AppLovin’s (APP) Outperform Rating Reiterated at Royal Bank Of Canada

AppLovin (NASDAQ:APP)‘s stock had its “outperform” rating reiterated by Royal Bank Of Canada in a research note issued to investors on Thursday,Benzinga reports. They currently have a $700.00 price target on the stock. Royal Bank Of Canada’s target price would indicate a potential upside of 86.71% from the company’s previous close.

A number of other equities analysts have also issued reports on APP. Evercore reiterated a “buy” rating on shares of AppLovin in a research report on Friday, January 30th. Needham & Company LLC reiterated a “buy” rating and issued a $700.00 price objective on shares of AppLovin in a report on Thursday. UBS Group set a $740.00 target price on AppLovin in a report on Thursday. Weiss Ratings downgraded AppLovin from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Thursday, January 15th. Finally, The Goldman Sachs Group lowered their price target on AppLovin from $710.00 to $585.00 and set a “neutral” rating on the stock in a research report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $656.77.

AppLovin Trading Down 17.9%

Shares of APP traded down $81.90 during trading hours on Thursday, hitting $374.91. The stock had a trading volume of 10,198,662 shares, compared to its average volume of 6,634,069. AppLovin has a 12-month low of $200.50 and a 12-month high of $745.61. The firm has a market cap of $126.70 billion, a P/E ratio of 45.50, a P/E/G ratio of 1.56 and a beta of 2.49. The company has a debt-to-equity ratio of 2.38, a quick ratio of 3.25 and a current ratio of 3.25. The company’s fifty day simple moving average is $608.86 and its 200 day simple moving average is $571.60.

AppLovin (NASDAQ:APP) last released its quarterly earnings data on Wednesday, February 11th. The company reported $3.24 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.89 by $0.35. The company had revenue of $1.66 billion during the quarter, compared to analyst estimates of $1.61 billion. AppLovin had a net margin of 51.27% and a return on equity of 258.49%. The business’s quarterly revenue was up 66.0% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.73 earnings per share. Equities research analysts forecast that AppLovin will post 6.87 EPS for the current fiscal year.

Insider Buying and Selling

In related news, insider Victoria Valenzuela sold 7,609 shares of the stock in a transaction that occurred on Thursday, December 18th. The shares were sold at an average price of $657.13, for a total transaction of $5,000,102.17. Following the completion of the sale, the insider owned 277,110 shares of the company’s stock, valued at $182,097,294.30. This represents a 2.67% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CTO Vasily Shikin sold 14,708 shares of AppLovin stock in a transaction on Monday, November 24th. The stock was sold at an average price of $548.45, for a total transaction of $8,066,602.60. Following the completion of the transaction, the chief technology officer directly owned 35,889 shares in the company, valued at $19,683,322.05. This represents a 29.07% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 187,786 shares of company stock worth $100,914,925 in the last three months. 13.66% of the stock is owned by company insiders.

Institutional Investors Weigh In On AppLovin

Several institutional investors and hedge funds have recently made changes to their positions in the stock. CBIZ Investment Advisory Services LLC lifted its holdings in shares of AppLovin by 58.6% in the 3rd quarter. CBIZ Investment Advisory Services LLC now owns 46 shares of the company’s stock valued at $33,000 after buying an additional 17 shares during the period. Redhawk Wealth Advisors Inc. lifted its holdings in AppLovin by 2.9% in the fourth quarter. Redhawk Wealth Advisors Inc. now owns 640 shares of the company’s stock valued at $431,000 after acquiring an additional 18 shares during the period. Verdence Capital Advisors LLC boosted its position in AppLovin by 5.7% in the 4th quarter. Verdence Capital Advisors LLC now owns 333 shares of the company’s stock worth $224,000 after purchasing an additional 18 shares in the last quarter. Versant Capital Management Inc boosted its position in AppLovin by 2.8% in the 3rd quarter. Versant Capital Management Inc now owns 701 shares of the company’s stock worth $504,000 after purchasing an additional 19 shares in the last quarter. Finally, Claro Advisors LLC grew its stake in shares of AppLovin by 3.2% during the 3rd quarter. Claro Advisors LLC now owns 647 shares of the company’s stock worth $465,000 after purchasing an additional 20 shares during the period. 41.85% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting AppLovin

Here are the key news stories impacting AppLovin this week:

• Positive Sentiment: Q4 results beat and strong margin profile — AppLovin reported $3.24 EPS (vs. $2.89 consensus) and $1.66B revenue (vs. ~$1.61B consensus), and issued revenue guidance above Street expectations, which on the face of it supports upside. Read More.
• Positive Sentiment: Several analysts reaffirmed or raised ratings/targets — Scotiabank bumped its target to $775 (sector outperform) and Wedbush raised its target to $640; Needham kept a buy at $700. These are bullish endorsements that signal continued analyst confidence from some firms. Read More.
• Neutral Sentiment: Mixed analyst adjustments — Piper Sandler reaffirmed an “overweight” rating but trimmed its target to $650, and BTIG cut its target to $640 while keeping a buy. These changes leave room for upside but show divergence among brokers. Read More.
• Neutral Sentiment: CEO commentary and narrative items — Management downplayed AI-related risks, which may calm some longer-term concerns but didn’t stop near-term selling. Read More.
• Negative Sentiment: Market focus on ad demand and competition — Several outlets highlighted tepid advertising demand and intensified competition; some reports framed revenue/growth as disappointing to the market despite beats, which likely triggered the selloff. Read More.
• Negative Sentiment: Notable target cuts and profit-taking — Wells Fargo cut its target to $543 (still overweight) and other firms trimmed targets from prior highs; after a strong run-up (and a recent short-seller retraction-driven bounce), that combination appears to have accelerated profit-taking and heavier selling volume. Read More.
• Negative Sentiment: Heavy intraday selling and elevated volume — Trade volume is well above average, indicating conviction behind the move rather than a light pullback; that can amplify downside in the near term. Read More.

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.