AppLovin (NASDAQ:APP) Trading Up 2.2% - Here's Why

Key Points

• AppLovin shares rose 2.2% to $320.56 in midday trading, although volume was 34% below the average session level.
• Analyst sentiment remains positive, with a consensus “Moderate Buy” rating and an average price target of $538.61, despite several recent target reductions.
• The company reported quarterly EPS in line with estimates at $3.76, while revenue increased 52.8% year over year to $1.92 billion. Insiders sold roughly $135.3 million of stock during the past quarter.

AppLovin Corporation (NASDAQ:APP - Get Free Report)'s share price rose 2.2% on Friday . The company traded as high as $323.80 and last traded at $320.56. 3,749,801 shares traded hands during mid-day trading, a decline of 34% from the average session volume of 5,681,902 shares. The stock had previously closed at $313.58.

Analysts Set New Price Targets

Several research analysts have issued reports on APP shares. Phillip Securities upgraded AppLovin from a "moderate buy" rating to a "strong-buy" rating in a research report on Tuesday, August 11th. UBS Group decreased their price target on AppLovin from $798.00 to $790.00 and set a "buy" rating for the company in a research note on Thursday, August 6th. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and issued a $660.00 price objective on shares of AppLovin in a research report on Thursday, May 7th. Piper Sandler reduced their target price on AppLovin from $385.00 to $325.00 and set a "neutral" rating on the stock in a research note on Friday, August 21st. Finally, William Blair set a $440.00 target price on AppLovin in a research report on Monday, August 17th. Three research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eight have given a Hold rating to the company's stock. According to data from MarketBeat.com, AppLovin presently has a consensus rating of "Moderate Buy" and a consensus price target of $538.61.

AppLovin Stock Up 2.2%

The firm has a market capitalization of $107.28 billion, a PE ratio of 24.64, a PEG ratio of 0.67 and a beta of 2.49. The company has a fifty day simple moving average of $397.72 and a two-hundred day simple moving average of $441.12. The company has a debt-to-equity ratio of 1.11, a quick ratio of 4.30 and a current ratio of 4.30.

AppLovin (NASDAQ:APP - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The company reported $3.76 EPS for the quarter, meeting the consensus estimate of $3.76. The firm had revenue of $1.92 billion for the quarter, compared to analyst estimates of $1.94 billion. AppLovin had a return on equity of 193.10% and a net margin of 64.58%.The business's revenue for the quarter was up 52.8% on a year-over-year basis. During the same quarter last year, the firm posted $2.39 earnings per share. Analysts forecast that AppLovin Corporation will post 15.53 EPS for the current fiscal year.

Insider Buying and Selling at AppLovin

In other news, CEO Arash Foroughi sold 33,042 shares of the business's stock in a transaction dated 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 sale, the chief executive officer owned 2,369,351 shares in the company, valued at approximately $1,153,755,469.45. The trade was a 1.38% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director G 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 transaction of $1,603,488.04. Following the completion of the sale, the director directly owned 120,444 shares of the company's stock, valued at $62,786,252.76. The trade was a 2.49% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 271,152 shares of company stock valued at $135,295,830. Company insiders own 12.81% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in APP. Parkside Financial Bank & Trust lifted its stake in shares of AppLovin by 142.9% during the 2nd quarter. Parkside Financial Bank & Trust now owns 2,840 shares of the company's stock worth $1,463,000 after purchasing an additional 1,671 shares during the last quarter. Second Line Capital LLC grew its stake in AppLovin by 0.8% in the second quarter. Second Line Capital LLC now owns 21,752 shares of the company's stock valued at $11,207,000 after purchasing an additional 167 shares during the last quarter. Range Advisory LLC bought a new position in AppLovin in the second quarter worth about $435,000. Formuepleje A S bought a new position in AppLovin in the second quarter worth about $725,000. Finally, Tucker Asset Management LLC purchased a new stake in shares of AppLovin during the second quarter valued at about $449,000. 41.85% of the stock is currently owned by hedge funds and other 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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