AppLovin (NASDAQ:APP) Shares Up 11.7% – What’s Next?

Shares of AppLovin Corporation (NASDAQ:APP) shot up 11.7% on Tuesday . The stock traded as high as $538.34 and last traded at $537.98. 2,355,623 shares traded hands during mid-day trading, a decline of 57% from the average session volume of 5,482,489 shares. The stock had previously closed at $481.68.

AppLovin News Roundup

Here are the key news stories impacting AppLovin this week:

• Positive Sentiment: Morgan Stanley reiterated an Overweight rating and $720 price target, helping push shares sharply higher and reinforcing the view that Wall Street still sees more upside in APP. AppLovin Stock Is Having a Bad Year. Why It’s Today’s Top Performer in the S&P 500.
• Positive Sentiment: Needham & Company reaffirmed a Buy rating and raised its price target to $700, while Deutsche Bank also lifted its target to $660, signaling continued analyst confidence in AppLovin’s growth story. Benzinga report on Needham rating
• Positive Sentiment: The company’s recent earnings results were strong, with revenue up 58.9% year over year and both EPS and revenue beating expectations, supporting the bullish case for the stock. AppLovin stock overview
• Neutral Sentiment: A Zacks comparison piece said Coherent may be better positioned than APP due to valuation concerns, which highlights that AppLovin’s premium pricing remains a debate among investors. Coherent vs. AppLovin: Which AI Growth Stock is Better Positioned?
• Negative Sentiment: Recent SEC filings show CTO Vasily Shikin sold shares, which can create some caution around insider sentiment even though the sales were small relative to his remaining stake. SEC filing for insider sale

Analyst Upgrades and Downgrades

Several analysts recently commented on the stock. Evercore reiterated a “buy” rating on shares of AppLovin in a research report on Friday, January 30th. BTIG Research reissued a “buy” 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. Zacks Research downgraded shares of AppLovin from a “strong-buy” rating to a “hold” rating in a research note on Thursday, February 12th. Finally, Wells Fargo & Company raised their price target on AppLovin from $560.00 to $571.00 and gave the stock an “overweight” rating in a report on Thursday, May 7th. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $664.35.

AppLovin Price Performance

The company has a quick ratio of 3.24, a current ratio of 3.24 and a debt-to-equity ratio of 1.49. The stock has a fifty day moving average of $453.17 and a two-hundred day moving average of $521.05. The stock has a market cap of $201.53 billion, a price-to-earnings ratio of 51.54, a price-to-earnings-growth ratio of 0.92 and a beta of 2.37.

AppLovin (NASDAQ:APP) last posted its quarterly earnings results on Wednesday, May 6th. The company reported $3.56 earnings per share for the quarter, topping analysts’ consensus estimates of $3.44 by $0.12. AppLovin had a net margin of 64.29% and a return on equity of 219.37%. The business had revenue of $1.84 billion for the quarter, compared to analysts’ expectations of $1.77 billion. During the same period in the prior year, the company posted $1.67 EPS. The business’s revenue for the quarter was up 58.9% on a year-over-year basis. On average, equities research analysts anticipate that AppLovin Corporation will post 15.86 earnings per share for the current year.

Insider Activity

In related news, CEO Arash Adam Foroughi sold 40,704 shares of the firm’s stock in a transaction that occurred on Thursday, March 12th. The stock was sold at an average price of $459.85, for a total value of $18,717,734.40. Following the completion of the transaction, the chief executive officer directly owned 2,430,414 shares of the company’s stock, valued at $1,117,625,877.90. This trade represents a 1.65% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CTO Vasily Shikin sold 2,889 shares of the business’s stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $488.90, for a total value of $1,412,432.10. Following the sale, the chief technology officer owned 17,945 shares in the company, valued at approximately $8,773,310.50. The trade was a 13.87% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 454,964 shares of company stock worth $213,046,785. Company insiders own 13.66% of the company’s stock.

Institutional Investors Weigh In On AppLovin

Large investors have recently added to or reduced their stakes in the business. Cassaday & Co Wealth Management LLC acquired a new stake in shares of AppLovin in the first quarter valued at approximately $25,000. Board of the Pension Protection Fund acquired a new position in shares of AppLovin during the 4th quarter worth approximately $27,000. Washington Trust Advisors Inc. raised its position in shares of AppLovin by 160.0% during the 4th quarter. Washington Trust Advisors Inc. now owns 39 shares of the company’s stock worth $27,000 after purchasing an additional 24 shares during the last quarter. Mcguire Capital Advisors Inc. purchased a new stake in AppLovin in the 4th quarter valued at approximately $27,000. Finally, Chilton Capital Management LLC acquired a new stake in AppLovin during the 3rd quarter valued at $29,000. 41.85% of the stock is owned by institutional investors and hedge funds.

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.