AppLovin (NASDAQ:APP) Shares Gap Up Following Earnings Beat

Shares of AppLovin Co. (NASDAQ:APP) gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $303.46, but opened at $344.00. AppLovin shares last traded at $355.34, with a volume of 5,414,070 shares changing hands.

The company reported $1.67 earnings per share for the quarter, topping analysts’ consensus estimates of $1.45 by $0.22. AppLovin had a net margin of 33.54% and a return on equity of 188.55%. The company had revenue of $1.48 billion during the quarter, compared to analyst estimates of $1.38 billion. During the same period in the prior year, the business posted $0.67 earnings per share. AppLovin’s revenue for the quarter was up 40.3% on a year-over-year basis.

Analyst Ratings Changes

Several research analysts have commented on APP shares. FBN Securities assumed coverage on shares of AppLovin in a report on Friday, March 28th. They issued an “outperform” rating and a $385.00 price objective for the company. JPMorgan Chase & Co. upped their price target on AppLovin from $270.00 to $355.00 and gave the stock a “neutral” rating in a research note on Thursday. Loop Capital reissued a “buy” rating and set a $650.00 price target on shares of AppLovin in a research report on Friday, March 28th. Morgan Stanley upped their price objective on shares of AppLovin from $350.00 to $420.00 and gave the stock an “overweight” rating in a report on Thursday. Finally, UBS Group boosted their price target on AppLovin from $450.00 to $475.00 and gave the stock a “buy” rating in a research report on Thursday. One equities research analyst has rated the stock with a sell rating, three have issued a hold rating, seventeen have assigned a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $433.85.

Insider Buying and Selling at AppLovin

In other news, CEO Arash Adam Foroughi sold 45,000 shares of the business’s stock in a transaction on Friday, February 21st. The shares were sold at an average price of $422.21, for a total transaction of $18,999,450.00. Following the completion of the sale, the chief executive officer now owns 2,914,492 shares of the company’s stock, valued at $1,230,527,667.32. The trade was a 1.52 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Herald Y. Chen sold 200,000 shares of the firm’s stock in a transaction on Friday, February 28th. The stock was sold at an average price of $324.65, for a total value of $64,930,000.00. Following the completion of the transaction, the director now directly owns 621,209 shares in the company, valued at approximately $201,675,501.85. This represents a 24.35 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 306,900 shares of company stock valued at $106,401,841. 14.69% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Fuller & Thaler Asset Management Inc. bought a new position in shares of AppLovin in the fourth quarter worth approximately $25,000. GHP Investment Advisors Inc. purchased a new position in shares of AppLovin during the 4th quarter valued at $25,000. Riverview Trust Co boosted its holdings in AppLovin by 1,640.0% in the 4th quarter. Riverview Trust Co now owns 87 shares of the company’s stock worth $28,000 after buying an additional 82 shares during the period. Tucker Asset Management LLC purchased a new stake in AppLovin in the 4th quarter worth $28,000. Finally, Hemington Wealth Management raised its holdings in AppLovin by 78.4% during the fourth quarter. Hemington Wealth Management now owns 91 shares of the company’s stock valued at $29,000 after acquiring an additional 40 shares during the period. 41.85% of the stock is currently owned by institutional investors.

AppLovin Stock Down 3.2 %

The firm has a market capitalization of $111.77 billion, a PE ratio of 72.42, a P/E/G ratio of 3.02 and a beta of 2.39. The company has a debt-to-equity ratio of 3.70, a current ratio of 2.41 and a quick ratio of 2.41. The company has a 50-day moving average price of $275.55 and a 200 day moving average price of $310.54.

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.