Wells Fargo & Company Forecasts Strong Price Appreciation for AppLovin (NASDAQ:APP) Stock

AppLovin (NASDAQ:APP) had its target price lifted by Wells Fargo & Company from $250.00 to $360.00 in a research report released on Wednesday morning,Benzinga reports. The firm currently has an overweight rating on the stock.

Other equities analysts have also issued reports about the company. Bank of America increased their price objective on AppLovin from $100.00 to $120.00 and gave the company a “buy” rating in a research report on Wednesday, September 11th. Needham & Company LLC restated a “hold” rating on shares of AppLovin in a research report on Thursday, November 7th. JPMorgan Chase & Co. raised their price target on AppLovin from $160.00 to $200.00 and gave the stock a “neutral” rating in a research report on Thursday, November 7th. Daiwa America upgraded AppLovin from a “hold” rating to a “strong-buy” rating in a research report on Friday, November 8th. Finally, BTIG Research raised their price target on AppLovin from $202.00 to $291.00 and gave the stock a “buy” rating in a research report on Thursday, November 7th. One investment analyst has rated the stock with a sell rating, four have assigned a hold rating, fourteen have issued a buy rating and one has given a strong buy rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $222.96.

AppLovin Price Performance

Shares of AppLovin stock opened at $333.31 on Wednesday. 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 firm has a market capitalization of $111.86 billion, a PE ratio of 101.00, a price-to-earnings-growth ratio of 3.95 and a beta of 1.86. The business’s 50-day moving average price is $181.30 and its 200-day moving average price is $117.13. AppLovin has a 12 month low of $35.79 and a 12 month high of $342.51.

AppLovin (NASDAQ:APP) last announced its quarterly earnings data on Wednesday, November 6th. The company reported $1.25 EPS for the quarter, beating the consensus estimate of $0.92 by $0.33. The firm had revenue of $1.20 billion for the quarter, compared to analyst estimates of $1.13 billion. AppLovin had a return on equity of 122.24% and a net margin of 26.85%. The company’s revenue was up 38.6% on a year-over-year basis. During the same period in the prior year, the company earned $0.30 EPS. Sell-side analysts forecast that AppLovin will post 4.06 EPS for the current fiscal year.

Insider Activity

In other news, CFO Matthew Stumpf sold 21,101 shares of the firm’s stock in a transaction that occurred on Friday, November 22nd. The stock was sold at an average price of $332.67, for a total value of $7,019,669.67. Following the completion of the transaction, the chief financial officer now owns 213,336 shares in the company, valued at $70,970,487.12. This trade represents a 9.00 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Craig Scott Billings sold 18,000 shares of the firm’s stock in a transaction that occurred on Thursday, November 21st. The shares were sold at an average price of $318.94, for a total value of $5,740,920.00. Following the completion of the transaction, the director now owns 2,987 shares of the company’s stock, valued at approximately $952,673.78. The trade was a 85.77 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 854,065 shares of company stock worth $233,072,408 in the last quarter. 14.69% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the stock. SOA Wealth Advisors LLC. purchased a new position in AppLovin during the third quarter valued at $59,000. Virtu Financial LLC purchased a new position in shares of AppLovin in the third quarter worth $3,211,000. Invst LLC raised its stake in shares of AppLovin by 23.2% in the third quarter. Invst LLC now owns 6,812 shares of the company’s stock worth $889,000 after purchasing an additional 1,284 shares during the last quarter. TD Private Client Wealth LLC raised its stake in shares of AppLovin by 272.0% in the third quarter. TD Private Client Wealth LLC now owns 305 shares of the company’s stock worth $40,000 after purchasing an additional 223 shares during the last quarter. Finally, Toronto Dominion Bank raised its stake in shares of AppLovin by 38.8% in the third quarter. Toronto Dominion Bank now owns 25,174 shares of the company’s stock worth $3,286,000 after purchasing an additional 7,039 shares during the last quarter. Hedge funds and other institutional investors 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.