred on Thursday, March 12th. The stock was sold at an average price of $459.85, for a total transaction of $18,717,734.40. Following the sale, the chief executive officer owned 2,430,414 shares of the company's stock, valued at $1,117,625,877.90. This represents a 1.65% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 467,092 shares of company stock worth $220,268,340. Insiders own 13.66% of the company's stock.

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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