AppLovin (NASDAQ:APP) Shares Up 2.2% – Should You Buy?

AppLovin Co. (NASDAQ:APP) was up 2.2% during mid-day trading on Monday . The company traded as high as $362.45 and last traded at $358.39. Approximately 1,509,928 shares changed hands during trading, a decline of 57% from the average daily volume of 3,516,944 shares. The stock had previously closed at $350.65.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on APP. Loop Capital raised their price objective on shares of AppLovin from $385.00 to $450.00 and gave the stock a “buy” rating in a research note on Monday, December 16th. Piper Sandler assumed coverage on shares of AppLovin in a research report on Wednesday, November 20th. They set an “overweight” rating and a $400.00 price target on the stock. The Goldman Sachs Group cut shares of AppLovin from a “buy” rating to a “neutral” rating and lifted their price objective for the company from $103.00 to $150.00 in a report on Monday, October 14th. Benchmark reissued a “sell” rating and set a $66.00 target price on shares of AppLovin in a research note on Thursday, November 7th. Finally, Daiwa America upgraded AppLovin from a “hold” rating to a “strong-buy” rating in a research note on Friday, November 8th. One research analyst has rated the stock with a sell rating, four have assigned a hold rating, thirteen have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $312.18.

AppLovin Trading Down 0.2 %

The business has a 50-day simple moving average of $312.12 and a 200-day simple moving average of $177.04. The company has a market cap of $110.48 billion, a PE ratio of 99.76, a price-to-earnings-growth ratio of 4.17 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.

AppLovin (NASDAQ:APP) last issued its quarterly earnings results on Wednesday, November 6th. The company reported $1.25 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.92 by $0.33. AppLovin had a net margin of 26.85% and a return on equity of 122.24%. The company had revenue of $1.20 billion for the quarter, compared to analyst estimates of $1.13 billion. During the same period in the prior year, the firm earned $0.30 earnings per share. The business’s revenue for the quarter was up 38.6% compared to the same quarter last year. On average, analysts predict that AppLovin Co. will post 4.06 EPS for the current fiscal year.

Insider Activity

In other news, Director Craig Scott Billings sold 18,000 shares of the firm’s stock in a transaction dated Thursday, November 21st. The stock was sold at an average price of $318.94, for a total transaction of $5,740,920.00. Following the sale, the director now owns 2,987 shares of the company’s stock, valued at approximately $952,673.78. This trade represents a 85.77 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Arash Adam Foroughi sold 1,676 shares of the company’s stock in a transaction that occurred on Tuesday, December 10th. The shares were sold at an average price of $356.39, for a total value of $597,309.64. Following the completion of the transaction, the chief executive officer now directly owns 3,058,635 shares of the company’s stock, valued at $1,090,066,927.65. This trade represents a 0.05 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 888,867 shares of company stock worth $284,773,062. 14.69% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On AppLovin

Hedge funds have recently made changes to their positions in the company. Townsquare Capital LLC increased its holdings in shares of AppLovin by 64.9% in the 3rd quarter. Townsquare Capital LLC now owns 7,942 shares of the company’s stock valued at $1,037,000 after acquiring an additional 3,126 shares during the period. Second Half Financial Partners LLC acquired a new position in AppLovin in the third quarter valued at $224,000. State Street Corp raised its holdings in shares of AppLovin by 8.6% in the third quarter. State Street Corp now owns 5,388,023 shares of the company’s stock valued at $703,406,000 after buying an additional 428,419 shares during the last quarter. Eagle Asset Management Inc. boosted its stake in shares of AppLovin by 2,200.4% during the third quarter. Eagle Asset Management Inc. now owns 523,149 shares of the company’s stock worth $68,297,000 after buying an additional 500,407 shares during the period. Finally, Zacks Investment Management grew its holdings in shares of AppLovin by 328.1% during the third quarter. Zacks Investment Management now owns 106,121 shares of the company’s stock worth $13,854,000 after buying an additional 81,331 shares during the last quarter. 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.