AppLovin (NASDAQ:APP) Stock Price Up 0.9% – Should You Buy?

AppLovin Co. (NASDAQ:APP) shares were up 0.9% during mid-day trading on Friday . The stock traded as high as $349.39 and last traded at $344.94. Approximately 1,297,630 shares changed hands during mid-day trading, a decline of 57% from the average daily volume of 2,997,097 shares. The stock had previously closed at $341.78.

Analysts Set New Price Targets

APP has been the topic of several research analyst reports. Piper Sandler initiated coverage on AppLovin in a report on Wednesday, November 20th. They set an “overweight” rating and a $400.00 target price on the stock. Macquarie raised their price objective on shares of AppLovin from $270.00 to $450.00 and gave the company an “outperform” rating in a research report on Friday, December 6th. Wedbush reiterated an “outperform” rating and set a $270.00 target price (up from $170.00) on shares of AppLovin in a research report on Thursday, November 7th. Stifel Nicolaus raised their price target on AppLovin from $250.00 to $435.00 and gave the company a “buy” rating in a report on Thursday, December 5th. Finally, Jefferies Financial Group boosted their price objective on AppLovin from $270.00 to $400.00 and gave the stock a “buy” rating in a report on Tuesday, November 26th. One analyst has rated the stock with a sell rating, four have given a hold rating, thirteen have given a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $310.71.

AppLovin Stock Up 2.0 %

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 market capitalization of $116.95 billion, a price-to-earnings ratio of 105.61, a PEG ratio of 4.17 and a beta of 2.28. The firm has a 50-day moving average price of $298.25 and a two-hundred day moving average price of $169.08.

AppLovin (NASDAQ:APP) last released its quarterly earnings results on Wednesday, November 6th. The company reported $1.25 earnings per share for the quarter, topping analysts’ consensus estimates of $0.92 by $0.33. AppLovin had a return on equity of 122.24% and a net margin of 26.85%. The firm had revenue of $1.20 billion during the quarter, compared to the consensus estimate of $1.13 billion. During the same quarter in the prior year, the firm posted $0.30 EPS. The business’s revenue was up 38.6% on a year-over-year basis. As a group, sell-side analysts anticipate that AppLovin Co. will post 4.06 earnings per share for the current fiscal year.

Insider Activity at AppLovin

In related news, Director Dawson Alyssa Harvey sold 500 shares of the firm’s stock in a transaction dated Friday, December 6th. The shares were sold at an average price of $406.27, for a total value of $203,135.00. Following the completion of the sale, the director now directly owns 6,684 shares in the company, valued at approximately $2,715,508.68. This trade represents a 6.96 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider Victoria Valenzuela sold 17,925 shares of the business’s stock in a transaction that occurred on Tuesday, December 3rd. The stock was sold at an average price of $354.15, for a total value of $6,348,138.75. Following the transaction, the insider now directly owns 405,676 shares in the company, valued at approximately $143,670,155.40. This trade represents a 4.23 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 888,867 shares of company stock valued at $284,773,062. Corporate insiders own 14.69% of the company’s stock.

Institutional Trading of AppLovin

Hedge funds have recently modified their holdings of the stock. Capital Performance Advisors LLP bought a new position in shares of AppLovin during the third quarter worth approximately $25,000. Meeder Asset Management Inc. bought a new stake in shares of AppLovin during the 3rd quarter worth approximately $27,000. DT Investment Partners LLC bought a new position in AppLovin in the third quarter valued at approximately $27,000. Raleigh Capital Management Inc. bought a new stake in AppLovin during the third quarter worth $29,000. Finally, HM Payson & Co. increased its stake in shares of AppLovin by 50.0% in the 3rd quarter. HM Payson & Co. now owns 300 shares of the company’s stock valued at $39,000 after purchasing an additional 100 shares during the last quarter. Institutional investors and hedge funds own 41.85% of the company’s stock.

About AppLovin

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.