Brokerages Raise AppLovin Stock Targets Amid Positive Earnings
AppLovin Corporation (NASDAQ:APP) has garnered a consensus recommendation of “Moderate Buy” from twenty-four brokerages currently tracking the company, according to MarketBeat.com. This follows the company’s recent quarterly earnings report, which exceeded analyst expectations and has led to multiple adjustments in target prices for the stock.
In a notable demonstration of confidence, one equities research analyst issued a sell recommendation, while four analysts offered a hold recommendation and nineteen assigned buy ratings. The average target price among brokerages that have updated their coverage in the past year stands at $692.60.
Analyst Upgrades and Earnings Performance
Recent analyst reports have highlighted a growing optimism regarding AppLovin’s market position. On October 7, 2023, Oppenheimer set a price target of $740.00 for the company’s shares. Subsequently, on November 6, 2023, Piper Sandler increased its target from $740.00 to $800.00, assigning the stock an “overweight” rating. Benchmark also raised its target, moving from $700.00 to $775.00 while maintaining a buy rating. BTIG Research adjusted their price target from $693.00 to $705.00, reinforcing the bullish outlook.
AppLovin reported its quarterly earnings results on November 5, 2023, showcasing 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%. With revenue of $1.41 billion, AppLovin exceeded analyst expectations of $1.34 billion and marked a substantial increase of 68.2% compared to the same quarter the previous year. Analysts predict an EPS of 6.87 for the current fiscal year.
Insider Transactions and Institutional Holdings
In related news, AppLovin’s CEO, Arash Adam Foroughi, sold 30,888 shares on November 21, 2023, at an average price of $520.29, amounting to approximately $16.07 million. Following this transaction, Foroughi retains 2,553,161 shares valued at around $1.33 billion. This sale reflects a 1.20% decrease in his ownership stake.
Similarly, Chief Technology Officer Vasily Shikin sold 27,143 shares on November 24, 2023, at an average price of $545.38, totaling about $14.80 million. After this sale, Shikin’s stake in the company stands at 3,323,681 shares, valued at approximately $1.81 billion, representing a 0.81% reduction in his holdings.
Over the past ninety days, insiders have sold 332,727 shares of AppLovin, amounting to $195.06 million. Currently, insiders hold 13.66% of the company’s stock.
Institutional investors are also adjusting their positions in AppLovin. Recently, Hilltop National Bank and LFA Lugano Financial Advisors, each purchased new positions in the second quarter valued at $26,000. SouthState Corp acquired a new stake valued at $29,000, and Activest Wealth Management significantly increased its position by 760% in the third quarter, now owning 43 shares worth approximately $31,000. Overall, institutional investors and hedge funds hold 41.85% of AppLovin’s stock.
AppLovin Corporation continues to expand its influence in the advertising technology sector, providing a software platform that enhances marketing and monetization for content creators across the globe. The company operates through two main segments: Software Platform and Apps, offering solutions such as AppDiscovery and MAX, which facilitate efficient advertising strategies.
As AppLovin navigates the evolving market landscape, its recent performance and analyst confidence suggest a positive trajectory ahead for the company and its stakeholders.
