BTIG Research Cuts AppLovin (NASDAQ:APP) Price Target to $408.00

AppLovin (NASDAQ:APP) had its target price lowered by BTIG Research from $574.00 to $408.00 in a report issued on Wednesday morning, Marketbeat Ratings reports. The brokerage currently has a buy rating on the stock.

Several other brokerages have also issued reports on APP. Piper Sandler lowered shares of AppLovin from an “overweight” rating to a “neutral” rating and decreased their price target for the company from $665.00 to $385.00 in a report on Thursday, August 6th. Raymond James Financial started coverage on shares of AppLovin in a research note on Monday, June 29th. They issued a “strong-buy” rating and a $640.00 target price for the company. Phillip Securities upgraded AppLovin from a “moderate buy” rating to a “strong-buy” rating in a report on Tuesday. Bank of America reissued a “neutral” rating and issued a $400.00 price target (down from $430.00) on shares of AppLovin in a research note on Tuesday. Finally, Benchmark cut their price target on AppLovin from $775.00 to $500.00 and set a “buy” rating on the stock in a report on Thursday, August 6th. Three research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and eight have issued a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $565.91.

AppLovin Stock Up 0.9%

Shares of APP stock opened at $315.44 on Wednesday. AppLovin has a one year low of $303.17 and a one year high of $745.61. The stock has a market cap of $105.56 billion, a P/E ratio of 24.25, a price-to-earnings-growth ratio of 0.63 and a beta of 2.54. The stock has a fifty day moving average price of $447.84 and a 200 day moving average price of $456.06. The company has a debt-to-equity ratio of 1.11, a current ratio of 4.30 and a quick ratio of 4.30.

AppLovin (NASDAQ:APP) last released its quarterly earnings results on Tuesday, August 4th. The company reported $3.76 EPS for the quarter, meeting analysts’ consensus estimates of $3.76. AppLovin had a net margin of 64.58% and a return on equity of 193.10%. The firm had revenue of $1.92 billion for the quarter, compared to analyst estimates of $1.94 billion. During the same period in the previous year, the business earned $2.39 earnings per share. The company’s revenue for the quarter was up 52.8% compared to the same quarter last year. Analysts predict that AppLovin will post 15.57 earnings per share for the current year.

Insider Activity

In related news, CFO Matthew Stumpf sold 9,052 shares of the firm’s stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $600.00, for a total transaction of $5,431,200.00. Following the completion of the transaction, the chief financial officer directly owned 177,450 shares of the company’s stock, valued at $106,470,000. This trade represents a 4.85% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Arash Adam Foroughi sold 22,544 shares of AppLovin stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $494.98, for a total value of $11,158,829.12. Following the transaction, the chief executive officer directly owned 2,327,684 shares in the company, valued at $1,152,157,026.32. The trade was a 0.96% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 393,000 shares of company stock valued at $197,297,363. 12.81% of the stock is currently owned by insiders.

Hedge Funds Weigh In On AppLovin

A number of large investors have recently modified their holdings of APP. Verdence Capital Advisors LLC raised its holdings in AppLovin by 5.7% during the fourth quarter. Verdence Capital Advisors LLC now owns 333 shares of the company’s stock worth $224,000 after buying an additional 18 shares during the last quarter. Finivi Inc. increased its position in shares of AppLovin by 3.2% during the fourth quarter. Finivi Inc. now owns 711 shares of the company’s stock worth $479,000 after acquiring an additional 22 shares in the last quarter. Revolve Wealth Partners LLC raised its holdings in shares of AppLovin by 2.8% in the 2nd quarter. Revolve Wealth Partners LLC now owns 851 shares of the company’s stock worth $438,000 after acquiring an additional 23 shares during the last quarter. Alta Wealth Advisors LLC raised its holdings in shares of AppLovin by 0.6% in the 4th quarter. Alta Wealth Advisors LLC now owns 3,925 shares of the company’s stock worth $2,645,000 after acquiring an additional 24 shares during the last quarter. Finally, Washington Trust Advisors Inc. lifted its holdings in shares of AppLovin by 160.0% in the fourth quarter. Washington Trust Advisors Inc. now owns 39 shares of the company’s stock valued at $27,000 after purchasing an additional 24 shares in the last quarter. 41.85% of the stock is currently owned by institutional investors.

More AppLovin News

Here are the key news stories impacting AppLovin this week:

• Positive Sentiment: Some analysts remain constructive on AppLovin’s valuation and financial profile. Phillip Securities upgraded the stock, while a recent analysis argued that the shares may be mispriced relative to the company’s fundamentals after reaching a 52-week low. AppLovin Upgraded at Phillip Securities AppLovin at 52-Week Low
• Neutral Sentiment: JPMorgan initiated coverage with a Neutral rating, recognizing AppLovin’s strong profitability and balance-sheet profile while questioning whether its rapid mobile-gaming advertising growth can continue. Bank of America also rates the shares Neutral. JPMorgan Initiates AppLovin Coverage Bank of America Neutral Rating
• Negative Sentiment: AppLovin’s latest quarterly results fell slightly short of revenue expectations, and adjusted EBITDA also missed estimates. Management attributed the weakness to slower-than-usual improvements in its core gaming advertising models, intensifying concerns about earnings-growth durability. AppLovin Q2 Earnings Call
• Negative Sentiment: Competitive risks from Unity and Meta, as well as questions about whether Google could challenge AppLovin’s advertising position, are weighing on the investment narrative. BTIG issued a pessimistic forecast, and another analyst downgrade previously contributed to selling pressure. BTIG Forecast for AppLovin AppLovin and Google Competition
• Negative Sentiment: Quant fund Renaissance Technologies exited its AppLovin position, a potential additional overhang for sentiment even though the move reflects portfolio management rather than a fundamental company announcement. Renaissance Changes Holdings

AppLovin Company Profile

AppLovin Corporation is a Palo Alto–based mobile technology company that provides software and services to help app developers grow and monetize their businesses. The company operates a data-driven advertising and marketing platform that connects app publishers and advertisers, delivering tools for user acquisition, monetization, analytics and creative optimization. AppLovin’s technology is integrated into a broad set of mobile applications through software development kits (SDKs) and ad products designed to maximize revenue and engagement for developers.

Key components of AppLovin’s offering include an ad mediation and exchange platform that enables publishers to manage and monetize inventory across multiple demand sources, and a user-acquisition platform that helps advertisers target and scale campaigns.