BTIG Research Lowers AppLovin (NASDAQ:APP) Price Target to $408.00

AppLovin (NASDAQ:APP) had its price target dropped by analysts at BTIG Research from $574.00 to $408.00 in a research report issued to clients and investors on Wednesday, MarketBeat Ratings reports. The brokerage presently has a “buy” rating on the stock. BTIG Research’s target price suggests a potential upside of 28.03% from the company’s current price.

Several other brokerages also recently weighed in on APP. Citigroup reduced their price target on AppLovin from $710.00 to $650.00 and set a “buy” rating on the stock in a report on Friday, August 7th. Piper Sandler cut AppLovin from an “overweight” rating to a “neutral” rating and dropped their price objective for the company from $665.00 to $385.00 in a report on Thursday, August 6th. UBS Group cut their price objective on AppLovin from $798.00 to $790.00 and set a “buy” rating on the stock in a research report on Thursday, August 6th. KeyCorp set a $775.00 target price on AppLovin in a research note on Wednesday, June 10th. Finally, Phillip Securities upgraded AppLovin from a “moderate buy” rating to a “strong-buy” rating in a research report on Tuesday. Three 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 data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $565.91.

AppLovin Stock Performance

Shares of NASDAQ:APP opened at $318.68 on Wednesday. The company has a market capitalization of $107.06 billion, a price-to-earnings ratio of 24.50, a PEG ratio of 0.63 and a beta of 2.54. AppLovin has a 12 month low of $318.12 and a 12 month high of $745.61. The firm’s 50-day moving average is $462.95 and its 200 day moving average is $460.08. The company has a current ratio of 4.30, a quick ratio of 4.30 and a debt-to-equity ratio of 1.11.

AppLovin (NASDAQ:APP) last posted its quarterly earnings data on Tuesday, August 4th. The company reported $3.76 earnings per share for the quarter, hitting analysts’ consensus estimates of $3.76. AppLovin had a net margin of 64.58% and a return on equity of 193.10%. The company had revenue of $1.92 billion for the quarter, compared to analyst estimates of $1.94 billion. During the same period in the prior year, the company posted $2.39 EPS. The firm’s revenue for the quarter was up 52.8% on a year-over-year basis. Research analysts predict that AppLovin will post 15.56 EPS for the current year.

Insider Activity at AppLovin

In related news, CEO Arash Adam Foroughi sold 33,042 shares of AppLovin stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $486.95, for a total value of $16,089,801.90. Following the completion of the sale, the chief executive officer directly owned 2,369,351 shares in the company, valued at $1,153,755,469.45. The trade was a 1.38% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, insider Victoria Valenzuela sold 20,000 shares of the company’s stock in a transaction dated Thursday, June 4th. The stock was sold at an average price of $565.89, for a total transaction of $11,317,800.00. Following the completion of the sale, the insider directly owned 243,961 shares of the company’s stock, valued at approximately $138,055,090.29. This trade represents a 7.58% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 393,000 shares of company stock worth $197,297,363 over the last three months. Corporate insiders own 12.81% of the company’s stock.

Institutional Investors Weigh In On AppLovin

Several large investors have recently modified their holdings of the business. Cassaday & Co Wealth Management LLC purchased a new position in AppLovin during the first quarter valued at approximately $25,000. Washington Trust Advisors Inc. lifted its holdings in AppLovin by 160.0% during the fourth quarter. Washington Trust Advisors Inc. now owns 39 shares of the company’s stock worth $27,000 after buying an additional 24 shares during the period. Mcguire Capital Advisors Inc. bought a new stake in AppLovin during the 4th quarter valued at $27,000. Pioneer Family Office LLC bought a new stake in AppLovin during the 2nd quarter valued at $31,000. Finally, Laurel Wealth Advisors LLC bought a new stake in AppLovin during the 4th quarter valued at $32,000. Institutional investors own 41.85% of the company’s stock.

Key Headlines Impacting AppLovin

Here are the key news stories impacting AppLovin this week:

• Positive Sentiment: Phillip Securities upgraded AppLovin from “moderate buy” to “strong buy,” indicating that the recent pullback may have improved the stock’s risk-reward profile. Zacks.com
• Positive Sentiment: Several recent analyses remain bullish, arguing that AppLovin’s revenue and earnings growth are strong and that the market may have overreacted to its quarterly results. Optimistic commentary also points to upbeat third-quarter guidance and the possibility that the shares are undervalued after the selloff. AppLovin Stock: Buy or Sell?
• Neutral Sentiment: Bank of America maintained a “Neutral” rating but reduced its price target from $430 to $400. The lower target still implies substantial upside from the current level, but reflects a more cautious view of AppLovin’s valuation and growth visibility. Analyst rating changes
• Negative Sentiment: Bank of America downgraded AppLovin from “Buy” to “Neutral,” citing increased uncertainty over the company’s ability to sustain its long-term 30% revenue-growth target. The firm said second-quarter results raised questions about a previously expected source of sequential baseline growth. AppLovin shares drop on Bank of America downgrade
• Negative Sentiment: AppLovin’s second-quarter revenue came in slightly below consensus estimates, and execution concerns overshadowed earnings growth and positive third-quarter guidance. Investors are now focused on whether the company can maintain its unusually high growth rate, contributing to continued selling pressure. APP Stock Falls 17% Since Q2 Earnings

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.