AppLovin (NASDAQ:APP) Shares Up 3.1% – Still a Buy?

AppLovin Corporation (NASDAQ:APP)’s stock price shot up 3.1% during trading on Thursday . The company traded as high as $317.66 and last traded at $314.49. Approximately 4,719,787 shares were traded during mid-day trading, a decline of 17% from the average session volume of 5,656,496 shares. The stock had previously closed at $305.06.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on APP shares. Piper Sandler decreased their price target on shares of AppLovin from $385.00 to $325.00 and set a “neutral” rating for the company in a research note on Friday, August 21st. Morgan Stanley reduced their target price on AppLovin from $720.00 to $650.00 and set an “overweight” rating for the company in a research note on Thursday, August 6th. Needham & Company LLC decreased their target price on AppLovin from $500.00 to $475.00 and set a “buy” rating for the company in a research report on Wednesday, August 26th. Phillip Securities raised AppLovin from a “moderate buy” rating to a “strong-buy” rating in a research note on Tuesday, August 11th. Finally, Royal Bank Of Canada decreased their price objective on AppLovin from $700.00 to $575.00 and set an “outperform” rating for the company in a report on Thursday, August 6th. Three investment analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eight have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, AppLovin presently has an average rating of “Moderate Buy” and a consensus target price of $538.09.

AppLovin Price Performance

The firm has a market cap of $105.24 billion, a price-to-earnings ratio of 24.17, a P/E/G ratio of 0.66 and a beta of 2.49. The company has a debt-to-equity ratio of 1.11, a quick ratio of 4.30 and a current ratio of 4.30. The business has a 50 day simple moving average of $381.77 and a 200-day simple moving average of $438.82.

AppLovin (NASDAQ:APP) last issued its quarterly earnings data on Tuesday, August 4th. The company reported $3.76 EPS for the quarter, hitting the consensus estimate of $3.76. AppLovin had a return on equity of 193.10% and a net margin of 64.58%.The firm had revenue of $1.92 billion during the quarter, compared to the consensus estimate of $1.94 billion. During the same period in the prior year, the business posted $2.39 earnings per share. The company’s quarterly revenue was up 52.8% compared to the same quarter last year. Equities research analysts expect that AppLovin Corporation will post 15.53 earnings per share for the current year.

Insider Buying and Selling

In related news, CEO Arash Foroughi sold 19,123 shares of the stock in a transaction on Friday, June 12th. The stock was sold at an average price of $482.02, for a total value of $9,217,668.46. Following the completion of the sale, the chief executive officer directly owned 2,350,228 shares of the company’s stock, valued at approximately $1,132,856,900.56. This represents a 0.81% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director G Jr sold 3,076 shares of the firm’s stock in a transaction on Monday, July 6th. The shares were sold at an average price of $521.29, for a total value of $1,603,488.04. Following the transaction, the director owned 120,444 shares in the company, valued at approximately $62,786,252.76. This trade represents a 2.49% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 208,653 shares of company stock worth $104,600,460. 12.81% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On AppLovin

Institutional investors have recently modified their holdings of the business. Signature Estate & Investment Advisors LLC raised its stake in AppLovin by 3,695.3% in the second quarter. Signature Estate & Investment Advisors LLC now owns 76,361 shares of the company’s stock valued at $39,345,000 after purchasing an additional 74,349 shares in the last quarter. Insight Wealth Strategies LLC bought a new stake in AppLovin in the second quarter worth $6,939,000. Generate Investment Management Ltd purchased a new stake in AppLovin during the 2nd quarter valued at about $7,226,000. Asset Management One Co. Ltd. boosted its stake in shares of AppLovin by 6.5% during the second quarter. Asset Management One Co. Ltd. now owns 105,909 shares of the company’s stock valued at $54,567,000 after purchasing an additional 6,424 shares during the period. Finally, Nykredit A S purchased a new stake in AppLovin during the 2nd quarter valued at $41,902,000. 41.85% of the stock is owned by institutional investors.

AppLovin Company Profile

AppLovin Corporation (NASDAQ: APP) is a technology company that provides software and services designed to help mobile application developers grow their businesses. Its platform supports user acquisition, advertising, monetization, measurement and other functions that enable developers to attract users and generate revenue from their applications.

AppLovin’s offerings include AXON, an artificial-intelligence-powered software engine used to optimize advertising and user-acquisition campaigns; MAX, a platform for managing in-app advertising and mediation; and AppDiscovery, which helps developers promote their applications.