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

Shares of AppLovin Co. (NASDAQ:APP) rose 2.2% on Monday . The stock traded as high as $362.45 and last traded at $358.39. Approximately 1,509,928 shares were traded during mid-day 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 Analysts Forecast Growth

APP has been the topic of several analyst reports. Benchmark reiterated a “sell” rating and issued a $66.00 target price on shares of AppLovin in a research note on Thursday, November 7th. Wells Fargo & Company lifted their price target on AppLovin from $250.00 to $360.00 and gave the company an “overweight” rating in a research note on Wednesday, November 20th. Piper Sandler began coverage on AppLovin in a research note on Wednesday, November 20th. They issued an “overweight” rating and a $400.00 price target on the stock. Loop Capital lifted their price target on AppLovin from $385.00 to $450.00 and gave the company a “buy” rating in a research note on Monday, December 16th. Finally, Daiwa America upgraded AppLovin from a “hold” rating to a “strong-buy” rating in a research note on Friday, November 8th. One analyst has rated the stock with a sell rating, four have assigned a hold rating, thirteen have assigned a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $310.71.

AppLovin Stock Performance

The company has a market capitalization of $118.05 billion, a price-to-earnings ratio of 106.60, a PEG ratio of 4.17 and a beta of 2.28. The stock has a fifty day moving average price of $302.03 and a two-hundred day moving average price of $172.24. 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 released its earnings results on Wednesday, November 6th. The company reported $1.25 EPS for the quarter, beating the consensus estimate of $0.92 by $0.33. The firm had revenue of $1.20 billion during the quarter, compared to analyst estimates of $1.13 billion. AppLovin had a return on equity of 122.24% and a net margin of 26.85%. The business’s quarterly revenue was up 38.6% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.30 earnings per share. As a group, analysts forecast that AppLovin Co. will post 4.06 EPS for the current fiscal year.

Insider Activity at AppLovin

In other AppLovin news, CMO Katie Kihorany Jansen sold 59,876 shares of the company’s stock in a transaction dated Tuesday, November 12th. The stock was sold at an average price of $286.14, for a total transaction of $17,132,918.64. Following the completion of the sale, the chief marketing officer now directly owns 1,017,388 shares in the company, valued at $291,115,402.32. This represents a 5.56 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Dawson Alyssa Harvey sold 500 shares of the company’s stock in a transaction dated Friday, December 6th. The stock was sold at an average price of $406.27, for a total value of $203,135.00. Following the completion of the sale, the director now directly owns 6,684 shares of the company’s stock, valued at $2,715,508.68. The trade was a 6.96 % decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 888,867 shares of company stock worth $284,773,062. 14.69% of the stock is currently owned by insiders.

Institutional Investors Weigh In On AppLovin

Several institutional investors and hedge funds have recently modified their holdings of APP. CIBC Asset Management Inc boosted its position in shares of AppLovin by 141.4% in the second quarter. CIBC Asset Management Inc now owns 7,510 shares of the company’s stock worth $625,000 after buying an additional 4,399 shares during the period. Rhumbline Advisers boosted its holdings in AppLovin by 35.5% in the second quarter. Rhumbline Advisers now owns 327,798 shares of the company’s stock valued at $27,279,000 after purchasing an additional 85,886 shares during the last quarter. TD Asset Management Inc boosted its holdings in AppLovin by 6.1% in the second quarter. TD Asset Management Inc now owns 13,735 shares of the company’s stock valued at $1,143,000 after purchasing an additional 793 shares during the last quarter. National Bank of Canada FI boosted its holdings in AppLovin by 77.2% in the second quarter. National Bank of Canada FI now owns 964 shares of the company’s stock valued at $82,000 after purchasing an additional 420 shares during the last quarter. Finally, Private Advisor Group LLC boosted its holdings in AppLovin by 98.6% in the second quarter. Private Advisor Group LLC now owns 7,144 shares of the company’s stock valued at $595,000 after purchasing an additional 3,547 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.