AppLovin (NASDAQ:APP) Stock Price Up 13.5% After Better-Than-Expected Earnings

AppLovin Co. (NASDAQ:APP) traded up 13.5% on Thursday following a stronger than expected earnings report. The stock traded as high as $357.64 and last traded at $344.53. 7,005,836 shares changed hands during mid-day trading, an increase of 17% from the average session volume of 5,996,866 shares. The stock had previously closed at $303.46.

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

Analyst Upgrades and Downgrades

Several research firms recently issued reports on APP. Bank of America increased their price target on shares of AppLovin from $375.00 to $580.00 and gave the stock a “buy” rating in a research report on Thursday, February 13th. Citigroup boosted their price target on AppLovin from $460.00 to $600.00 and gave the stock a “buy” rating in a report on Wednesday, February 19th. Needham & Company LLC reaffirmed a “hold” rating on shares of AppLovin in a research note on Monday, April 21st. Morgan Stanley boosted their target price on AppLovin from $350.00 to $420.00 and gave the stock an “overweight” rating in a research note on Thursday. Finally, Arete Research set a $200.00 price target on shares of AppLovin in a report on Wednesday, March 5th. One research analyst has rated the stock with a sell rating, three have issued a hold rating, seventeen have given a buy rating and one has given a strong buy rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $433.85.

Insiders Place Their Bets

In related news, CEO Arash Adam Foroughi sold 45,000 shares of the business’s stock in a transaction dated Friday, February 21st. The stock was sold at an average price of $422.21, for a total value of $18,999,450.00. Following the completion of the sale, the chief executive officer now directly 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 filing with the SEC, which is available at the SEC website. Also, CTO Vasily Shikin sold 17,500 shares of the stock in a transaction that occurred on Monday, March 10th. The stock was sold at an average price of $241.65, for a total value of $4,228,875.00. Following the completion of the transaction, the chief technology officer now owns 88,389 shares in the company, valued at approximately $21,359,201.85. The trade was a 16.53 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 306,900 shares of company stock worth $106,401,841. 14.69% of the stock is currently owned by insiders.

Hedge Funds Weigh In On AppLovin

A number of institutional investors have recently modified their holdings of the company. FMR LLC raised its holdings in AppLovin by 75.5% during the fourth quarter. FMR LLC now owns 13,851,122 shares of the company’s stock worth $4,485,409,000 after buying an additional 5,957,885 shares during the last quarter. SVB Wealth LLC bought a new stake in shares of AppLovin during the fourth quarter worth about $1,781,922,000. Baillie Gifford & Co. raised its holdings in shares of AppLovin by 5,421.4% in the 4th quarter. Baillie Gifford & Co. now owns 4,084,496 shares of the company’s stock worth $1,322,682,000 after acquiring an additional 4,010,520 shares during the last quarter. Dynasty Wealth Management LLC lifted its position in AppLovin by 117,664.4% in the 1st quarter. Dynasty Wealth Management LLC now owns 2,702,694 shares of the company’s stock valued at $716,133,000 after acquiring an additional 2,700,399 shares in the last quarter. Finally, Norges Bank acquired a new position in AppLovin during the 4th quarter valued at about $828,138,000. 41.85% of the stock is owned by institutional investors and hedge funds.

AppLovin Price Performance

The company has a current ratio of 2.41, a quick ratio of 2.41 and a debt-to-equity ratio of 3.70. The business has a fifty day simple moving average of $275.55 and a 200 day simple moving average of $310.54. The stock has a market capitalization of $111.77 billion, a P/E ratio of 72.42, a price-to-earnings-growth ratio of 3.02 and a beta of 2.39.

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.