AppLovin (NASDAQ:APP) Shares Up 2.5% – Should You Buy?

AppLovin Corporation (NASDAQ:APP)’s stock price rose 2.5% on Friday . The stock traded as high as $599.59 and last traded at $600.9950. Approximately 1,824,800 shares were traded during mid-day trading, a decline of 74% from the average daily volume of 7,005,749 shares. The stock had previously closed at $586.37.

Wall Street Analyst Weigh In

A number of equities analysts recently weighed in on APP shares. Deutsche Bank Aktiengesellschaft set a $705.00 price target on shares of AppLovin and gave the stock a “buy” rating in a research report on Wednesday, October 22nd. Bank of America boosted their target price on AppLovin from $580.00 to $860.00 and gave the stock a “buy” rating in a report on Wednesday, October 1st. Needham & Company LLC reaffirmed a “hold” rating on shares of AppLovin in a report on Tuesday, August 26th. Phillip Securities upgraded AppLovin to a “moderate buy” rating in a research report on Monday, September 29th. Finally, JPMorgan Chase & Co. upped their target price on AppLovin from $425.00 to $650.00 and gave the company a “neutral” rating in a report on Thursday, November 6th. Twenty-one analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $658.27.

AppLovin Trading Up 2.5%

The firm has a market cap of $203.11 billion, a price-to-earnings ratio of 72.94, a price-to-earnings-growth ratio of 3.15 and a beta of 2.50. The company has a debt-to-equity ratio of 2.38, a quick ratio of 3.25 and a current ratio of 3.25. The company has a 50 day moving average price of $608.50 and a 200 day moving average price of $476.97.

AppLovin (NASDAQ:APP) last issued its quarterly earnings data on Wednesday, November 5th. The company reported $2.45 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.34 by $0.11. AppLovin had a net margin of 51.27% and a return on equity of 258.49%. The firm had revenue of $1.41 billion for the quarter, compared to analyst estimates of $1.34 billion. During the same period in the previous year, the firm earned $1.29 EPS. AppLovin’s revenue was up 68.2% on a year-over-year basis. AppLovin has set its Q4 2025 guidance at EPS. On average, research analysts expect that AppLovin Corporation will post 6.87 earnings per share for the current year.

Insider Activity at AppLovin

In other AppLovin news, insider Victoria Valenzuela sold 35,000 shares of the business’s stock in a transaction that occurred on Thursday, September 4th. The stock was sold at an average price of $502.23, for a total value of $17,578,050.00. Following the sale, the insider owned 269,955 shares of the company’s stock, valued at $135,579,499.65. The trade was a 11.48% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Arash Adam Foroughi sold 30,888 shares of the firm’s stock in a transaction on Friday, November 21st. The stock was sold at an average price of $520.29, for a total value of $16,070,717.52. Following the transaction, the chief executive officer owned 2,553,161 shares of the company’s stock, valued at approximately $1,328,384,136.69. This represents a 1.20% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 360,542 shares of company stock valued at $208,733,493. 13.66% of the stock is owned by insiders.

Hedge Funds Weigh In On AppLovin

Several hedge funds have recently bought and sold shares of the company. Aberdeen Group plc raised its holdings in AppLovin by 6.5% during the second quarter. Aberdeen Group plc now owns 114,180 shares of the company’s stock worth $39,972,000 after purchasing an additional 7,001 shares in the last quarter. Legal Advantage Investments Inc. purchased a new position in shares of AppLovin in the 2nd quarter valued at $1,523,000. IFM Investors Pty Ltd grew its position in shares of AppLovin by 15.6% in the 2nd quarter. IFM Investors Pty Ltd now owns 45,209 shares of the company’s stock valued at $15,827,000 after buying an additional 6,104 shares during the last quarter. Park Avenue Securities LLC raised its stake in AppLovin by 30.6% during the 2nd quarter. Park Avenue Securities LLC now owns 20,890 shares of the company’s stock worth $7,313,000 after acquiring an additional 4,890 shares in the last quarter. Finally, Lee Johnson Capital Management LLC lifted its position in AppLovin by 13.6% in the second quarter. Lee Johnson Capital Management LLC now owns 12,449 shares of the company’s stock valued at $4,358,000 after acquiring an additional 1,491 shares during the last quarter. Institutional investors and hedge funds 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.