AppLovin (NASDAQ:APP) Reaches New 52-Week High on Strong Earnings

AppLovin Co. (NASDAQ:APP)’s stock price reached a new 52-week high during trading on Thursday following a stronger than expected earnings report. The company traded as high as $497.43 and last traded at $505.19, with a volume of 542075 shares changing hands. The stock had previously closed at $380.32.

The company reported $1.73 earnings per share for the quarter, topping analysts’ consensus estimates of $1.12 by $0.61. AppLovin had a return on equity of 122.24% and a net margin of 26.85%.

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on the stock. Benchmark assumed coverage on shares of AppLovin in a research report on Friday, January 10th. They issued a “buy” rating and a $375.00 price objective on the stock. Macquarie lifted their price target on shares of AppLovin from $270.00 to $450.00 and gave the stock an “outperform” rating in a report on Friday, December 6th. Bank of America upped their price target on AppLovin from $375.00 to $580.00 and gave the stock a “buy” rating in a research report on Thursday. UBS Group raised their price objective on AppLovin from $440.00 to $630.00 and gave the stock a “buy” rating in a research report on Thursday. Finally, Wells Fargo & Company upped their target price on AppLovin from $360.00 to $366.00 and gave the company an “overweight” rating in a research report on Monday, January 13th. Four equities research analysts have rated the stock with a hold rating, fourteen have assigned a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $389.53.

Insider Buying and Selling

In other news, CEO Arash Adam Foroughi sold 1,676 shares of the business’s stock in a transaction dated Tuesday, December 10th. The stock was sold at an average price of $356.39, for a total value of $597,309.64. Following the completion of the transaction, the chief executive officer now owns 3,058,635 shares of the company’s stock, valued at $1,090,066,927.65. The trade was a 0.05 % decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Craig Scott Billings sold 18,000 shares of the firm’s stock in a transaction dated Thursday, November 21st. The stock was sold at an average price of $318.94, for a total value of $5,740,920.00. Following the sale, the director now directly owns 2,987 shares in the company, valued at approximately $952,673.78. This trade represents a 85.77 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 828,991 shares of company stock worth $267,640,144. 14.69% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Sanctuary Advisors LLC purchased a new position in shares of AppLovin during the 2nd quarter valued at approximately $241,000. CWM LLC increased its holdings in AppLovin by 40.0% in the third quarter. CWM LLC now owns 4,659 shares of the company’s stock valued at $608,000 after buying an additional 1,331 shares in the last quarter. ORG Wealth Partners LLC acquired a new position in shares of AppLovin in the third quarter worth about $42,000. Creative Planning raised its position in shares of AppLovin by 251.2% in the third quarter. Creative Planning now owns 144,883 shares of the company’s stock worth $18,914,000 after acquiring an additional 103,628 shares during the period. Finally, Swedbank AB boosted its stake in shares of AppLovin by 24.7% during the 3rd quarter. Swedbank AB now owns 96,455 shares of the company’s stock worth $12,592,000 after acquiring an additional 19,100 shares in the last quarter. 41.85% of the stock is owned by institutional investors and hedge funds.

AppLovin Price Performance

The stock has a market capitalization of $169.54 billion, a price-to-earnings ratio of 153.20, a PEG ratio of 3.10 and a beta of 2.30. 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 stock has a 50-day moving average price of $347.30 and a 200 day moving average price of $224.62.

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.