AppLovin (NASDAQ:APP) Trading Up 3.1% – What’s Next?

AppLovin Co. (NASDAQ:APP) shot up 3.1% on Friday . The company traded as high as $346.61 and last traded at $342.24. 1,452,683 shares were traded during trading, a decline of 62% from the average session volume of 3,868,238 shares. The stock had previously closed at $332.01.

Analyst Ratings Changes

Several brokerages have recently weighed in on APP. Daiwa Capital Markets raised shares of AppLovin from a “neutral” rating to an “outperform” rating and boosted their price target for the company from $80.00 to $280.00 in a research report on Friday, November 8th. Wells Fargo & Company boosted their target price on shares of AppLovin from $360.00 to $366.00 and gave the company an “overweight” rating in a report on Monday. Stifel Nicolaus increased their price target on shares of AppLovin from $250.00 to $435.00 and gave the company a “buy” rating in a research note on Thursday, December 5th. Bank of America lifted their price target on shares of AppLovin from $252.00 to $375.00 and gave the company a “buy” rating in a research report on Monday, November 25th. Finally, Daiwa America upgraded AppLovin from a “hold” rating to a “strong-buy” rating in a research report on Friday, November 8th. Four equities research analysts have rated the stock with a hold rating, fourteen have assigned a buy rating and one has issued a strong buy rating to the company’s stock. Based on data from MarketBeat.com, AppLovin has an average rating of “Moderate Buy” and an average price target of $338.06.

AppLovin Stock Performance

The stock has a market capitalization of $115.42 billion, a PE ratio of 104.25, a price-to-earnings-growth ratio of 2.68 and a beta of 2.29. The company has a quick ratio of 2.41, a current ratio of 2.41 and a debt-to-equity ratio of 3.70. The stock has a fifty day moving average of $329.70 and a 200-day moving average of $186.54.

AppLovin (NASDAQ:APP) last announced its quarterly earnings data on Wednesday, November 6th. The company reported $1.25 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.92 by $0.33. AppLovin had a return on equity of 122.24% and a net margin of 26.85%. The business had revenue of $1.20 billion during the quarter, compared to analysts’ expectations of $1.13 billion. During the same quarter last year, the business posted $0.30 EPS. The business’s quarterly revenue was up 38.6% compared to the same quarter last year. Equities analysts anticipate that AppLovin Co. will post 4.06 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CMO Katie Kihorany Jansen sold 59,876 shares of AppLovin stock in a transaction on Tuesday, November 12th. The shares were sold at an average price of $286.14, for a total transaction of $17,132,918.64. Following the sale, the chief marketing officer now directly owns 1,017,388 shares in the company, valued at $291,115,402.32. This trade represents a 5.56 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Victoria Valenzuela sold 15,971 shares of the company’s stock in a transaction on Thursday, December 19th. The shares were sold at an average price of $313.07, for a total transaction of $5,000,040.97. Following the completion of the transaction, the insider now owns 372,205 shares of the company’s stock, valued at $116,526,219.35. This represents a 4.11 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 888,867 shares of company stock worth $284,773,062 in the last 90 days. Corporate insiders own 14.69% of the company’s stock.

Institutional Trading of AppLovin

A number of hedge funds and other institutional investors have recently made changes to their positions in APP. Capital Performance Advisors LLP acquired a new stake in shares of AppLovin in the third quarter valued at approximately $25,000. DT Investment Partners LLC purchased a new stake in AppLovin in the 3rd quarter valued at $27,000. Meeder Asset Management Inc. acquired a new stake in AppLovin during the 3rd quarter worth $27,000. Raleigh Capital Management Inc. purchased a new position in AppLovin during the 3rd quarter worth $29,000. Finally, Quest Partners LLC acquired a new position in AppLovin in the second quarter valued at $33,000. Institutional investors and hedge funds 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.