Lord Abbett & CO. LLC Cuts Stock Position in AppLovin Corporation $APP

Key Points

• Lord Abbett & Co. LLC cut its AppLovin stake by 39.9% in the fourth quarter, selling 198,412 shares and leaving it with 298,861 shares valued at about $201.4 million.
• AppLovin’s recent earnings were strong, with Q1 EPS of $3.56 beating estimates and revenue rising 58.9% year over year to $1.84 billion, helping support a bullish growth narrative.
• Insider selling has been notable, including recent share sales by CEO Arash Adam Foroughi and CFO Matthew Stumpf, which could weigh on near-term investor sentiment even as Wall Street remains generally positive on the stock.

Lord Abbett & CO. LLC cut its holdings in shares of AppLovin Corporation (NASDAQ:APP - Free Report) by 39.9% during the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 298,861 shares of the company's stock after selling 198,412 shares during the period. Lord Abbett & CO. LLC owned about 0.09% of AppLovin worth $201,379,000 as of its most recent SEC filing.

Other institutional investors and hedge funds also recently bought and sold shares of the company. Board of the Pension Protection Fund purchased a new stake in AppLovin during the fourth quarter worth about $27,000. Washington Trust Advisors Inc. increased its stake in AppLovin by 160.0% during the fourth quarter. Washington Trust Advisors Inc. now owns 39 shares of the company's stock worth $27,000 after purchasing an additional 24 shares during the period. Laurel Wealth Advisors LLC purchased a new stake in AppLovin during the fourth quarter worth about $32,000. Graney & King LLC purchased a new stake in AppLovin during the third quarter worth about $36,000. Finally, Aventura Private Wealth LLC purchased a new stake in AppLovin during the fourth quarter worth about $38,000. 41.85% of the stock is currently owned by hedge funds and other institutional investors.

Key AppLovin News

Here are the key news stories impacting AppLovin this week:

• Negative Sentiment: CEO Arash Adam Foroughi sold additional AppLovin shares on June 10, 11, and 12, including several transactions worth millions of dollars, which may pressure investor confidence in the near term. SEC filing
• Neutral Sentiment: Recent commentary from analysts and financial media remained constructive overall, with one piece arguing AppLovin’s selloff looks detached from fundamentals and highlighting strong Q1 revenue, EBITDA, and free cash flow growth. Article
• Neutral Sentiment: Separately, coverage noted that brokers still generally view AppLovin as an attractive stock, though these recommendations are often considered lagging indicators and may not move the shares much on their own. Article

AppLovin Stock Performance

Shares of AppLovin stock opened at $496.77 on Friday. AppLovin Corporation has a one year low of $320.00 and a one year high of $745.61. The company has a market cap of $166.88 billion, a PE ratio of 42.68, a P/E/G ratio of 0.78 and a beta of 2.45. 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 business has a 50-day simple moving average of $482.88 and a 200-day simple moving average of $520.84.

AppLovin (NASDAQ:APP - Get Free Report) last announced its quarterly earnings data on Wednesday, May 6th. The company reported $3.56 EPS for the quarter, topping 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 business had revenue of $1.84 billion during the quarter, compared to the consensus estimate of $1.77 billion. During the same period in the previous year, the company posted $1.67 earnings per share. The business's revenue for the quarter was up 58.9% on a year-over-year basis. On average, equities research analysts forecast that AppLovin Corporation will post 15.86 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on APP. Weiss Ratings lowered shares of AppLovin from a "hold (c+)" rating to a "hold (c)" rating in a research note on Thursday, May 7th. Citigroup reiterated a "buy" rating and set a $710.00 price target on shares of AppLovin in a research note on Monday, June 1st. JPMorgan Chase & Co. boosted their price target on shares of AppLovin from $500.00 to $515.00 and gave the stock a "neutral" rating in a research note on Thursday, May 7th. UBS Group lowered their price objective on AppLovin from $740.00 to $716.00 and set a "buy" rating for the company in a research report on Thursday, May 7th. Finally, Morgan Stanley reissued an "overweight" rating on shares of AppLovin in a research report on Wednesday, May 27th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $669.62.

Insider Buying and Selling at AppLovin

In other news, CFO Matthew Stumpf sold 9,052 shares of the business's stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $600.00, for a total transaction of $5,431,200.00. Following the completion of the transaction, the chief financial officer directly owned 177,450 shares of the company's stock, valued at approximately $106,470,000. The trade was a 4.85% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Eduardo Vivas sold 163,910 shares of the company's stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $453.49, for a total value 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 ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 389,924 shares of company stock valued at $187,404,946. 13.66% of the stock is currently 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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