Wedbush Analysts Increase Earnings Estimates for AppLovin Co. (NYSE:APP)

AppLovin Co. (NYSE:APP) – Stock analysts at Wedbush boosted their Q1 2024 earnings per share estimates for shares of AppLovin in a research note issued to investors on Thursday, November 9th. Wedbush analyst N. Mckay now expects that the company will post earnings per share of $0.32 for the quarter, up from their prior forecast of $0.26. Wedbush currently has a “Outperform” rating and a $58.50 target price on the stock. The consensus estimate for AppLovin’s current full-year earnings is $0.79 per share. Wedbush also issued estimates for AppLovin’s Q2 2024 earnings at $0.33 EPS, Q3 2024 earnings at $0.34 EPS, Q4 2024 earnings at $0.37 EPS, Q1 2025 earnings at $0.30 EPS, Q2 2025 earnings at $0.30 EPS, Q3 2025 earnings at $0.31 EPS and FY2025 earnings at $1.26 EPS.

AppLovin (NYSE:APP) last released its quarterly earnings data on Wednesday, August 9th. The company reported $0.22 EPS for the quarter, topping analysts’ consensus estimates of $0.08 by $0.14. The company had revenue of $750.17 million for the quarter, compared to the consensus estimate of $724.41 million. AppLovin had a return on equity of 11.48% and a net margin of 3.46%. The company’s quarterly revenue was down 3.4% compared to the same quarter last year. During the same period last year, the business posted ($0.06) EPS.

Several other equities research analysts also recently commented on APP. DA Davidson raised their target price on AppLovin from $32.00 to $40.00 and gave the company a “buy” rating in a report on Friday, August 11th. Stifel Nicolaus raised their target price on AppLovin from $45.00 to $55.00 and gave the company a “buy” rating in a report on Thursday. Bank of America raised their target price on AppLovin from $41.00 to $57.00 and gave the company a “buy” rating in a report on Thursday, September 14th. Jefferies Financial Group upgraded AppLovin from a “hold” rating to a “buy” rating and raised their target price for the company from $20.00 to $50.00 in a report on Tuesday, August 22nd. Finally, Oppenheimer raised their target price on AppLovin from $25.00 to $45.00 in a report on Friday, August 11th. One research analyst has rated the stock with a sell rating, three have issued a hold rating and twelve have issued a buy rating to the company. According to MarketBeat.com, AppLovin currently has a consensus rating of “Moderate Buy” and a consensus price target of $44.00.

AppLovin Stock Performance

AppLovin stock opened at $43.79 on Friday. The company has a market cap of $15.23 billion, a price-to-earnings ratio of 145.97, a price-to-earnings-growth ratio of 2.51 and a beta of 1.83. The company has a debt-to-equity ratio of 2.67, a current ratio of 1.61 and a quick ratio of 2.87. AppLovin has a 12 month low of $9.14 and a 12 month high of $45.10. The stock’s 50-day moving average is $39.75 and its 200-day moving average is $31.77.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in APP. JPMorgan Chase & Co. boosted its position in AppLovin by 99.0% during the 1st quarter. JPMorgan Chase & Co. now owns 981 shares of the company’s stock valued at $54,000 after purchasing an additional 488 shares during the period. Raymond James & Associates raised its stake in AppLovin by 109.0% during the 1st quarter. Raymond James & Associates now owns 57,743 shares of the company’s stock valued at $3,180,000 after acquiring an additional 30,112 shares in the last quarter. Bank of New York Mellon Corp raised its stake in AppLovin by 21.6% during the 1st quarter. Bank of New York Mellon Corp now owns 39,124 shares of the company’s stock valued at $2,155,000 after acquiring an additional 6,942 shares in the last quarter. Cambridge Investment Research Advisors Inc. raised its stake in AppLovin by 43.5% during the 1st quarter. Cambridge Investment Research Advisors Inc. now owns 9,425 shares of the company’s stock valued at $519,000 after acquiring an additional 2,858 shares in the last quarter. Finally, Citigroup Inc. raised its stake in AppLovin by 802.0% during the 1st quarter. Citigroup Inc. now owns 22,749 shares of the company’s stock valued at $1,253,000 after acquiring an additional 20,227 shares in the last quarter. Institutional investors and hedge funds own 41.85% of the company’s stock.

Insider Transactions at AppLovin

In other news, major shareholder Denali Holdings L.P. Kkr sold 15,000,000 shares of AppLovin stock in a transaction that occurred on Monday, August 21st. The stock was sold at an average price of $36.85, for a total value of $552,750,000.00. Following the completion of the transaction, the insider now owns 4,570,327 shares in the company, valued at approximately $168,416,549.95. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. In related news, major shareholder Denali Holdings L.P. Kkr sold 15,000,000 shares of the business’s stock in a transaction that occurred on Monday, August 21st. The stock was sold at an average price of $36.85, for a total transaction of $552,750,000.00. Following the completion of the transaction, the insider now owns 4,570,327 shares in the company, valued at approximately $168,416,549.95. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Dawson Alyssa Harvey sold 922 shares of the business’s stock in a transaction that occurred on Monday, August 21st. The shares were sold at an average price of $38.51, for a total value of $35,506.22. Following the transaction, the director now owns 13,845 shares of the company’s stock, valued at approximately $533,170.95. The disclosure for this sale can be found here. In the last quarter, insiders sold 25,585,250 shares of company stock worth $946,944,090. 12.43% of the stock is currently owned by corporate insiders.

AppLovin Company Profile

AppLovin Corporation engages in building a software-based platform for mobile app developers to enhance the marketing and monetization of their apps in the United States and internationally. The company's software solutions include AppDiscovery, a marketing software solution, which matches advertiser demand with publisher supply through auctions; Adjust, an analytics platform that helps marketers grow their mobile apps with solutions for measuring, optimizing campaigns, and protecting user data; MAX, an in-app bidding software that optimizes the value of an app's advertising inventory by running a real-time competitive auction; and Wurl, a connected TV platform, which primarily distributes streaming video for content companies.