Wedbush Forecasts Strong Price Appreciation for AppLovin (NASDAQ:APP) Stock

Key Points

• Wedbush has raised its target price for AppLovin (NASDAQ: APP) from $725.00 to $745.00, indicating a potential upside of 12.53% based on the current trading price.
• In addition to Wedbush's upgrade, multiple brokerages have issued positive ratings and increased price targets for AppLovin, with Bank of America setting its target at $860.00.
• AppLovin reported strong quarterly earnings, with an EPS of $2.26, surpassing analysts' estimates and marking a 77.1% year-over-year revenue increase.

AppLovin (NASDAQ:APP - Get Free Report) had its target price increased by stock analysts at Wedbush from $725.00 to $745.00 in a note issued to investors on Monday,Benzinga reports. The brokerage presently has an "outperform" rating on the stock. Wedbush's price target points to a potential upside of 12.53% from the company's current price.

A number of other brokerages have also recently issued reports on APP. Weiss Ratings restated a "buy (b-)" rating on shares of AppLovin in a research note on Saturday, September 27th. 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 research note on Thursday, August 21st. Piper Sandler upped their price objective on AppLovin from $500.00 to $740.00 and gave the company an "overweight" rating in a research note on Friday, September 26th. Phillip Securities raised AppLovin to a "moderate buy" rating in a report on Monday, September 29th. Finally, Bank of America boosted their price target on AppLovin from $580.00 to $860.00 and gave the company a "buy" rating in a research note on Wednesday, October 1st. Two analysts have rated the stock with a Strong Buy rating, twenty have issued a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $579.81.

AppLovin Stock Performance

AppLovin stock traded down $20.74 during trading hours on Monday, hitting $662.02. The stock had a trading volume of 730,616 shares, compared to its average volume of 7,402,440. The company has a 50-day moving average of $514.58 and a two-hundred day moving average of $392.05. 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 has a fifty-two week low of $137.20 and a fifty-two week high of $745.61. The company has a market cap of $223.93 billion, a PE ratio of 94.89, a price-to-earnings-growth ratio of 3.74 and a beta of 2.53.

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

Insider Activity at AppLovin

In other AppLovin news, insider Victoria Valenzuela sold 35,000 shares of the business's stock in a transaction dated Thursday, September 4th. The shares were sold at an average price of $502.23, for a total value of $17,578,050.00. Following the completion of the transaction, the insider directly owned 269,955 shares of the company's stock, valued at approximately $135,579,499.65. The trade was a 11.48% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Dawson Alyssa Harvey sold 350 shares of the stock in a transaction that occurred on Friday, September 5th. The shares were sold at an average price of $487.97, for a total transaction of $170,789.50. Following the sale, the director directly owned 3,150 shares in the company, valued at $1,537,105.50. This trade represents a 10.00% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 1,156,788 shares of company stock worth $514,863,333. 13.66% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in APP. Hilltop National Bank bought a new stake in shares of AppLovin during the second quarter worth approximately $26,000. LFA Lugano Financial Advisors SA bought a new stake in shares of AppLovin in the 2nd quarter valued at about $26,000. Twin Peaks Wealth Advisors LLC acquired a new stake in shares of AppLovin in the 2nd quarter valued at approximately $33,000. Atala Financial Inc bought a new position in AppLovin during the 1st quarter worth approximately $26,000. Finally, Hoey Investments Inc. acquired a new position in AppLovin during the second quarter valued at approximately $35,000. 41.85% of the stock is currently owned by institutional investors and hedge funds.

About AppLovin

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.

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