Evercore ISI has initiated coverage on shares of AppLovin Corporation (NASDAQ: APP), issuing an outperform rating along with a price target of $835.00. The report was released on November 5, 2023, marking a significant moment for the Palo Alto-based mobile technology company that specializes in app development and monetization.
Analyst Ratings and Price Targets
In addition to Evercore ISI’s assessment, other financial institutions have also recently adjusted their price targets for AppLovin. On the same day, Wedbush raised its target from $745.00 to $800.00 while maintaining an outperform rating. Similarly, Morgan Stanley increased its price objective from $750.00 to $800.00 and assigned an overweight rating.
Meanwhile, Citigroup lowered its target price from $850.00 to $820.00 but kept a buy rating. JPMorgan Chase & Co. also increased its price target from $425.00 to $650.00, rating the stock as neutral. Lastly, BTIG Research reiterated a buy rating with a target price of $771.00.
Currently, the consensus rating for AppLovin is classified as “Moderate Buy” with an average price target of $706.76, based on the evaluations of 25 analysts. Among them, one analyst has rated the stock as a Strong Buy, twenty have assigned a Buy rating, three have given it a Hold rating, and one has assigned a Sell rating.
Recent Quarterly Performance
AppLovin’s recent earnings report, released on November 5, 2023, revealed a robust performance. The company reported earnings of $2.45 per share, surpassing the consensus estimate of $2.34 by $0.11. With a return on equity of 258.49% and a net margin of 51.27%, AppLovin generated revenue of $1.41 billion for the quarter, exceeding analysts’ expectations of $1.34 billion.
This performance represents a remarkable 68.2% increase in quarterly revenue compared to the same period last year, where the company posted earnings of $1.29 per share. Analysts anticipate that AppLovin will achieve $6.87 earnings per share for the current year.
Insider Transactions and Institutional Investment
In related news, CEO Arash Adam Foroughi sold 4,069 shares on November 21, 2023, at an average price of $497.50, totaling approximately $2,024,327.50. Following this transaction, Foroughi retains 2,998,948 shares, valued at around $1.49 billion. The sale indicated a 0.14% decrease in his ownership.
Another insider, Victoria Valenzuela, sold 7,609 shares on December 18, 2023, for about $5,000,102.17, resulting in a 2.67% reduction in her holdings. Over the past quarter, insiders have sold a total of 340,336 shares valued at $200,062,623, with corporate insiders currently holding 13.66% of the stock.
Several institutional investors have also adjusted their positions in AppLovin. Tema ETFs LLC increased its holdings by 3.3%, acquiring 4,597 shares worth approximately $3,098,000. Victory Financial Group LLC and Frank Rimerman Advisors LLC also boosted their stakes by 5.7% and 47.7%, respectively, reflecting increasing confidence in the company’s growth prospects.
Currently, institutional investors own 41.85% of AppLovin’s stock, indicating a strong interest from significant market players.
About AppLovin
AppLovin Corporation is a leading mobile technology company that provides innovative software and services for app developers seeking to enhance and monetize their products. The company’s data-driven advertising and marketing platform connects app publishers with advertisers, delivering essential tools for user acquisition, monetization, analytics, and creative optimization. AppLovin’s offerings include an ad mediation and exchange platform that empowers publishers to manage their inventories effectively, along with a user-acquisition platform that aids advertisers in targeting and scaling their campaigns.
The firm’s technology, integrated into a wide array of mobile applications, is designed to maximize revenue and user engagement for developers, positioning AppLovin as a key player in the mobile advertising landscape.
