Deepwater Asset Management LLC Boosts Position in AppLovin Corporation $APP

Key Points

• Deepwater Asset Management increased its AppLovin stake by 27.6% in the fourth quarter, buying 5,337 more shares and bringing its total holding to 24,707 shares worth about $16.65 million. AppLovin is now Deepwater’s second-largest position, making up roughly 4.8% of its portfolio.
• Institutional and insider activity was notable: several funds added to or initiated positions, while insiders sold shares over the last 90 days totaling 467,092 shares worth about $220.3 million. CFO Matthew Stumpf and CTO Vasily Shikin were among the recent sellers.
• AppLovin’s fundamentals and analyst sentiment remain strong, with the company recently beating earnings and revenue estimates and reporting 58.9% year-over-year revenue growth. Analysts currently have a consensus Moderate Buy rating, with an average price target of $664.35.

Deepwater Asset Management LLC increased its stake in AppLovin Corporation (NASDAQ:APP - Free Report) by 27.6% during the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 24,707 shares of the company's stock after purchasing an additional 5,337 shares during the period. AppLovin makes up approximately 4.8% of Deepwater Asset Management LLC's portfolio, making the stock its 2nd biggest holding. Deepwater Asset Management LLC's holdings in AppLovin were worth $16,648,000 as of its most recent SEC filing.

Several other institutional investors also recently modified their holdings of the stock. O Shaughnessy Asset Management LLC grew its position in AppLovin by 2.1% during the fourth quarter. O Shaughnessy Asset Management LLC now owns 64,659 shares of the company's stock valued at $43,569,000 after acquiring an additional 1,322 shares during the last quarter. Manchester Capital Management LLC grew its position in AppLovin by 54.8% during the fourth quarter. Manchester Capital Management LLC now owns 195 shares of the company's stock valued at $131,000 after acquiring an additional 69 shares during the last quarter. IMA Advisory Services Inc. grew its position in AppLovin by 185.7% during the fourth quarter. IMA Advisory Services Inc. now owns 60 shares of the company's stock valued at $40,000 after acquiring an additional 39 shares during the last quarter. Syon Capital LLC bought a new position in AppLovin during the fourth quarter valued at approximately $464,000. Finally, Capital World Investors grew its position in AppLovin by 5.4% during the fourth quarter. Capital World Investors now owns 2,778,549 shares of the company's stock valued at $1,872,242,000 after acquiring an additional 143,361 shares during the last quarter. 41.85% of the stock is currently owned by institutional investors.

Insider Activity

In other news, CFO Matthew Stumpf sold 9,052 shares of the firm's stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $600.00, for a total value of $5,431,200.00. Following the transaction, the chief financial officer owned 177,450 shares in the company, valued at approximately $106,470,000. This trade represents a 4.85% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CTO Vasily Shikin sold 62,804 shares of the firm's stock in a transaction that occurred on Tuesday, March 10th. The stock was sold at an average price of $486.43, for a total transaction of $30,549,749.72. Following the completion of the transaction, the chief technology officer owned 3,255,273 shares in the company, valued at $1,583,462,445.39. This represents a 1.89% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 467,092 shares of company stock worth $220,268,340 over the last ninety days. Company insiders own 13.66% of the company's stock.

Analyst Ratings Changes

A number of brokerages have commented on APP. Arete Research set a $340.00 price target on shares of AppLovin and gave the company a "neutral" rating in a research report on Monday, March 2nd. Royal Bank Of Canada reiterated an "outperform" rating and set a $700.00 price target on shares of AppLovin in a research report on Thursday, February 12th. Morgan Stanley reiterated an "overweight" rating on shares of AppLovin in a research report on Wednesday, May 27th. Argus began coverage on shares of AppLovin in a research report on Tuesday, April 14th. They set a "buy" rating and a $520.00 price target on the stock. Finally, BTIG Research reiterated a "buy" rating and set a $640.00 price target on shares of AppLovin in a research report on Thursday, May 7th. One research analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and five have given a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $664.35.

AppLovin Price Performance

Shares of AppLovin stock opened at $557.20 on Monday. The company has a debt-to-equity ratio of 1.49, a quick ratio of 3.24 and a current ratio of 3.24. AppLovin Corporation has a 52-week low of $320.00 and a 52-week high of $745.61. The stock has a market capitalization of $187.19 billion, a price-to-earnings ratio of 47.87, a P/E/G ratio of 0.91 and a beta of 2.45. The company's 50 day moving average price is $470.43 and its 200-day moving average price is $521.30.

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

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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