AppLovin (NASDAQ:APP) Trading 2.2% Higher – Still a Buy?

AppLovin Corporation (NASDAQ:APP)’s stock price shot up 2.2% during trading on Friday . The company traded as high as $323.80 and last traded at $320.56. Approximately 3,749,801 shares were traded during trading, a decline of 34% from the average daily volume of 5,681,902 shares. The stock had previously closed at $313.58.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on the stock. Benchmark cut their price target on shares of AppLovin from $500.00 to $440.00 and set a “buy” rating on the stock in a report on Monday, August 17th. KeyCorp set a $775.00 price objective on AppLovin in a report on Wednesday, June 10th. Citigroup lowered their price objective on AppLovin from $710.00 to $650.00 and set a “buy” rating for the company in a research report on Friday, August 7th. BTIG Research dropped their target price on AppLovin from $574.00 to $408.00 and set a “buy” rating on the stock in a research note on Wednesday, August 12th. Finally, Evercore reaffirmed an “outperform” rating and set a $510.00 target price on shares of AppLovin in a research report on Tuesday. Three equities research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eight have assigned a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $538.61.

AppLovin Stock Performance

The firm’s 50 day simple moving average is $397.72 and its 200 day simple moving average is $441.12. The firm has a market capitalization of $107.28 billion, a price-to-earnings ratio of 24.64, a PEG ratio of 0.67 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.

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

Insiders Place Their Bets

In other news, Director Eduardo Vivas sold 163,910 shares of the firm’s stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $504.06, for a total transaction of $82,620,474.60. Following the sale, the director owned 6,785,087 shares of the company’s stock, valued at $3,420,090,953.22. This trade represents a 2.36% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director G Jr sold 3,076 shares of AppLovin stock in a transaction that occurred on Monday, July 6th. The shares were sold at an average price of $521.29, for a total transaction of $1,603,488.04. Following the transaction, the director directly owned 120,444 shares of the company’s stock, valued at approximately $62,786,252.76. This trade represents a 2.49% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 271,152 shares of company stock worth $135,295,830. Corporate insiders own 12.81% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Parkside Financial Bank & Trust boosted its stake in shares of AppLovin by 142.9% during the 2nd quarter. Parkside Financial Bank & Trust now owns 2,840 shares of the company’s stock worth $1,463,000 after acquiring an additional 1,671 shares in the last quarter. Second Line Capital LLC grew its position in shares of AppLovin by 0.8% during the 2nd quarter. Second Line Capital LLC now owns 21,752 shares of the company’s stock valued at $11,207,000 after acquiring an additional 167 shares during the period. Range Advisory LLC purchased a new position in shares of AppLovin in the 2nd quarter valued at about $435,000. Formuepleje A S acquired a new position in AppLovin in the 2nd quarter worth about $725,000. Finally, Tucker Asset Management LLC purchased a new position in AppLovin during the second quarter worth approximately $449,000. Institutional investors and hedge funds own 41.85% of the company’s stock.

About AppLovin

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.