Royal Bank of Canada Grows Holdings in AppLovin Corporation $APP

Key Points

• Royal Bank of Canada increased its stake in AppLovin Corporation by 61.1%, owning approximately 1.43 million shares worth around $380.1 million as of its latest SEC filing.
• AppLovin reported earnings of $2.26 per share, exceeding expectations, but with revenue of $1.26 billion, falling short of the projected $1.37 billion during the most recent quarter.
• Several analysts have raised their price targets for AppLovin, with Wells Fargo setting it at $491, maintaining an "overweight" rating amidst mixed performance in its Q2 earnings.

Royal Bank of Canada increased its stake in AppLovin Corporation (NASDAQ:APP - Free Report) by 61.1% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 1,434,503 shares of the company's stock after purchasing an additional 544,107 shares during the period. Royal Bank of Canada owned approximately 0.42% of AppLovin worth $380,102,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in the stock. Kingswood Wealth Advisors LLC lifted its position in AppLovin by 5.1% during the 1st quarter. Kingswood Wealth Advisors LLC now owns 1,663 shares of the company's stock worth $445,000 after buying an additional 80 shares in the last quarter. Wealth Enhancement Advisory Services LLC grew its stake in AppLovin by 62.7% in the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 172,378 shares of the company's stock valued at $45,675,000 after buying an additional 66,453 shares during the last quarter. Yousif Capital Management LLC grew its stake in AppLovin by 3.5% in the 1st quarter. Yousif Capital Management LLC now owns 3,544 shares of the company's stock valued at $939,000 after buying an additional 119 shares during the last quarter. Peak Retirement Planning Inc. acquired a new position in shares of AppLovin during the 4th quarter worth approximately $969,000. Finally, Assenagon Asset Management S.A. boosted its position in shares of AppLovin by 3.0% during the 1st quarter. Assenagon Asset Management S.A. now owns 4,173 shares of the company's stock worth $1,106,000 after acquiring an additional 121 shares in the last quarter. 41.85% of the stock is owned by institutional investors and hedge funds.

AppLovin Price Performance

NASDAQ:APP traded up $5.62 during mid-day trading on Wednesday, hitting $487.35. 5,041,861 shares of the stock traded hands, compared to its average volume of 7,004,444. The business's 50-day moving average price is $392.91 and its 200 day moving average price is $347.94. The company has a market cap of $164.85 billion, a PE ratio of 69.23, a price-to-earnings-growth ratio of 2.68 and a beta of 2.44. AppLovin Corporation has a 12-month low of $82.51 and a 12-month high of $525.15. The company has a quick ratio of 2.74, a current ratio of 2.74 and a debt-to-equity ratio of 3.01.

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

Insider Activity at AppLovin

In other AppLovin news, Director Eduardo Vivas sold 125,000 shares of the business's stock in a transaction that occurred on Tuesday, August 12th. The shares were sold at an average price of $466.00, for a total value of $58,250,000.00. Following the completion of the transaction, the director owned 7,283,292 shares of the company's stock, valued at $3,394,014,072. The trade was a 1.69% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Herald Y. Chen sold 200,000 shares of the business's stock in a transaction that occurred on Tuesday, August 12th. The stock was sold at an average price of $464.69, for a total transaction of $92,938,000.00. Following the completion of the transaction, the director directly owned 381,929 shares of the company's stock, valued at approximately $177,478,587.01. This represents a 34.37% decrease in their position. The disclosure for this sale can be found here. Insiders sold 1,236,152 shares of company stock worth $545,240,378 in the last 90 days. 13.66% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

Several equities analysts have recently issued reports on the stock. Citigroup reaffirmed a "buy" rating on shares of AppLovin in a research note on Thursday, May 29th. Wells Fargo & Company raised their price target on shares of AppLovin from $480.00 to $491.00 and gave the stock an "overweight" rating in a report on Thursday, August 21st. Oppenheimer reiterated an "outperform" rating and set a $500.00 price objective (down from $560.00) on shares of AppLovin in a report on Thursday, May 8th. BTIG Research lifted their price objective on shares of AppLovin from $480.00 to $483.00 and gave the company a "buy" rating in a report on Wednesday, July 23rd. Finally, Jefferies Financial Group raised their price target on shares of AppLovin from $460.00 to $530.00 and gave the company a "buy" rating in a research report on Thursday, May 8th. Two equities research analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, AppLovin presently has an average rating of "Moderate Buy" and a consensus price target of $478.81.

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.