AppLovin (NASDAQ:APP) Trading Up 13% on Strong Earnings

AppLovin Corporation (NASDAQ:APP)’s stock price was up 13% during trading on Thursday following a stronger than expected earnings report. The stock traded as high as $453.76 and last traded at $441.34. Approximately 12,846,509 shares traded hands during mid-day trading, an increase of 80% from the average daily volume of 7,154,347 shares. The stock had previously closed at $390.57.

The company reported $2.26 EPS for the quarter, beating analysts’ consensus estimates of $2.05 by $0.21. AppLovin had a net margin of 45.72% and a return on equity of 274.45%. The company had revenue of $1.26 billion during the quarter, compared to analyst estimates of $1.37 billion. During the same period last year, the business earned $0.89 earnings per share. AppLovin’s revenue was up 77.1% compared to the same quarter last year.

Analyst Ratings Changes

A number of equities analysts have recently commented on APP shares. JPMorgan Chase & Co. raised their price objective on shares of AppLovin from $400.00 to $425.00 and gave the company a “neutral” rating in a research report on Thursday. Piper Sandler raised their price objective on shares of AppLovin from $470.00 to $500.00 and gave the company an “overweight” rating in a research report on Thursday. Wall Street Zen upgraded shares of AppLovin from a “hold” rating to a “buy” rating in a research report on Saturday, July 26th. Wells Fargo & Company raised their price objective on shares of AppLovin from $405.00 to $480.00 and gave the company an “overweight” rating in a research report on Thursday. Finally, Scotiabank raised their price objective on shares of AppLovin from $430.00 to $450.00 and gave the company a “sector outperform” rating in a research report on Thursday. One equities research analyst has rated the stock with a sell rating, three have given a hold rating, nineteen have issued a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $472.33.

Insider Activity

In other news, Director Dawson Alyssa Harvey sold 513 shares of the business’s stock in a transaction on Friday, June 6th. The shares were sold at an average price of $420.30, for a total transaction of $215,613.90. Following the sale, the director owned 3,451 shares in the company, valued at approximately $1,450,455.30. The trade was a 12.94% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Barbara Messing sold 1,500 shares of the company’s stock in a transaction dated Wednesday, June 11th. The shares were sold at an average price of $382.46, for a total transaction of $573,690.00. Following the transaction, the director owned 9,510 shares in the company, valued at $3,637,194.60. This represents a 13.62% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 1,212,968 shares of company stock worth $455,062,980. 13.66% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On AppLovin

Several hedge funds and other institutional investors have recently added to or reduced their stakes in APP. Revolve Wealth Partners LLC purchased a new stake in AppLovin in the 4th quarter worth approximately $294,000. Wedbush Securities Inc. purchased a new stake in AppLovin in the 4th quarter worth approximately $236,000. Quadrant Capital Group LLC increased its holdings in AppLovin by 6.7% in the 4th quarter. Quadrant Capital Group LLC now owns 526 shares of the company’s stock worth $170,000 after acquiring an additional 33 shares in the last quarter. FIL Ltd grew its holdings in AppLovin by 172.8% during the 4th quarter. FIL Ltd now owns 159,750 shares of the company’s stock valued at $51,732,000 after buying an additional 101,180 shares in the last quarter. Finally, Bank of Nova Scotia grew its holdings in AppLovin by 14.5% during the 4th quarter. Bank of Nova Scotia now owns 4,470 shares of the company’s stock valued at $1,448,000 after buying an additional 565 shares in the last quarter. 41.85% of the stock is owned by hedge funds and other institutional investors.

AppLovin Stock Performance

The company has a debt-to-equity ratio of 6.10, a quick ratio of 1.68 and a current ratio of 1.68. The business’s fifty day simple moving average is $365.28 and its 200-day simple moving average is $339.24. The firm has a market capitalization of $147.99 billion, a PE ratio of 62.12, a price-to-earnings-growth ratio of 2.33 and a beta of 2.43.

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.