Compass Financial Management LLC Acquires New Holdings in AppLovin Corporation $APP

Key Points

• Compass Financial Management acquired 3,188 AppLovin shares worth approximately $1.64 million in the second quarter. Institutional investors and hedge funds collectively own 41.85% of the company.
• AppLovin reported quarterly revenue of $1.92 billion, up 52.8% year over year, while earnings per share of $3.76 matched analyst expectations. The stock opened at $320.56, well below its 52-week high of $745.61.
• Analysts maintain a generally positive view, with a consensus “Moderate Buy” rating and an average price target of $538.61, despite several recent target reductions. Insiders have sold 271,152 shares worth about $135.3 million over the past three months.

Compass Financial Management LLC purchased a new stake in shares of AppLovin Corporation (NASDAQ:APP - Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm purchased 3,188 shares of the company's stock, valued at approximately $1,643,000.

A number of other hedge funds also recently modified their holdings of the business. Washington Trust Advisors Inc. boosted its position in 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 acquiring an additional 24 shares during the last quarter. Mcguire Capital Advisors Inc. bought a new position in shares of AppLovin in the 4th quarter worth about $27,000. Osbon Capital Management LLC acquired a new position in shares of AppLovin in the 4th quarter valued at about $36,000. Dogwood Wealth Management LLC lifted its stake in shares of AppLovin by 84.4% in the 4th quarter. Dogwood Wealth Management LLC now owns 59 shares of the company's stock valued at $40,000 after purchasing an additional 27 shares during the period. Finally, IMA Advisory Services Inc. lifted its stake in shares of AppLovin by 185.7% in the 4th quarter. IMA Advisory Services Inc. now owns 60 shares of the company's stock valued at $40,000 after purchasing an additional 39 shares during the period. Institutional investors and hedge funds own 41.85% of the company's stock.

AppLovin Stock Performance

Shares of APP opened at $320.56 on Friday. The company has a debt-to-equity ratio of 1.11, a quick ratio of 4.30 and a current ratio of 4.30. The stock has a 50 day moving average price of $394.59 and a two-hundred day moving average price of $440.28. The firm has a market capitalization of $107.28 billion, a P/E ratio of 24.64, a P/E/G ratio of 0.68 and a beta of 2.49. AppLovin Corporation has a 52 week low of $297.50 and a 52 week high of $745.61.

AppLovin (NASDAQ:APP - Get Free Report) last posted its earnings results on Tuesday, August 4th. The company reported $3.76 earnings per share for the quarter, meeting analysts' consensus estimates of $3.76. The company had revenue of $1.92 billion for the quarter, compared to analyst estimates of $1.94 billion. AppLovin had a return on equity of 193.10% and a net margin of 64.58%.The company's revenue for the quarter was up 52.8% on a year-over-year basis. During the same quarter last year, the company earned $2.39 earnings per share. Equities analysts forecast that AppLovin Corporation will post 15.53 earnings per share for the current fiscal year.

Analyst Ratings Changes

Several brokerages have recently commented on APP. Raymond James Financial started coverage on shares of AppLovin in a research report on Monday, June 29th. They set a "strong-buy" rating and a $640.00 price objective for the company. Phillip Securities raised shares of AppLovin from a "moderate buy" rating to a "strong-buy" rating in a research note on Tuesday, August 11th. The Goldman Sachs Group reduced their price target on shares of AppLovin from $585.00 to $465.00 and set a "neutral" rating for the company in a report on Thursday, August 6th. Citigroup decreased their price target on shares of AppLovin from $710.00 to $650.00 and set a "buy" rating for the company in a research note on Friday, August 7th. Finally, Scotiabank reiterated a "sector outperform" rating and set a $515.00 price objective on shares of AppLovin in a report on Thursday, August 6th. Three equities research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and eight have given a Hold rating to the stock. Based on data from MarketBeat, AppLovin presently has a consensus rating of "Moderate Buy" and an average price target of $538.61.

Insider Activity at AppLovin

In other AppLovin news, CEO Arash Foroughi sold 22,544 shares of the firm's stock in a transaction 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 transaction, the chief executive officer directly owned 2,327,684 shares in the company, valued at approximately $1,152,157,026.32. This trade represents a 0.96% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director G Jr sold 3,076 shares of AppLovin stock in a transaction on Monday, July 6th. The stock was sold at an average price of $521.29, for a total transaction of $1,603,488.04. Following the transaction, the director directly owned 120,444 shares in the company, valued at $62,786,252.76. This represents a 2.49% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 271,152 shares of company stock valued at $135,295,830. 12.81% of the stock is owned by insiders.

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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