Newbrook Capital Advisors LP Acquires 23,612 Shares of AppLovin Corporation $APP

Key Points

• Newbrook Capital Advisors LP increased its stake in AppLovin Corporation by 35.1%, owning 90,891 shares valued at $24.08 million, which is approximately 3.8% of its investment portfolio.
• Insider selling activity was noted as both the CTO and CEO sold significant amounts of shares, with reported values exceeding $50 million combined in their recent transactions.
• Wall Street analysts have varied ratings for AppLovin, with a consensus price target of $478.81 and evidence of strong revenue growth, reporting a 77.1% increase year-over-year in quarterly revenue.

Newbrook Capital Advisors LP raised its stake in shares of AppLovin Corporation (NASDAQ:APP - Free Report) by 35.1% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 90,891 shares of the company's stock after buying an additional 23,612 shares during the period. AppLovin accounts for approximately 3.8% of Newbrook Capital Advisors LP's portfolio, making the stock its 12th biggest holding. Newbrook Capital Advisors LP's holdings in AppLovin were worth $24,083,000 as of its most recent SEC filing.

Several other hedge funds have also recently added to or reduced their stakes in APP. Focus Partners Advisor Solutions LLC lifted its holdings in shares of AppLovin by 6.1% during the 1st quarter. Focus Partners Advisor Solutions LLC now owns 2,187 shares of the company's stock worth $580,000 after acquiring an additional 125 shares during the period. QVT Financial LP bought a new stake in shares of AppLovin during the first quarter worth $765,000. Point72 Italy S.r.l. acquired a new position in AppLovin during the 1st quarter valued at about $4,637,000. Royal Bank of Canada grew its holdings in AppLovin by 61.1% during the 1st quarter. Royal Bank of Canada now owns 1,434,503 shares of the company's stock worth $380,102,000 after acquiring an additional 544,107 shares during the period. Finally, Graham Capital Management L.P. increased its holdings in AppLovin by 5.3% in the first quarter. Graham Capital Management L.P. now owns 8,228 shares of the company's stock valued at $2,180,000 after purchasing an additional 417 shares during the last quarter. Institutional investors own 41.85% of the company's stock.

Analyst Upgrades and Downgrades

A number of analysts have recently commented on APP shares. UBS Group boosted their price target on AppLovin from $450.00 to $475.00 and gave the company a "buy" rating in a report on Thursday, May 8th. The Goldman Sachs Group lifted their price objective on shares of AppLovin from $335.00 to $435.00 and gave the company a "neutral" rating in a report on Friday, May 9th. Needham & Company LLC restated a "hold" rating on shares of AppLovin in a report on Tuesday, August 26th. Wells Fargo & Company raised their target price on shares of AppLovin from $480.00 to $491.00 and gave the company an "overweight" rating in a research report on Thursday, August 21st. Finally, Jefferies Financial Group increased their price objective on shares of AppLovin from $460.00 to $530.00 and gave the stock a "buy" rating in a research note on Thursday, May 8th. Two investment analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $478.81.

Insider Activity

In other AppLovin news, CEO Arash Adam Foroughi sold 26,200 shares of the stock in a transaction that occurred on Friday, August 22nd. The shares were sold at an average price of $440.23, for a total value of $11,534,026.00. Following the sale, the chief executive officer directly owned 2,590,054 shares in the company, valued at $1,140,219,472.42. This represents a 1.00% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Victoria Valenzuela sold 15,000 shares of the stock in a transaction on Monday, August 25th. The stock was sold at an average price of $450.00, for a total transaction of $6,750,000.00. Following the completion of the transaction, the insider directly owned 304,955 shares in the company, valued at $137,229,750. The trade was a 4.69% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 1,236,152 shares of company stock worth $545,240,378 over the last ninety days. Company insiders own 13.66% of the company's stock.

AppLovin Price Performance

APP stock traded up $5.62 during midday trading on Wednesday, reaching $487.35. 5,049,446 shares of the stock were exchanged, compared to its average volume of 6,208,153. The company has a fifty day moving average price of $392.91 and a 200 day moving average price of $347.94. AppLovin Corporation has a 52 week low of $82.51 and a 52 week high of $525.15. The company has a debt-to-equity ratio of 3.01, a current ratio of 2.74 and a quick ratio of 2.74. The stock has a market capitalization of $164.85 billion, a PE ratio of 69.26, a P/E/G ratio of 2.68 and a beta of 2.44.

AppLovin (NASDAQ:APP - Get Free Report) last released its earnings results on Wednesday, August 6th. The company reported $2.26 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.05 by $0.21. AppLovin had a net margin of 45.72% and a return on equity of 252.67%. The company had revenue of $1.26 billion for the quarter, compared to the consensus estimate of $1.37 billion. During the same quarter in the previous year, the company earned $0.89 EPS. AppLovin's quarterly revenue was up 77.1% compared to the same quarter last year. As a group, analysts expect that AppLovin Corporation will post 6.87 EPS for the current fiscal year.

AppLovin Profile

AppLovin Corporation engages in building a software-based platform for advertisers to enhance the marketing and monetization of their content in the United States and internationally. It operates through two segments, Software Platform and Apps. The company's software solutions include AppDiscovery, a marketing software solution, which matches advertiser demand with publisher supply through auctions; MAX, an in-app bidding software that optimizes the value of a publisher's advertising inventory by running a real-time competitive auction; Adjust, a measurement and analytics marketing platform that provides marketers with the visibility, insights, and tools needed to grow their apps from early stage to maturity; and Wurl, a connected TV platform, which distributes streaming video for content companies and provides advertising and publishing solutions through its AdPool, ContentDiscovery, and Global FAST Pass products.