Vanguard Personalized Indexing Management LLC Raises Stake in AppLovin Corporation $APP

Key Points

• Vanguard Personalized Indexing Management increased its AppLovin stake by 14.3% in the fourth quarter, adding 4,919 shares to bring its total to 39,240 shares worth about $26.4 million.
• AppLovin reported strong first-quarter results, posting $3.56 EPS versus the $3.44 estimate and revenue of $1.84 billion, which was well above expectations and up 58.9% year over year.
• Despite bullish analyst coverage and a consensus Moderate Buy rating with a $669.62 price target, recent insider selling by the CEO and CFO may weigh on sentiment in the near term.

Vanguard Personalized Indexing Management LLC raised its position in AppLovin Corporation (NASDAQ:APP - Free Report) by 14.3% in the fourth quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 39,240 shares of the company's stock after acquiring an additional 4,919 shares during the quarter. Vanguard Personalized Indexing Management LLC's holdings in AppLovin were worth $26,441,000 as of its most recent SEC filing.

Other institutional investors also recently added to or reduced their stakes in the company. Allworth Financial LP lifted its stake in AppLovin by 131.7% in the third quarter. Allworth Financial LP now owns 6,049 shares of the company's stock worth $4,347,000 after acquiring an additional 3,438 shares during the last quarter. APG Asset Management N.V. purchased a new stake in shares of AppLovin during the 3rd quarter worth approximately $4,958,000. Franklin Resources Inc. lifted its position in shares of AppLovin by 24.9% during the 3rd quarter. Franklin Resources Inc. now owns 2,442,450 shares of the company's stock worth $1,754,996,000 after buying an additional 487,492 shares during the last quarter. TIAA Trust National Association lifted its position in shares of AppLovin by 431.7% during the 3rd quarter. TIAA Trust National Association now owns 52,749 shares of the company's stock worth $37,902,000 after buying an additional 42,829 shares during the last quarter. Finally, Generate Investment Management Ltd purchased a new stake in shares of AppLovin during the 4th quarter worth approximately $2,347,000. Hedge funds and other institutional investors own 41.85% of the company's stock.

AppLovin Stock Performance

Shares of AppLovin stock opened at $496.77 on Monday. The firm's fifty day simple moving average is $482.88 and its 200-day simple moving average is $520.57. The stock has a market capitalization of $166.88 billion, a price-to-earnings ratio of 42.68, a PEG ratio of 0.81 and a beta of 2.45. AppLovin Corporation has a 12 month low of $320.00 and a 12 month high of $745.61. The company has a debt-to-equity ratio of 1.49, a current ratio of 3.24 and a quick ratio of 3.24.

AppLovin (NASDAQ:APP - Get Free Report) last announced its earnings results on Wednesday, May 6th. The company reported $3.56 EPS for the quarter, beating analysts' consensus estimates of $3.44 by $0.12. The business had revenue of $1.84 billion for the quarter, compared to analysts' expectations 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% on a year-over-year basis. During the same period in the previous year, the company posted $1.67 EPS. As a group, equities analysts forecast that AppLovin Corporation will post 15.86 earnings per share for the current year.

Analysts Set New Price Targets

Several analysts have recently weighed in on the stock. UBS Group reduced their price objective on shares of AppLovin from $740.00 to $716.00 and set a "buy" rating for the company in a research report on Thursday, May 7th. Wedbush restated an "outperform" rating and set a $640.00 price objective on shares of AppLovin in a research report on Thursday, May 7th. Arete Research set a $340.00 target price on shares of AppLovin and gave the company a "neutral" rating in a report on Monday, March 2nd. Oppenheimer cut their target price on shares of AppLovin from $740.00 to $660.00 and set an "outperform" rating on the stock in a report on Thursday, March 5th. Finally, KeyCorp set a $775.00 target price on shares of AppLovin in a report on Wednesday. One research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $669.62.

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 Activity

In other AppLovin news, CFO Matthew Stumpf sold 9,052 shares of the business's stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $600.00, for a total value of $5,431,200.00. Following the transaction, the chief financial officer directly owned 177,450 shares of the company's stock, valued at approximately $106,470,000. The trade was a 4.85% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO Arash Adam Foroughi sold 33,042 shares of the business's stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $486.95, for a total transaction of $16,089,801.90. Following the completion of the transaction, the chief executive officer directly owned 2,369,351 shares in the company, valued at $1,153,755,469.45. This represents a 1.38% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 226,014 shares of company stock valued at $113,073,400. 13.66% of the stock is owned by corporate insiders.

AppLovin 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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