AppLovin (NASDAQ:APP) Sets New 12-Month High – Should You Buy?

AppLovin Co. (NASDAQ:APP) shares hit a new 52-week high during mid-day trading on Wednesday . The company traded as high as $176.99 and last traded at $171.64, with a volume of 318027 shares. The stock had previously closed at $165.18.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on APP shares. Macquarie increased their price target on AppLovin from $150.00 to $270.00 and gave the stock an “outperform” rating in a report on Thursday. Wells Fargo & Company initiated coverage on shares of AppLovin in a research note on Monday, October 28th. They set an “overweight” rating and a $200.00 price target on the stock. Loop Capital initiated coverage on AppLovin in a research report on Tuesday, October 22nd. They set a “buy” rating and a $181.00 target price on the stock. Daiwa Capital Markets upgraded AppLovin from a “neutral” rating to an “outperform” rating and lifted their price target for the company from $80.00 to $280.00 in a research note on Friday. Finally, UBS Group upgraded AppLovin from a “neutral” rating to a “buy” rating and increased their price objective for the stock from $100.00 to $145.00 in a research report on Tuesday, September 17th. One equities research analyst has rated the stock with a sell rating, four have issued a hold rating and thirteen have issued a buy rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $182.31.

AppLovin Price Performance

The company has a market capitalization of $82.40 billion, a PE ratio of 104.91, a PEG ratio of 2.29 and a beta of 1.86. The company has a current ratio of 2.28, a quick ratio of 2.28 and a debt-to-equity ratio of 4.27. The company’s 50 day moving average price is $135.33 and its 200-day moving average price is $99.54.

AppLovin (NASDAQ:APP) last posted its earnings results on Wednesday, August 7th. The company reported $0.89 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.77 by $0.12. The firm had revenue of $1.08 billion during the quarter, compared to the consensus estimate of $1.08 billion. AppLovin had a net margin of 20.89% and a return on equity of 84.16%. The company’s revenue was up 44.0% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.22 EPS. On average, sell-side analysts forecast that AppLovin Co. will post 3.48 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Dawson Alyssa Harvey sold 1,500 shares of the firm’s stock in a transaction on Tuesday, September 10th. The shares were sold at an average price of $87.90, for a total transaction of $131,850.00. Following the completion of the sale, the director now directly owns 10,247 shares of the company’s stock, valued at approximately $900,711.30. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. In related news, Director Dawson Alyssa Harvey sold 1,500 shares of the stock in a transaction dated Tuesday, September 10th. The stock was sold at an average price of $87.90, for a total value of $131,850.00. Following the completion of the transaction, the director now owns 10,247 shares of the company’s stock, valued at approximately $900,711.30. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, insider Victoria Valenzuela sold 14,166 shares of the firm’s stock in a transaction that occurred on Thursday, August 22nd. The shares were sold at an average price of $89.98, for a total value of $1,274,656.68. Following the sale, the insider now owns 352,616 shares of the company’s stock, valued at approximately $31,728,387.68. This trade represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 610,094 shares of company stock worth $51,022,478 in the last 90 days. 14.69% of the stock is owned by company insiders.

Hedge Funds Weigh In On AppLovin

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

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.