AppLovin (NASDAQ:APP) Shares Up 0.7% – Should You Buy?

AppLovin Co. (NASDAQ:APP) rose 0.7% during mid-day trading on Monday . The company traded as high as $286.83 and last traded at $278.69. Approximately 2,462,187 shares traded hands during trading, a decline of 58% from the average daily volume of 5,872,145 shares. The stock had previously closed at $276.83.

Wall Street Analyst Weigh In

Several analysts have commented on the company. Needham & Company LLC reaffirmed a “hold” rating on shares of AppLovin in a research note on Monday, April 21st. Piper Sandler reduced their target price on AppLovin from $575.00 to $425.00 and set an “overweight” rating for the company in a report on Thursday, April 10th. Bank of America upped their target price on AppLovin from $375.00 to $580.00 and gave the company a “buy” rating in a report on Thursday, February 13th. Loop Capital reiterated a “buy” rating and set a $650.00 target price on shares of AppLovin in a report on Friday, March 28th. Finally, Jefferies Financial Group boosted their price objective on shares of AppLovin from $400.00 to $425.00 and gave the company a “buy” rating in a research report on Wednesday, January 8th. One equities research analyst has rated the stock with a sell rating, three have issued a hold rating, sixteen have issued a buy rating and one has assigned a strong buy rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $414.05.

AppLovin Price Performance

The company has a market cap of $95.82 billion, a price-to-earnings ratio of 61.86, a P/E/G ratio of 3.02 and a beta of 2.39. The company has a debt-to-equity ratio of 3.70, a quick ratio of 2.41 and a current ratio of 2.41. The company’s 50 day moving average price is $291.16 and its 200 day moving average price is $302.14.

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

Insider Transactions at AppLovin

In other AppLovin news, CEO Arash Adam Foroughi sold 45,000 shares of the firm’s stock in a transaction that occurred on Friday, February 21st. The shares were sold at an average price of $422.21, for a total transaction of $18,999,450.00. Following the sale, the chief executive officer now directly owns 2,914,492 shares in the company, valued at approximately $1,230,527,667.32. This trade represents a 1.52 % decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Herald Y. Chen sold 200,000 shares of the firm’s stock in a transaction on Friday, February 28th. The stock was sold at an average price of $324.65, for a total transaction of $64,930,000.00. Following the sale, the director now owns 621,209 shares in the company, valued at approximately $201,675,501.85. The trade was a 24.35 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 306,900 shares of company stock worth $106,401,841 in the last quarter. 14.69% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in APP. Oxinas Partners Wealth Management LLC acquired a new position in AppLovin during the fourth quarter worth $1,081,000. Virtu Financial LLC bought a new stake in shares of AppLovin in the 3rd quarter valued at about $3,211,000. Franchise Capital Ltd acquired a new stake in AppLovin in the 4th quarter valued at about $2,811,000. Barclays PLC grew its holdings in AppLovin by 92.5% during the third quarter. Barclays PLC now owns 318,992 shares of the company’s stock worth $41,643,000 after purchasing an additional 153,248 shares during the period. Finally, Tcfg Wealth Management LLC acquired a new position in AppLovin during the fourth quarter worth approximately $369,000. 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.