Hudson Bay Capital Increases Stake in AppLovin by 288.6%
Hudson Bay Capital Management LP has significantly increased its investment in AppLovin Corporation, boosting its holdings by an impressive 288.6% during the second quarter of 2023. According to a recent filing with the Securities and Exchange Commission (SEC), the institutional investor now owns 33,323 shares of AppLovin’s stock after acquiring an additional 24,748 shares during this period. The total value of Hudson Bay’s holdings in AppLovin reached approximately $11.67 million at the end of the quarter.
Other institutional investors have also made moves in AppLovin, indicating growing interest in the company. Hilltop National Bank, for example, established a new position in the second quarter valued at $26,000, while LFA Lugano Financial Advisors SA also acquired shares worth $26,000. Additionally, Twin Peaks Wealth Advisors LLC purchased a stake valued at $33,000, and Hoey Investments Inc. and Trust Co. of Vermont each invested $35,000 in the company. In total, institutional investors and hedge funds currently hold 41.85% of AppLovin’s stock.
Insider Transactions Raise Attention
Recent insider trading has drawn attention as well. On November 21, 2023, AppLovin’s CEO, Arash Adam Foroughi, sold 30,888 shares at an average price of $520.29, resulting in a transaction valued at $16.07 million. Following this sale, Foroughi retains ownership of 2,553,161 shares, estimated to be worth about $1.33 billion. This sale marks a 1.20% decline in his ownership stake.
Similarly, Director Eduardo Vivas sold 150,000 shares on November 10, 2023, at an average price of $650.91, for a total of $97.64 million. Post-transaction, Vivas holds 7,133,292 shares, valued at approximately $4.64 billion, reflecting a 2.06% decrease in his stake. Over the past three months, insiders have sold a total of 332,727 shares for roughly $195.06 million. Currently, insiders own 13.66% of the company’s stock.
Market Performance and Projections
As of the latest trading session, AppLovin’s stock opened at $670.67. The company has experienced significant fluctuations in its stock price, with a twelve-month low of $200.50 and a high of $745.61. AppLovin’s financial metrics indicate a debt-to-equity ratio of 2.38, and both its quick and current ratios are at 3.25. The firm has a market capitalization of $226.65 billion, a price-to-earnings (P/E) ratio of 81.39, and a P/E to growth (P/E/G) ratio of 3.60. Its beta stands at 2.51, indicating higher volatility compared to the market.
On November 5, 2023, AppLovin reported its quarterly earnings, revealing earnings per share (EPS) of $2.45, surpassing the consensus estimate of $2.34 by $0.11. The company achieved a net margin of 51.27% and a return on equity of 258.49%. Revenue for the quarter was $1.41 billion, exceeding analyst expectations of $1.34 billion and representing a 68.2% increase year-over-year.
Research analysts forecast that AppLovin Corporation will post an EPS of 6.87 for the current fiscal year, suggesting continued growth potential for the company.
AppLovin Corporation specializes in developing a software-based platform that enhances marketing and monetization strategies for advertisers globally. Its operations are divided into two segments: Software Platform and Apps. The company offers various solutions, including AppDiscovery, MAX, Adjust, and Wurl, each designed to optimize advertising efforts and enhance user engagement.
For those interested in tracking further developments related to AppLovin and its stakeholders, updated information can be accessed through various financial news platforms.
