AppLovin (NASDAQ:APP) Trading 1.1% Higher – What’s Next?

AppLovin Corporation (NASDAQ:APP)’s share price traded up 1.1% during mid-day trading on Wednesday . The stock traded as high as $315.34 and last traded at $310.79. 4,385,302 shares were traded during mid-day trading, a decline of 24% from the average daily volume of 5,772,358 shares. The stock had previously closed at $307.26.

Analyst Ratings Changes

A number of research firms recently commented on APP. Wells Fargo & Company dropped their target price on shares of AppLovin from $357.00 to $325.00 and set an “equal weight” rating on the stock in a research report on Wednesday. UBS Group decreased their price objective on shares of AppLovin from $798.00 to $790.00 and set a “buy” rating for the company in a research note on Thursday, August 6th. BTIG Research dropped their price objective on AppLovin from $574.00 to $408.00 and set a “buy” rating on the stock in a report on Wednesday, August 12th. Royal Bank Of Canada cut their target price on AppLovin from $700.00 to $575.00 and set an “outperform” rating on the stock in a research report on Thursday, August 6th. Finally, Needham & Company LLC reduced their target price on AppLovin from $700.00 to $500.00 and set a “buy” rating for the company in a report on Thursday, August 6th. Three investment analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eight have given a Hold rating to the stock. According to data from MarketBeat.com, AppLovin presently has an average rating of “Moderate Buy” and a consensus target price of $553.83.

AppLovin Stock Performance

The stock has a market cap of $102.33 billion, a PE ratio of 23.50, a P/E/G ratio of 0.62 and a beta of 2.54. The firm’s 50-day moving average is $431.50 and its 200 day moving average is $449.24. 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) last issued its quarterly earnings data on Tuesday, August 4th. The company reported $3.76 earnings per share (EPS) for the quarter, hitting the consensus estimate of $3.76. The company had revenue of $1.92 billion for the quarter, compared to the consensus estimate of $1.94 billion. AppLovin had a net margin of 64.58% and a return on equity of 193.10%. AppLovin’s revenue for the quarter was up 52.8% on a year-over-year basis. During the same period last year, the firm posted $2.39 EPS. As a group, research analysts anticipate that AppLovin Corporation will post 15.57 EPS for the current year.

Insider Activity

In related news, CFO Matthew Stumpf sold 9,052 shares of the firm’s stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $600.00, for a total transaction of $5,431,200.00. Following the transaction, the chief financial officer owned 177,450 shares of the company’s stock, valued at $106,470,000. This trade represents a 4.85% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CEO Arash Adam Foroughi sold 33,042 shares of the company’s stock in a transaction that occurred on 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 sale, the chief executive officer directly owned 2,369,351 shares of the company’s stock, valued at approximately $1,153,755,469.45. This represents a 1.38% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 303,280 shares of company stock valued at $153,835,185. Insiders own 12.81% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. Signature Estate & Investment Advisors LLC lifted its holdings in shares of AppLovin by 3,695.3% in the second quarter. Signature Estate & Investment Advisors LLC now owns 76,361 shares of the company’s stock valued at $39,345,000 after purchasing an additional 74,349 shares in the last quarter. Insight Wealth Strategies LLC bought a new stake in AppLovin during the second quarter worth $6,939,000. Calamos Advisors LLC raised its position in AppLovin by 73.3% in the 4th quarter. Calamos Advisors LLC now owns 48,737 shares of the company’s stock valued at $32,840,000 after buying an additional 20,609 shares during the last quarter. Generate Investment Management Ltd purchased a new stake in AppLovin in the 2nd quarter valued at $7,226,000. Finally, Fifth Third Bancorp lifted its stake in AppLovin by 312.0% during the 4th quarter. Fifth Third Bancorp now owns 6,123 shares of the company’s stock valued at $4,126,000 after acquiring an additional 4,637 shares in the last quarter. 41.85% of the stock is 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.