AppLovin (NASDAQ:APP) Trading Up 4.4% – What’s Next?

AppLovin Co. (NASDAQ:APP)’s stock price traded up 4.4% during trading on Tuesday . The stock traded as high as $357.89 and last traded at $355.68. 778,770 shares were traded during mid-day trading, a decline of 82% from the average session volume of 4,441,320 shares. The stock had previously closed at $340.59.

Analysts Set New Price Targets

Several analysts have issued reports on the company. Macquarie upped their target price on AppLovin from $150.00 to $270.00 and gave the company an “outperform” rating in a report on Thursday, November 7th. The Goldman Sachs Group lowered shares of AppLovin from a “buy” rating to a “neutral” rating and upped their price objective for the company from $103.00 to $150.00 in a report on Monday, October 14th. Daiwa America raised shares of AppLovin from a “hold” rating to a “strong-buy” rating in a research note on Friday, November 8th. Daiwa Capital Markets raised shares of AppLovin from a “neutral” rating to an “outperform” rating and increased their price target for the company from $80.00 to $280.00 in a research note on Friday, November 8th. Finally, Oppenheimer lifted their price target on shares of AppLovin from $260.00 to $480.00 and gave the company an “outperform” rating in a research report on Monday, November 25th. One analyst has rated the stock with a sell rating, four have assigned a hold rating, fourteen have given a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $265.57.

AppLovin Stock Performance

The firm has a market capitalization of $123.69 billion, a price-to-earnings ratio of 110.29, a PEG ratio of 4.15 and a beta of 2.27. The firm has a 50 day moving average price of $201.91 and a 200-day moving average price of $126.29. The company has a debt-to-equity ratio of 3.70, a current ratio of 2.41 and a quick ratio of 2.41.

AppLovin (NASDAQ:APP) last announced its quarterly earnings data on Wednesday, November 6th. The company reported $1.25 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.92 by $0.33. The business had revenue of $1.20 billion during the quarter, compared to analysts’ expectations of $1.13 billion. AppLovin had a return on equity of 122.24% and a net margin of 26.85%. The business’s quarterly revenue was up 38.6% compared to the same quarter last year. During the same quarter last year, the business posted $0.30 EPS. As a group, sell-side analysts expect that AppLovin Co. will post 4.06 earnings per share for the current fiscal year.

Insider Activity

In related news, CTO Vasily Shikin sold 593,588 shares of the company’s stock in a transaction dated Thursday, November 21st. The stock was sold at an average price of $319.37, for a total value of $189,574,199.56. Following the completion of the sale, the chief technology officer now directly owns 3,919,024 shares of the company’s stock, valued at $1,251,618,694.88. This represents a 13.15 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Dawson Alyssa Harvey sold 1,500 shares of the business’s stock in a transaction that occurred on Tuesday, September 10th. The shares were sold at an average price of $87.90, for a total value of $131,850.00. Following the completion of the sale, the director now owns 10,247 shares of the company’s stock, valued at approximately $900,711.30. This represents a 12.77 % decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 884,395 shares of company stock worth $243,101,629. 14.69% of the stock is currently owned by corporate insiders.

Institutional Trading of AppLovin

Several institutional investors and hedge funds have recently bought and sold shares of the business. Capital Performance Advisors LLP acquired a new stake in shares of AppLovin during the third quarter worth $25,000. DT Investment Partners LLC purchased a new stake in shares of AppLovin in the third quarter valued at about $27,000. Meeder Asset Management Inc. purchased a new position in AppLovin during the third quarter worth about $27,000. Raleigh Capital Management Inc. acquired a new stake in AppLovin in the third quarter valued at about $29,000. Finally, Quest Partners LLC purchased a new stake in AppLovin in the 2nd quarter valued at approximately $33,000. Hedge funds and other institutional investors own 41.85% of the company’s stock.

AppLovin Company 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.