AppLovin (NASDAQ:APP) Trading 7.6% Higher After Analyst Upgrade

AppLovin Corporation (NASDAQ:APP) was up 7.6% during mid-day trading on Tuesday after Wedbush raised their price target on the stock from $725.00 to $745.00. Wedbush currently has an outperform rating on the stock. AppLovin traded as high as $644.47 and last traded at $631.85. Approximately 11,744,298 shares changed hands during trading, an increase of 57% from the average daily volume of 7,497,407 shares. The stock had previously closed at $587.00.

A number of other research analysts have also weighed in on the stock. Citigroup raised their price objective on shares of AppLovin from $600.00 to $850.00 and gave the company a “buy” rating in a research note on Wednesday, October 1st. Bank of America raised their price objective on shares of AppLovin from $580.00 to $860.00 and gave the company a “buy” rating in a research note on Wednesday, October 1st. 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 note on Thursday, August 7th. Jefferies Financial Group raised their price objective on shares of AppLovin from $560.00 to $615.00 and gave the company a “buy” rating in a research note on Friday, September 5th. Finally, Piper Sandler raised their price objective on shares of AppLovin from $500.00 to $740.00 and gave the company an “overweight” rating in a research note on Friday, September 26th. Two investment analysts have rated the stock with a Strong Buy rating, twenty have given a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $579.81.

Insider Activity

In other news, CEO Arash Adam Foroughi sold 26,200 shares of the stock in a transaction dated Friday, August 22nd. The shares were sold at an average price of $440.23, for a total value of $11,534,026.00. Following the completion of the sale, the chief executive officer owned 2,590,054 shares in the company, valued at $1,140,219,472.42. This represents a 1.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Victoria Valenzuela sold 35,000 shares of the stock in a transaction dated Thursday, September 4th. The shares were sold at an average price of $502.23, for a total transaction of $17,578,050.00. Following the completion of the sale, the insider owned 269,955 shares of the company’s stock, valued at approximately $135,579,499.65. This represents a 11.48% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 1,156,788 shares of company stock worth $514,863,333. Company insiders own 13.66% of the company’s stock.

Institutional Trading of AppLovin

Large investors have recently added to or reduced their stakes in the stock. Kingswood Wealth Advisors LLC increased its holdings in AppLovin by 5.1% during the first quarter. Kingswood Wealth Advisors LLC now owns 1,663 shares of the company’s stock worth $445,000 after buying an additional 80 shares during the last quarter. Wealth Enhancement Advisory Services LLC increased its holdings in AppLovin by 62.7% during the first quarter. Wealth Enhancement Advisory Services LLC now owns 172,378 shares of the company’s stock worth $45,675,000 after buying an additional 66,453 shares during the last quarter. Park Avenue Securities LLC increased its holdings in AppLovin by 30.6% during the second quarter. Park Avenue Securities LLC now owns 20,890 shares of the company’s stock worth $7,313,000 after buying an additional 4,890 shares during the last quarter. Yousif Capital Management LLC increased its holdings in AppLovin by 3.5% during the first quarter. Yousif Capital Management LLC now owns 3,544 shares of the company’s stock worth $939,000 after buying an additional 119 shares during the last quarter. Finally, IFM Investors Pty Ltd increased its holdings in AppLovin by 15.6% during the second quarter. IFM Investors Pty Ltd now owns 45,209 shares of the company’s stock worth $15,827,000 after buying an additional 6,104 shares during the last quarter. Hedge funds and other institutional investors own 41.85% of the company’s stock.

AppLovin Price Performance

The business’s fifty day moving average is $524.30 and its 200-day moving average is $395.61. The company has a debt-to-equity ratio of 3.01, a current ratio of 2.74 and a quick ratio of 2.74. The firm has a market cap of $213.72 billion, a PE ratio of 89.75, a P/E/G ratio of 3.22 and a beta of 2.53.

AppLovin (NASDAQ:APP) last posted its earnings results on Wednesday, August 6th. The company reported $2.26 earnings per share for the quarter, topping the consensus estimate of $2.05 by $0.21. The firm had revenue of $1.26 billion during the quarter, compared to the consensus estimate of $1.37 billion. AppLovin had a net margin of 45.72% and a return on equity of 252.67%. The company’s revenue was up 77.1% on a year-over-year basis. During the same quarter last year, the company earned $0.89 earnings per share. On average, research analysts predict that AppLovin Corporation will post 6.87 earnings per share for the current fiscal year.

About AppLovin

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.