AppLovin (NASDAQ:APP) Trading 7.5% Higher – Should You Buy?

AppLovin Corporation (NASDAQ:APP) was up 7.5% during trading on Friday . The company traded as high as $482.31 and last traded at $479.5590. Approximately 1,538,797 shares were traded during mid-day trading, a decline of 72% from the average session volume of 5,505,304 shares. The stock had previously closed at $445.93.

Analyst Ratings Changes

A number of equities research analysts have weighed in on the stock. BTIG Research reiterated a “buy” rating and set a $640.00 price target on shares of AppLovin in a research report on Thursday, May 7th. UBS Group decreased their price objective on shares of AppLovin from $740.00 to $716.00 and set a “buy” rating on the stock in a report on Thursday, May 7th. Wells Fargo & Company increased their price objective on shares of AppLovin from $560.00 to $571.00 and gave the stock an “overweight” rating in a research report on Thursday, May 7th. Piper Sandler reiterated an “overweight” rating on shares of AppLovin in a report on Tuesday, June 9th. Finally, Wedbush restated an “outperform” rating and set a $640.00 price target on shares of AppLovin in a research note on Thursday, May 7th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and five have issued a Hold rating to the company’s stock. According to MarketBeat, AppLovin currently has a consensus rating of “Moderate Buy” and an average price target of $669.62.

AppLovin Price Performance

The firm has a market cap of $161.28 billion, a price-to-earnings ratio of 41.17, a PEG ratio of 0.76 and a beta of 2.45. The company has a quick ratio of 3.24, a current ratio of 3.24 and a debt-to-equity ratio of 1.49. The company’s 50-day moving average price is $496.75 and its 200-day moving average price is $511.12.

AppLovin (NASDAQ:APP) last posted its quarterly earnings data on Wednesday, May 6th. The company reported $3.56 EPS for the quarter, beating the consensus estimate of $3.44 by $0.12. The business had revenue of $1.84 billion during the quarter, compared to analyst estimates of $1.77 billion. AppLovin had a net margin of 64.29% and a return on equity of 219.37%. The business’s revenue for the quarter was up 58.9% compared to the same quarter last year. During the same quarter last year, the firm posted $1.67 earnings per share. On average, equities research analysts forecast that AppLovin Corporation will post 15.86 EPS for the current year.

Insider Buying and Selling

In other AppLovin news, CTO Vasily Shikin sold 62,804 shares of the business’s stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $484.42, for a total value of $30,423,513.68. Following the completion of the transaction, the chief technology officer owned 3,189,739 shares in the company, valued at $1,545,173,366.38. The trade was a 1.93% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, CFO Matthew Stumpf sold 9,052 shares of the company’s stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $600.00, for a total value of $5,431,200.00. Following the sale, the chief financial officer directly owned 177,450 shares in the company, valued at $106,470,000. This represents a 4.85% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 389,924 shares of company stock worth $195,693,875 over the last three months. 13.66% of the stock is owned by insiders.

Institutional Investors Weigh In On AppLovin

Several large investors have recently bought and sold shares of the stock. Washington Trust Advisors Inc. boosted its stake in shares of AppLovin by 160.0% in the 4th quarter. Washington Trust Advisors Inc. now owns 39 shares of the company’s stock valued at $27,000 after buying an additional 24 shares during the period. Board of the Pension Protection Fund purchased a new stake in shares of AppLovin during the fourth quarter worth approximately $27,000. Mcguire Capital Advisors Inc. purchased a new stake in shares of AppLovin during the fourth quarter worth approximately $27,000. Laurel Wealth Advisors LLC purchased a new position in AppLovin in the fourth quarter worth approximately $32,000. Finally, Graney & King LLC purchased a new position in AppLovin in the third quarter worth approximately $36,000. Hedge funds and other institutional investors own 41.85% of the company’s stock.

AppLovin Company Profile

AppLovin Corporation is a Palo Alto–based mobile technology company that provides software and services to help app developers grow and monetize their businesses. The company operates a data-driven advertising and marketing platform that connects app publishers and advertisers, delivering tools for user acquisition, monetization, analytics and creative optimization. AppLovin’s technology is integrated into a broad set of mobile applications through software development kits (SDKs) and ad products designed to maximize revenue and engagement for developers.

Key components of AppLovin’s offering include an ad mediation and exchange platform that enables publishers to manage and monetize inventory across multiple demand sources, and a user-acquisition platform that helps advertisers target and scale campaigns.