Capital World Investors Increases Stock Position in AppLovin Corporation $APP

Key Points

• Capital World Investors increased its Q3 stake in AppLovin by 0.3% to 2,635,188 shares — about 0.78% of the company worth roughly $1.89 billion.
• Other institutions piled in as well: Vanguard raised its stake 39.4% to 24,954,458 shares (~$17.93B), Norges Bank and Rakuten initiated large positions, and total institutional ownership is about 41.85%.
• AppLovin beat estimates with Q results of $3.24 EPS (vs. $2.89) and $1.66B revenue (up 66%), and analysts hold a consensus "Moderate Buy" with an average price target of $654.50.

Capital World Investors increased its position in shares of AppLovin Corporation (NASDAQ:APP - Free Report) by 0.3% during the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 2,635,188 shares of the company's stock after buying an additional 8,864 shares during the period. Capital World Investors owned about 0.78% of AppLovin worth $1,893,477,000 at the end of the most recent reporting period.

Other institutional investors have also recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its stake in shares of AppLovin by 39.4% during the third quarter. Vanguard Group Inc. now owns 24,954,458 shares of the company's stock valued at $17,930,776,000 after acquiring an additional 7,051,663 shares in the last quarter. Norges Bank acquired a new stake in AppLovin during the 2nd quarter valued at approximately $951,541,000. Rakuten Investment Management Inc. purchased a new stake in AppLovin during the 3rd quarter worth approximately $1,456,108,000. Jennison Associates LLC raised its position in shares of AppLovin by 55.2% in the 3rd quarter. Jennison Associates LLC now owns 3,886,150 shares of the company's stock valued at $2,792,355,000 after purchasing an additional 1,381,970 shares in the last quarter. Finally, Bank of New York Mellon Corp boosted its stake in shares of AppLovin by 51.0% during the 3rd quarter. Bank of New York Mellon Corp now owns 1,493,494 shares of the company's stock valued at $1,073,135,000 after buying an additional 504,341 shares during the last quarter. Institutional investors and hedge funds own 41.85% of the company's stock.

Insider Activity at AppLovin

In related news, insider Victoria Valenzuela sold 7,609 shares of the stock in a transaction that occurred on Thursday, December 18th. The shares were sold at an average price of $657.13, for a total transaction of $5,000,102.17. Following the completion of the sale, the insider directly owned 277,110 shares of the company's stock, valued at $182,097,294.30. This represents a 2.67% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 13.66% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on the company. Scotiabank upped their price objective on AppLovin from $750.00 to $775.00 and gave the company an "outperform" rating in a research note on Thursday, February 12th. The Goldman Sachs Group decreased their price objective on shares of AppLovin from $710.00 to $585.00 and set a "neutral" rating for the company in a report on Thursday, February 12th. Wedbush lifted their price target on shares of AppLovin from $465.00 to $640.00 and gave the company an "outperform" rating in a report on Thursday, February 12th. Evercore reaffirmed a "buy" rating on shares of AppLovin in a report on Friday, January 30th. Finally, Morgan Stanley set a $720.00 price target on shares of AppLovin in a report on Thursday, February 12th. Twenty-one research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat, AppLovin currently has a consensus rating of "Moderate Buy" and an average price target of $654.50.

AppLovin Stock Performance

APP opened at $517.23 on Tuesday. The business has a 50 day moving average price of $510.56 and a two-hundred day moving average price of $574.66. The company has a debt-to-equity ratio of 1.65, a current ratio of 3.32 and a quick ratio of 3.32. The company has a market capitalization of $174.45 billion, a price-to-earnings ratio of 53.05, a price-to-earnings-growth ratio of 1.03 and a beta of 2.51. AppLovin Corporation has a 1-year low of $200.50 and a 1-year high of $745.61.

AppLovin (NASDAQ:APP - Get Free Report) last posted its quarterly earnings data on Wednesday, February 11th. The company reported $3.24 EPS for the quarter, topping analysts' consensus estimates of $2.89 by $0.35. AppLovin had a return on equity of 245.64% and a net margin of 57.42%.The company had revenue of $1.66 billion for the quarter, compared to the consensus estimate of $1.61 billion. During the same quarter in the previous year, the business earned $1.73 EPS. The company's quarterly revenue was up 66.0% compared to the same quarter last year. Research analysts predict that AppLovin Corporation will post 6.87 EPS for the current fiscal year.

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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