QVT Financial LP Lowers Stock Holdings in AppLovin Corporation $APP

Key Points

• QVT Financial LP cut its AppLovin stake by 69.9% in the fourth quarter, leaving it with 979 shares worth about $660,000.
• Despite that sale, AppLovin continues to draw broad institutional and analyst support, with hedge funds and other institutions owning 41.85% of the stock and Wall Street maintaining an overall Moderate Buy rating with a consensus target of $669.62.
• The company recently posted strong results, beating expectations with $3.56 EPS and $1.84 billion in revenue, while revenue jumped 58.9% year over year; however, insider selling has been notable, including recent sales by the CEO and CTO.

QVT Financial LP decreased its position in shares of AppLovin Corporation (NASDAQ:APP - Free Report) by 69.9% during the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 979 shares of the company's stock after selling 2,274 shares during the period. QVT Financial LP's holdings in AppLovin were worth $660,000 at the end of the most recent reporting period.

A number of other large investors have also added to or reduced their stakes in the company. Allworth Financial LP lifted its holdings in shares of AppLovin by 131.7% during the third 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 during the last quarter. APG Asset Management N.V. purchased a new position in shares of AppLovin during the third quarter valued at approximately $4,958,000. Franklin Resources Inc. lifted its holdings in shares of AppLovin by 24.9% during the third quarter. Franklin Resources Inc. now owns 2,442,450 shares of the company's stock valued at $1,754,996,000 after purchasing an additional 487,492 shares during the last quarter. TIAA Trust National Association raised its holdings in AppLovin by 431.7% in the 3rd quarter. TIAA Trust National Association now owns 52,749 shares of the company's stock worth $37,902,000 after acquiring an additional 42,829 shares during the last quarter. Finally, Generate Investment Management Ltd purchased a new position in AppLovin in the 4th quarter worth approximately $2,347,000. Hedge funds and other institutional investors own 41.85% of the company's stock.

Wall Street Analyst Weigh In

A number of equities analysts recently weighed in on the stock. Argus assumed coverage on shares of AppLovin in a report on Tuesday, April 14th. They issued a "buy" rating and a $520.00 price objective for the company. Piper Sandler restated an "overweight" rating on shares of AppLovin in a report on Tuesday, June 9th. Wells Fargo & Company boosted their price objective on shares of AppLovin from $560.00 to $571.00 and gave the stock an "overweight" rating in a report on Thursday, May 7th. Morgan Stanley restated an "overweight" rating on shares of AppLovin in a report on Wednesday, May 27th. Finally, Arete Research set a $340.00 price objective on shares of AppLovin and gave the stock a "neutral" rating in a report on Monday, March 2nd. One analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $669.62.

AppLovin Price Performance

Shares of APP opened at $496.77 on Monday. The firm has a market cap of $166.88 billion, a PE ratio of 42.68, a P/E/G ratio of 0.81 and a beta of 2.45. The company has a current ratio of 3.24, a quick ratio of 3.24 and a debt-to-equity ratio of 1.49. The firm has a fifty day simple moving average of $482.88 and a two-hundred day simple moving average of $520.57. AppLovin Corporation has a 1-year low of $320.00 and a 1-year high of $745.61.

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

More 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

Insider Buying and Selling at AppLovin

In other AppLovin news, Director Maynard G. Webb, Jr. sold 3,076 shares of the business's stock in a transaction on Friday, June 5th. The shares were sold at an average price of $582.04, for a total transaction of $1,790,355.04. Following the completion of the sale, the director directly owned 123,520 shares in the company, valued at approximately $71,893,580.80. The trade was a 2.43% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CTO Vasily Shikin sold 8,112 shares of the business's stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $483.67, for a total transaction of $3,923,531.04. Following the sale, the chief technology officer owned 18,805 shares of the company's stock, valued at approximately $9,095,414.35. This represents a 30.14% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 226,014 shares of company stock worth $113,073,400. 13.66% of the stock is owned by corporate insiders.

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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