Overbrook Management Corp Sells 17,070 Shares of AppLovin Corporation $APP

Key Points

• Overbrook Management reduced its AppLovin stake by 58.5% in the second quarter, selling 17,070 shares and retaining 12,111 shares valued at approximately $6.24 million.
• AppLovin’s quarterly revenue rose 52.8% year over year to $1.92 billion, but slightly missed estimates, while management cited slower improvement in its core gaming advertising models.
• The stock traded near its 52-week low, with analysts divided: the consensus remained “Moderate Buy” with a $565.91 average target, while several firms recently cut targets and cited growth durability and competition from Unity and Meta.

Overbrook Management Corp lessened its stake in AppLovin Corporation (NASDAQ:APP - Free Report) by 58.5% during the 2nd quarter, according to its most recent disclosure with the SEC. The institutional investor owned 12,111 shares of the company's stock after selling 17,070 shares during the quarter. AppLovin makes up about 0.9% of Overbrook Management Corp's investment portfolio, making the stock its 25th largest position. Overbrook Management Corp's holdings in AppLovin were worth $6,240,000 as of its most recent filing with the SEC.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. State Street Corp increased its holdings in AppLovin by 111.1% in the 3rd quarter. State Street Corp now owns 11,852,466 shares of the company's stock valued at $8,516,471,000 after acquiring an additional 6,237,051 shares during the last quarter. Corient Private Wealth LLC increased its holdings in shares of AppLovin by 3,118.6% in the fourth quarter. Corient Private Wealth LLC now owns 4,194,071 shares of the company's stock worth $2,826,049,000 after purchasing an additional 4,063,763 shares during the last quarter. Norges Bank purchased a new stake in shares of AppLovin in the fourth quarter worth about $2,040,321,000. Northern Trust Corp lifted its position in shares of AppLovin by 46.8% in the third quarter. Northern Trust Corp now owns 2,374,460 shares of the company's stock worth $1,706,144,000 after buying an additional 756,660 shares in the last quarter. Finally, Amundi boosted its stake in AppLovin by 81.3% during the fourth quarter. Amundi now owns 1,426,896 shares of the company's stock valued at $961,471,000 after buying an additional 639,836 shares during the last quarter. Institutional investors own 41.85% of the company's stock.

Key AppLovin News

Here are the key news stories impacting AppLovin this week:

• Positive Sentiment: Some analysts remain constructive on AppLovin’s valuation and financial profile. Phillip Securities upgraded the stock, while a recent analysis argued that the shares may be mispriced relative to the company’s fundamentals after reaching a 52-week low. AppLovin Upgraded at Phillip Securities AppLovin at 52-Week Low
• Neutral Sentiment: JPMorgan initiated coverage with a Neutral rating, recognizing AppLovin’s strong profitability and balance-sheet profile while questioning whether its rapid mobile-gaming advertising growth can continue. Bank of America also rates the shares Neutral. JPMorgan Initiates AppLovin Coverage Bank of America Neutral Rating
• Negative Sentiment: AppLovin’s latest quarterly results fell slightly short of revenue expectations, and adjusted EBITDA also missed estimates. Management attributed the weakness to slower-than-usual improvements in its core gaming advertising models, intensifying concerns about earnings-growth durability. AppLovin Q2 Earnings Call
• Negative Sentiment: Competitive risks from Unity and Meta, as well as questions about whether Google could challenge AppLovin’s advertising position, are weighing on the investment narrative. BTIG issued a pessimistic forecast, and another analyst downgrade previously contributed to selling pressure. BTIG Forecast for AppLovin AppLovin and Google Competition
• Negative Sentiment: Quant fund Renaissance Technologies exited its AppLovin position, a potential additional overhang for sentiment even though the move reflects portfolio management rather than a fundamental company announcement. Renaissance Changes Holdings

AppLovin Stock Performance

APP stock opened at $315.44 on Monday. The company has a quick ratio of 4.30, a current ratio of 4.30 and a debt-to-equity ratio of 1.11. AppLovin Corporation has a twelve month low of $303.17 and a twelve month high of $745.61. The stock has a market capitalization of $105.56 billion, a price-to-earnings ratio of 24.25, a price-to-earnings-growth ratio of 0.63 and a beta of 2.54. The firm's fifty day simple moving average is $447.84 and its two-hundred day simple moving average is $455.50.

AppLovin (NASDAQ:APP - Get Free Report) last released its earnings results on Tuesday, August 4th. The company reported $3.76 earnings per share (EPS) for the quarter, hitting the consensus estimate of $3.76. AppLovin had a net margin of 64.58% and a return on equity of 193.10%. The firm had revenue of $1.92 billion during the quarter, compared to analyst estimates of $1.94 billion. During the same quarter last year, the business earned $2.39 EPS. The business's revenue was up 52.8% on a year-over-year basis. As a group, analysts anticipate that AppLovin Corporation will post 15.57 earnings per share for the current year.

Wall Street Analyst Weigh In

A number of analysts have issued reports on APP shares. Wells Fargo & Company reaffirmed an "equal weight" rating and issued a $357.00 price objective (down from $575.00) on shares of AppLovin in a research note on Thursday, August 6th. Needham & Company LLC cut their target price on shares of AppLovin from $700.00 to $500.00 and set a "buy" rating for the company in a report on Thursday, August 6th. Bank of America restated a "neutral" rating and issued a $400.00 price target (down from $430.00) on shares of AppLovin in a research report on Tuesday, August 11th. JPMorgan Chase & Co. upped their price target on shares of AppLovin from $500.00 to $515.00 and gave the company a "neutral" rating in a research note on Thursday, May 7th. Finally, Royal Bank Of Canada lowered their price objective on shares of AppLovin from $700.00 to $575.00 and set an "outperform" rating for the company in a research report on Thursday, August 6th. Three research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eight have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $565.91.

Insiders Place Their Bets

In related news, Director Eduardo Vivas sold 163,910 shares of the business's stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $504.06, for a total transaction of $82,620,474.60. Following the completion of the transaction, the director owned 6,785,087 shares in the company, valued at $3,420,090,953.22. The trade was a 2.36% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Matthew Stumpf sold 9,052 shares of the stock in a transaction on Thursday, May 28th. The stock was 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 disclosure for this sale is available in the SEC filing. Insiders have sold 393,000 shares of company stock valued at $197,297,363 over the last quarter. Corporate insiders own 12.81% of the company's stock.

About AppLovin

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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