Resona Asset Management Co. Ltd. Has $34.06 Million Stake in AppLovin Corporation $APP

Key Points

• Resona Asset Management reduced its AppLovin stake by 6.5% in the second quarter, selling 4,624 shares and retaining 66,572 shares valued at approximately $34.1 million. Institutional investors and hedge funds collectively own 41.85% of the company.
• AppLovin reported quarterly EPS of $3.76, in line with estimates, while revenue rose 52.8% year over year to $1.92 billion but slightly missed expectations. Analysts remain broadly positive, with a “Moderate Buy” consensus and an average price target of $565.91, despite several recent target reductions.
• The stock opened at $315.44, near its 52-week low of $303.17 and well below its 50-day and 200-day moving averages. Investor concerns include slowing gaming-advertising model improvements, competitive threats from Unity and Meta, and recent insider selling.

Resona Asset Management Co. Ltd. reduced its stake in shares of AppLovin Corporation (NASDAQ:APP - Free Report) by 6.5% during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 66,572 shares of the company's stock after selling 4,624 shares during the period. Resona Asset Management Co. Ltd.'s holdings in AppLovin were worth $34,063,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently made changes to their positions in APP. Vanguard Group Inc. increased its holdings in shares of AppLovin by 0.7% during the 4th quarter. Vanguard Group Inc. now owns 25,120,575 shares of the company's stock valued at $16,926,746,000 after acquiring an additional 166,117 shares during the last quarter. State Street Corp raised its stake in shares of AppLovin by 0.4% in the 4th quarter. State Street Corp now owns 11,904,843 shares of the company's stock valued at $8,021,721,000 after acquiring an additional 52,377 shares in the last quarter. Geode Capital Management LLC lifted its holdings in AppLovin by 6.7% in the 4th quarter. Geode Capital Management LLC now owns 7,167,003 shares of the company's stock worth $4,817,269,000 after purchasing an additional 448,005 shares during the last quarter. Price T Rowe Associates Inc. MD boosted its position in AppLovin by 3.6% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 6,089,735 shares of the company's stock worth $4,103,386,000 after purchasing an additional 212,349 shares during the period. Finally, Morgan Stanley boosted its position in AppLovin by 10.7% during the fourth quarter. Morgan Stanley now owns 5,561,646 shares of the company's stock worth $3,747,551,000 after purchasing an additional 538,806 shares during the period. Institutional investors and hedge funds own 41.85% of the company's stock.

AppLovin Trading Up 0.9%

Shares of AppLovin stock opened at $315.44 on Friday. AppLovin Corporation has a 1 year low of $303.17 and a 1 year high of $745.61. The company's fifty day simple moving average is $447.84 and its 200-day simple moving average is $456.06. The company has a market cap of $105.56 billion, a price-to-earnings ratio of 24.25, a PEG ratio of 0.63 and a beta of 2.54. The company has a current ratio of 4.30, a quick ratio of 4.30 and a debt-to-equity ratio of 1.11.

AppLovin (NASDAQ:APP - Get Free Report) last released its earnings results on Tuesday, August 4th. The company reported $3.76 EPS for the quarter, meeting 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 analysts' expectations of $1.94 billion. During the same period in the prior year, the company earned $2.39 EPS. The business's quarterly revenue was up 52.8% compared to the same quarter last year. As a group, sell-side analysts expect that AppLovin Corporation will post 15.57 EPS for the current year.

Key Stories Impacting AppLovin

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

Insider Buying and Selling at AppLovin

In related news, CFO Matthew Stumpf sold 9,052 shares of AppLovin 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 sale, the chief financial officer directly owned 177,450 shares of the company's stock, valued at $106,470,000. This trade represents a 4.85% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Arash Adam Foroughi sold 33,042 shares of the company's stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $486.95, for a total value of $16,089,801.90. Following the completion of the transaction, the chief executive officer directly owned 2,369,351 shares of the company's stock, valued at approximately $1,153,755,469.45. This trade represents a 1.38% 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 in the last three months. Company insiders own 12.81% of the company's stock.

Wall Street Analyst Weigh In

APP has been the topic of a number of recent analyst reports. Benchmark dropped their price target on shares of AppLovin from $775.00 to $500.00 and set a "buy" rating on the stock in a research report on Thursday, August 6th. The Goldman Sachs Group decreased their price objective on shares of AppLovin from $585.00 to $465.00 and set a "neutral" rating for the company in a report on Thursday, August 6th. BTIG Research dropped their target price on shares of AppLovin from $574.00 to $408.00 and set a "buy" rating on the stock in a report on Wednesday. Wedbush cut their target price on shares of AppLovin from $640.00 to $610.00 and set an "outperform" rating for the company in a research report on Thursday, August 6th. Finally, UBS Group decreased their price target on shares of AppLovin from $798.00 to $790.00 and set a "buy" rating for the company in a report on Thursday, August 6th. Three analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and eight have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $565.91.

AppLovin Company 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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