Ferguson Wellman Capital Management Inc. Purchases New Position in AppLovin Corporation $APP

Key Points

• Ferguson Wellman Capital Management opened a new position in AppLovin during the first quarter, buying 65,144 shares worth about $25.9 million.
• AppLovin shares fell 2.6% to $506.98, even as the company reported better-than-expected quarterly results with EPS of $3.56 and revenue of $1.84 billion, up 58.9% year over year.
• Wall Street remains largely bullish, with several firms reiterating Buy or Overweight ratings and a consensus price target of $668.45, though recent insider sales and questions over political donations and Chinese investor ties may weigh on sentiment.

Ferguson Wellman Capital Management Inc. purchased a new position in AppLovin Corporation (NASDAQ:APP - Free Report) in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm purchased 65,144 shares of the company's stock, valued at approximately $25,927,000.

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Redhawk Wealth Advisors Inc. boosted its holdings in shares of AppLovin by 2.9% in the 4th quarter. Redhawk Wealth Advisors Inc. now owns 640 shares of the company's stock worth $431,000 after purchasing an additional 18 shares during the period. Verdence Capital Advisors LLC lifted its position in AppLovin by 5.7% in the fourth quarter. Verdence Capital Advisors LLC now owns 333 shares of the company's stock worth $224,000 after buying an additional 18 shares during the last quarter. Strategic Advocates LLC boosted its stake in AppLovin by 0.8% during the third quarter. Strategic Advocates LLC now owns 2,576 shares of the company's stock worth $1,851,000 after buying an additional 21 shares during the period. Finivi Inc. increased its position in AppLovin by 3.2% during the fourth quarter. Finivi Inc. now owns 711 shares of the company's stock valued at $479,000 after acquiring an additional 22 shares during the last quarter. Finally, Alta Wealth Advisors LLC increased its position in AppLovin by 0.6% during the fourth quarter. Alta Wealth Advisors LLC now owns 3,925 shares of the company's stock valued at $2,645,000 after acquiring an additional 24 shares during the last quarter. 41.85% of the stock is currently owned by hedge funds and other institutional investors.

More AppLovin News

Here are the key news stories impacting AppLovin this week:

• Positive Sentiment: Jefferies survey data suggests AppLovin is gaining e-commerce ad share as advertisers expand platform use, with its share of advertiser budgets rising to 11.1%, reinforcing the view that its ad tech is still taking share. Article on Jefferies survey and budget share gains
• Positive Sentiment: Analysts remain constructive, with BTIG reaffirming a Buy rating and a $640 price target, while other reports point to AppLovin’s strong earnings execution, revenue growth, and expanding margins. BTIG price target and earnings outlook article
• Positive Sentiment: Market commentary highlights that investors are closely watching AppLovin’s growth story, which can support momentum when sentiment around AI and ad-tech leaders is strong. Zacks article on investor interest
• Neutral Sentiment: Short-interest data showed no reported short interest as of July 10, so this update does not appear to signal meaningful bearish positioning.
• Negative Sentiment: Director Maynard G. Webb, Jr. sold 3,076 shares worth about $1.6 million, which may weigh on sentiment even though he still retains a large position. SEC filing on insider sale
• Negative Sentiment: New reporting raised questions about political donations and Chinese investor ties, introducing potential reputational and geopolitical overhangs for AppLovin (APP). Yahoo Finance article on political donations and investor ties

AppLovin Trading Down 2.6%

APP stock traded down $13.45 during trading on Friday, hitting $506.98. The company had a trading volume of 3,490,995 shares, compared to its average volume of 5,158,602. AppLovin Corporation has a 52-week low of $332.32 and a 52-week high of $745.61. The company has a 50 day simple moving average of $509.16 and a 200-day simple moving average of $499.15. The firm has a market capitalization of $170.31 billion, a P/E ratio of 43.55, a PEG ratio of 0.82 and a beta of 2.49. The company has a quick ratio of 3.24, a current ratio of 3.24 and a debt-to-equity ratio of 1.49.

AppLovin (NASDAQ:APP - Get Free Report) last issued its earnings results on Wednesday, May 6th. The company reported $3.56 EPS for the quarter, topping analysts' consensus estimates of $3.44 by $0.12. The business had revenue of $1.84 billion for 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%. The company's revenue for the quarter was up 58.9% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.67 EPS. As a group, research analysts forecast that AppLovin Corporation will post 15.93 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on APP shares. Benchmark restated a "buy" rating on shares of AppLovin in a report on Wednesday, June 10th. Wells Fargo & Company upped their price target on shares of AppLovin from $571.00 to $575.00 and gave the company an "overweight" rating in a report on Tuesday, July 7th. Needham & Company LLC reissued a "buy" rating and issued a $700.00 price objective on shares of AppLovin in a research note on Thursday, May 28th. Piper Sandler restated an "overweight" rating on shares of AppLovin in a research report on Tuesday. Finally, BTIG Research reaffirmed a "buy" rating and set a $640.00 target price on shares of AppLovin in a research note on Thursday, May 7th. Two analysts have 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 MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $668.45.

Insiders Place Their Bets

In other news, CFO Matthew Stumpf sold 9,052 shares of the business's stock in a transaction dated 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 completion of the sale, the chief financial officer owned 177,450 shares in the company, valued at approximately $106,470,000. The trade was a 4.85% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Maynard G. Webb, Jr. sold 3,076 shares of the company's stock in a transaction that occurred 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 completion of the sale, the director directly owned 120,444 shares of the company's stock, valued at $62,786,252.76. The trade was a 2.49% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 393,000 shares of company stock worth $197,297,363. 13.66% of the stock is owned by company insiders.

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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