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

Shares of AppLovin Co. (NASDAQ:APP) gapped up prior to trading on Monday . The stock had previously closed at $314.03, but opened at $328.09. AppLovin shares last traded at $329.51, with a volume of 1,146,698 shares trading hands.

Analyst Ratings Changes

A number of research firms recently commented on APP. Loop Capital lifted their target price on AppLovin from $450.00 to $650.00 and gave the stock a “buy” rating in a report on Thursday, February 20th. Oppenheimer restated an “outperform” rating and set a $560.00 price objective (up from $480.00) on shares of AppLovin in a research note on Thursday, February 13th. Piper Sandler increased their price objective on shares of AppLovin from $400.00 to $575.00 and gave the stock an “overweight” rating in a research note on Thursday, February 13th. Benchmark boosted their target price on shares of AppLovin from $375.00 to $525.00 and gave the company a “buy” rating in a research report on Thursday, February 13th. Finally, Stifel Nicolaus upped their price target on shares of AppLovin from $250.00 to $435.00 and gave the company a “buy” rating in a report on Thursday, December 5th. One investment analyst has rated the stock with a sell rating, four have assigned a hold rating, fourteen have issued a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat, AppLovin has a consensus rating of “Moderate Buy” and a consensus price target of $438.28.

AppLovin Stock Performance

The company has a current ratio of 2.41, a quick ratio of 2.41 and a debt-to-equity ratio of 3.70. The firm’s fifty day moving average is $354.81 and its 200 day moving average is $280.21. The company has a market cap of $117.72 billion, a PE ratio of 76.28, a price-to-earnings-growth ratio of 3.02 and a beta of 2.33.

AppLovin (NASDAQ:APP) last released its earnings results on Wednesday, February 12th. The company reported $1.73 EPS for the quarter, topping analysts’ consensus estimates of $1.12 by $0.61. AppLovin had a net margin of 33.54% and a return on equity of 188.55%. As a group, research analysts predict that AppLovin Co. will post 6.87 EPS for the current fiscal year.

Insider Activity

In related news, CTO Vasily Shikin sold 17,500 shares of the stock in a transaction that occurred on Monday, March 10th. The stock was sold at an average price of $241.65, for a total value of $4,228,875.00. Following the completion of the sale, the chief technology officer now owns 88,389 shares of the company’s stock, valued at approximately $21,359,201.85. This trade represents a 16.53 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Arash Adam Foroughi sold 45,000 shares of the company’s stock in a transaction on Friday, February 21st. The shares were sold at an average price of $422.21, for a total value of $18,999,450.00. Following the completion of the sale, the chief executive officer now owns 2,914,492 shares of the company’s stock, valued at approximately $1,230,527,667.32. The trade was a 1.52 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 306,900 shares of company stock worth $106,401,841 over the last quarter. 14.69% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On AppLovin

A number of hedge funds have recently modified their holdings of the company. Pathstone Holdings LLC grew its position in AppLovin by 5.5% in the third quarter. Pathstone Holdings LLC now owns 19,866 shares of the company’s stock worth $2,594,000 after acquiring an additional 1,042 shares during the period. Advisors Asset Management Inc. increased its position in shares of AppLovin by 89.7% during the 3rd quarter. Advisors Asset Management Inc. now owns 681 shares of the company’s stock worth $89,000 after purchasing an additional 322 shares during the last quarter. Raymond James Trust N.A. raised its holdings in AppLovin by 25.8% in the 3rd quarter. Raymond James Trust N.A. now owns 3,279 shares of the company’s stock valued at $428,000 after buying an additional 672 shares during the period. Great Valley Advisor Group Inc. lifted its position in AppLovin by 2.2% in the third quarter. Great Valley Advisor Group Inc. now owns 2,837 shares of the company’s stock valued at $370,000 after buying an additional 60 shares during the last quarter. Finally, Cerity Partners LLC boosted its stake in AppLovin by 36.3% during the third quarter. Cerity Partners LLC now owns 18,120 shares of the company’s stock worth $2,366,000 after buying an additional 4,822 shares during the period. Hedge funds and other institutional investors own 41.85% of the company’s stock.

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.