AppLovin (NASDAQ:APP) Trading Up 10% – Here’s Why

AppLovin Corporation (NASDAQ:APP)’s share price was up 10% during trading on Wednesday . The stock traded as high as $485.16 and last traded at $482.81. Approximately 8,301,025 shares changed hands during trading, an increase of 23% from the average daily volume of 6,752,963 shares. The stock had previously closed at $438.89.

Wall Street Analyst Weigh In

A number of analysts recently commented on the company. Arete Research set a $340.00 price target on AppLovin and gave the company a “neutral” rating in a research report on Monday. Zacks Research downgraded AppLovin from a “strong-buy” rating to a “hold” rating in a research note on Thursday, February 12th. JPMorgan Chase & Co. lifted their target price on AppLovin from $425.00 to $650.00 and gave the stock a “neutral” rating in a research note on Thursday, November 6th. The Goldman Sachs Group reduced their price target on shares of AppLovin from $710.00 to $585.00 and set a “neutral” rating for the company in a research report on Thursday, February 12th. Finally, Jefferies Financial Group decreased their price objective on shares of AppLovin from $860.00 to $700.00 and set a “buy” rating for the company in a report on Thursday, February 12th. Twenty-one equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $658.14.

AppLovin Stock Performance

The company has a debt-to-equity ratio of 1.65, a current ratio of 3.32 and a quick ratio of 3.32. The firm has a market capitalization of $162.84 billion, a PE ratio of 49.52, a P/E/G ratio of 0.89 and a beta of 2.51. The company’s fifty day simple moving average is $527.66 and its 200 day simple moving average is $572.35.

AppLovin (NASDAQ:APP) last posted its earnings results on Wednesday, February 11th. The company reported $3.24 earnings per share for the quarter, topping the consensus estimate of $2.89 by $0.35. The firm had revenue of $1.66 billion during the quarter, compared to the consensus estimate of $1.61 billion. AppLovin had a net margin of 57.42% and a return on equity of 245.64%. The company’s revenue was up 66.0% on a year-over-year basis. During the same quarter last year, the company earned $1.73 earnings per share. As a group, equities research analysts expect that AppLovin Corporation will post 6.87 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Dawson Alyssa Harvey sold 150 shares of the firm’s stock in a transaction on Monday, December 8th. The stock was sold at an average price of $693.32, for a total value of $103,998.00. Following the completion of the transaction, the director directly owned 2,829 shares of the company’s stock, valued at $1,961,402.28. This trade represents a 5.04% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Victoria Valenzuela sold 7,609 shares of the business’s stock in a transaction on Thursday, December 18th. The shares were sold at an average price of $657.13, for a total value of $5,000,102.17. Following the sale, the insider owned 277,110 shares in the company, valued at approximately $182,097,294.30. The trade was a 2.67% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 13.66% of the company’s stock.

Hedge Funds Weigh In On AppLovin

A number of large investors have recently modified their holdings of the company. Rehmann Capital Advisory Group lifted its stake in AppLovin by 31.0% in the 4th quarter. Rehmann Capital Advisory Group now owns 1,461 shares of the company’s stock worth $985,000 after purchasing an additional 346 shares in the last quarter. SHP Wealth Management purchased a new stake in shares of AppLovin in the fourth quarter worth $52,000. Tulsa Wealth Advisors INC bought a new stake in AppLovin during the fourth quarter valued at $264,000. Caitong International Asset Management Co. Ltd boosted its stake in AppLovin by 36,164.7% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 6,165 shares of the company’s stock valued at $4,154,000 after buying an additional 6,148 shares during the period. Finally, Reflection Asset Management purchased a new position in AppLovin during the fourth quarter worth about $191,000. 41.85% of the stock is currently owned by institutional investors.

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.