AppLovin Corporation (NASDAQ:APP) saw an upside of 2.04% to close Monday at $39.01 after adding $0.78 on the day. The 5-day average trading volume is 2,737,200 shares of the company’s common stock. It has gained $40.04 in the past week and touched a new high 1 time within the past 5 days. An average of 3,539,000 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 2,672,946.
APP’s 1-month performance is 38.83% or $10.91 on its low of $27.96 reached on 07/24/23. The company’s shares have touched a 52-week low of $9.14 and high of $40.04, with the stock’s rally to the 52-week high happening on 08/15/23. YTD, APP has achieved 270.47% or $28.48 and has reached a new high 38 times. However, the current price is down -2.57% from the 52-week high price.
Insider Transactions
APP stock investors last saw insider trading activity on Aug 14.KKR Denali Holdings L.P. (10% Owner) most recently sold 10,000,000 shares at $37.00 per share on Aug 14. This transaction cost the insider $370,000,000. 10% Owner, KKR Group Partnership L.P., sold 10,000,000 shares at a price of $37.00 on Aug 14. Then, on Jul 27, CLO & Corp. Secretary Valenzuela Victoria sold 25,000 shares at a price of $30.94 per share. This transaction amounted to $773,500.
Valuation Metrics
APP stock has a beta of 1.73. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 4.66 while the price-to-book (PB) in the most recent quarter is 9.18, with the price to cash flow ratio at 15.90.
AppLovin Corporation’s quick ratio for the period ended June 29 was 2.90, with the current ratio over the same period at 2.90. As well, the company’s long term debt to equity for the quarter ending June 29 was 2.09, while the total debt to equity was 2.13. In terms of profitability, the gross margin trailing 12 months is 63.10%. The trailing 12-month EBITDA margin is 24.71% while for the period ending June 29, AppLovin Corporation’s operating margin was 7.60%. The firm’s gross profit as reported stood at $1.56 billion against revenue of $2.82 billion.
Earnings Surprise
For the quarterly period ending June 29 this year, Net income and sales went up compared to those figures reported in the previous quarter. Net income grew 127.17% to $80.04 million, while revenue of -$4.52 million was 105.65% off the previous quarter. Analysts expected APP to announce $0.07 per share in earnings in its latest quarter, but it posted $0.22, representing a 214.30% surprise. EBITDA for the quarter stood at more than $254.55 million. APP stock balance sheet for the quarter ending June 29 shows that total liabilities totaled 3.96 billion, with total debt at $3.27 billion. Shareholders hold equity totaling $347.8 million.
Let’s look briefly at AppLovin Corporation (APP) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 21 August was 73.20% to suggest the stock is trending Overbought, with historical volatility in this time period at 118.71%.
The stock’s 5-day moving average is $38.75, reflecting a -1.86% or -$0.74 change from its current price. APP is currently trading +38.58% above its 20-day SMA, +179.24% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +73.45% and SMA200 by+127.86%.
Stochastic %K and %D was 84.73% and 86.22% and the average true range (ATR) pointed at 1.86. The RSI (14) points at 73.47%, while the 14-day stochastic is at 90.68% with the period’s ATR at 1.72. The stock’s 9-day MACD Oscillator is pointing at 0.69 and 3.14 on the 14-day charts.
Analyst Ratings
In the most recent analyst report for AppLovin Corporation (NASDAQ: APP), BTIG Research upgraded it to a Buy rating. They previously had a Neutral rating on the stock. Analysts offering their rating for APP stock have a consensus rating for the stock as Overweight. Currently, 1 brokerage advisors rate APP as a “sell,”, while 7 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 0 rates the stock as overweight while 15 have offered a “buy” rating.
What is APP’s price target for the next 12 months?
Analysts have a consensus price target ranging from a low of $20.00 and a high of $57.00, with their median price target at $42.00. Looking at these predictions, the average price target given by analysts is for AppLovin Corporation (APP) stock is $41.47.
