Dilation Capital Management LP Buys 7,060 Shares of AppLovin Corporation $APP

Key Points

• Dilation Capital Management LP increased its AppLovin stake by 46.6% in the fourth quarter, buying 7,060 additional shares to bring its total to 22,222 shares worth about $14.97 million.
• AppLovin beat earnings expectations in its latest quarter, reporting EPS of $3.56 versus estimates of $3.44 and revenue of $1.84 billion, up 58.9% year over year.
• Wall Street remains broadly positive on the stock, with a consensus rating of “Moderate Buy” and an average price target of $664.35, even after some analysts adjusted targets lower.

Dilation Capital Management LP increased its stake in shares of AppLovin Corporation (NASDAQ:APP - Free Report) by 46.6% during the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 22,222 shares of the company's stock after buying an additional 7,060 shares during the quarter. AppLovin comprises approximately 6.9% of Dilation Capital Management LP's investment portfolio, making the stock its 5th biggest position. Dilation Capital Management LP's holdings in AppLovin were worth $14,974,000 as of its most recent SEC filing.

A number of other large investors have also added to or reduced their stakes in the stock. Mediolanum International Funds Ltd boosted its holdings in shares of AppLovin by 73.5% in the 3rd quarter. Mediolanum International Funds Ltd now owns 76,736 shares of the company's stock valued at $54,664,000 after purchasing an additional 32,510 shares in the last quarter. Allworth Financial LP boosted its holdings in shares of AppLovin by 131.7% in the 3rd quarter. Allworth Financial LP now owns 6,049 shares of the company's stock valued at $4,347,000 after purchasing an additional 3,438 shares in the last quarter. CIBC Asset Management Inc boosted its holdings in shares of AppLovin by 14.8% in the 3rd quarter. CIBC Asset Management Inc now owns 117,126 shares of the company's stock valued at $84,160,000 after purchasing an additional 15,074 shares in the last quarter. APG Asset Management N.V. acquired a new stake in shares of AppLovin in the 3rd quarter valued at $4,958,000. Finally, Principal Financial Group Inc. boosted its holdings in shares of AppLovin by 946.5% in the 3rd quarter. Principal Financial Group Inc. now owns 326,999 shares of the company's stock valued at $234,962,000 after purchasing an additional 295,753 shares in the last quarter. Institutional investors and hedge funds own 41.85% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the company. The Goldman Sachs Group reduced their target price on AppLovin from $710.00 to $585.00 and set a "neutral" rating on the stock in a report on Thursday, February 12th. Wells Fargo & Company raised their target price on AppLovin from $560.00 to $571.00 and gave the company an "overweight" rating in a report on Thursday, May 7th. Evercore reaffirmed a "buy" rating on shares of AppLovin in a report on Friday, January 30th. BTIG Research reaffirmed a "buy" rating and issued a $640.00 target price on shares of AppLovin in a report on Thursday, May 7th. Finally, Argus assumed coverage on AppLovin in a report on Tuesday, April 14th. They issued a "buy" rating and a $520.00 target price on the stock. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $664.35.

AppLovin Price Performance

Shares of APP opened at $481.68 on Monday. 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 $161.82 billion, a price-to-earnings ratio of 41.38, a PEG ratio of 0.78 and a beta of 2.37. The company has a debt-to-equity ratio of 1.49, a quick ratio of 3.24 and a current ratio of 3.24. The stock has a fifty day moving average of $446.31 and a 200-day moving average of $523.19.

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

Insider Buying and Selling

In related news, Director Eduardo Vivas sold 163,910 shares of the firm's stock in a transaction on Monday, March 16th. The stock was sold at an average price of $453.49, for a total transaction of $74,331,545.90. Following the completion of the transaction, the director directly owned 6,969,382 shares of the company's stock, valued at $3,160,545,043.18. This trade represents a 2.30% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CTO Vasily Shikin sold 62,804 shares of the firm's stock in a transaction on Tuesday, March 10th. The stock was sold at an average price of $486.43, for a total value of $30,549,749.72. Following the transaction, the chief technology officer directly owned 3,255,273 shares of the company's stock, valued at approximately $1,583,462,445.39. This represents a 1.89% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 365,244 shares of company stock valued at $169,584,607 in the last three months. Insiders own 13.66% of the company's stock.

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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