AppLovin (NASDAQ:APP) Trading 4% Higher - Still a Buy?

Key Points

• AppLovin shares rose 4% to about $310.54 in mid-day trading, although the price remains below its 50-day and 200-day moving averages.
• Analysts have recently lowered several price targets, but overall sentiment remains positive: MarketBeat reports a “Moderate Buy” consensus and an average target of $553.83.
• The company delivered strong results, with quarterly revenue up 52.8% year over year to $1.92 billion and EPS of $3.76; however, insiders sold approximately $153.8 million of stock in the past quarter.

Shares of AppLovin Corporation (NASDAQ:APP - Get Free Report) rose 4% during mid-day trading on Tuesday . The stock traded as high as $310.88 and last traded at $310.54. Approximately 3,975,444 shares changed hands during mid-day trading, a decline of 31% from the average session volume of 5,744,262 shares. The stock had previously closed at $298.59.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on APP shares. Bank of America reissued a "neutral" rating and set a $400.00 price target (down from $430.00) on shares of AppLovin in a report on Tuesday, August 11th. Citigroup cut their price objective on AppLovin from $710.00 to $650.00 and set a "buy" rating for the company in a report on Friday, August 7th. Wells Fargo & Company lowered their target price on AppLovin from $357.00 to $325.00 and set an "equal weight" rating on the stock in a report on Wednesday, August 19th. Phillip Securities raised AppLovin from a "moderate buy" rating to a "strong-buy" rating in a report on Tuesday, August 11th. Finally, Piper Sandler dropped their target price on AppLovin from $385.00 to $325.00 and set a "neutral" rating on the stock in a research report on Friday. Three analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eight have issued a Hold rating to the company. According to data from MarketBeat.com, AppLovin has a consensus rating of "Moderate Buy" and a consensus target price of $553.83.

AppLovin Stock Up 4.0%

The company has a debt-to-equity ratio of 1.11, a quick ratio of 4.30 and a current ratio of 4.30. The company's 50-day moving average price is $423.23 and its 200 day moving average price is $446.84. The stock has a market capitalization of $103.92 billion, a P/E ratio of 23.87, a P/E/G ratio of 0.62 and a beta of 2.54.

AppLovin (NASDAQ:APP - Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The company reported $3.76 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $3.76. AppLovin had a return on equity of 193.10% and a net margin of 64.58%.The business had revenue of $1.92 billion during the quarter, compared to analyst estimates of $1.94 billion. During the same quarter in the prior year, the business posted $2.39 EPS. AppLovin's revenue for the quarter was up 52.8% compared to the same quarter last year. As a group, equities analysts expect that AppLovin Corporation will post 15.53 earnings per share for the current year.

Insider Buying and Selling

In other AppLovin news, Director Maynard G. Webb, Jr. sold 3,076 shares of the company's stock in a transaction that occurred on Monday, July 6th. The stock was sold at an average price of $521.29, for a total value of $1,603,488.04. Following the completion of the transaction, the director directly owned 120,444 shares in the company, valued at $62,786,252.76. This represents a 2.49% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Victoria Valenzuela sold 20,000 shares of the stock in a transaction that occurred on Thursday, June 4th. The shares were sold at an average price of $565.89, for a total transaction of $11,317,800.00. Following the sale, the insider directly owned 243,961 shares of the company's stock, valued at approximately $138,055,090.29. This trade represents a 7.58% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 303,280 shares of company stock worth $153,835,185 in the last quarter. 12.81% of the stock is owned by insiders.

Institutional Trading of AppLovin

A number of institutional investors and hedge funds have recently bought and sold shares of APP. Revolve Wealth Partners LLC purchased a new position in AppLovin during the 4th quarter valued at approximately $294,000. Bison Wealth LLC bought a new position in shares of AppLovin during the 4th quarter valued at approximately $239,000. Integrated Wealth Concepts LLC boosted its position in shares of AppLovin by 58.0% during the 1st quarter. Integrated Wealth Concepts LLC now owns 1,692 shares of the company's stock valued at $448,000 after acquiring an additional 621 shares during the last quarter. NewEdge Advisors LLC boosted its position in shares of AppLovin by 5.7% during the 2nd quarter. NewEdge Advisors LLC now owns 14,523 shares of the company's stock valued at $5,084,000 after acquiring an additional 782 shares during the last quarter. Finally, Treasurer of the State of North Carolina grew its holdings in shares of AppLovin by 7.2% in the second quarter. Treasurer of the State of North Carolina now owns 139,189 shares of the company's stock valued at $48,727,000 after purchasing an additional 9,380 shares in the last quarter. 41.85% of the stock is currently owned by institutional investors.

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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