The stock of AppLovin Corporation (NASDAQ:APP) increased by $0.57 on Tuesday to finish at $41.22, up 1.40 percent. The last five days have seen an average of 2,119,920 shares of common stock traded. 41 times new highs were reached in the current year, with a gain of $30.69. The average number of shares traded over the last 20 days was 3,651,005, while the average volume over the last 50 days totaled 2,580,390.
APP stock appreciated 31.27% since last month. On 08/09/23, the company’s shares reached a one-month low of $28.99. The stock touched a high of $40.91 on 08/29/23, after rallying from a low of $9.14 in 52 weeks. The price of APP stock has risen by 291.45% or $30.69 this year, reaching a new high 41 times. Still, the stock price is up 0.76% from the 52-week high.
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Insider Transactions
APP stock investors should be aware that AppLovin Corporation (APP) stock had its last reported insider trading activity 7 days ago on Aug 23. On Aug 23, Chief Marketing Officer Jansen Katie Kihorany sold 52,193 shares at $39.88 each. This transaction resulted in the insider making $2,081,457. On Aug 22, Valenzuela Victoria sold 27,576 shares at a price of US$39.72. After the transaction, the insider now owns 570,630 shares. 10% Owner KKR Denali Holdings L.P. had earlier sold 15,000,000 shares on Aug 21 for $36.85 a share. The transaction was completed for $552,750,000.
Valuation Metrics
AppLovin Corporation (APP) has a trailing price-to-earnings (P/E) ratio of 763.33. Beta for the stock is 1.76. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 4.92, the price-to-book (PB) ratio of 9.70, and the price-to-cash flow ratio of 16.79.
Financial Health
For the three months ended June 29, AppLovin Corporation’s quick ratio was 2.90, while its current ratio was 2.90, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending June 29 is 2.09, and the total debt to equity ratio is 2.13. As far as profitability goes, gross margin for the trailing twelve months is 63.10% percent. AppLovin Corporation’s EBITDA margin for the year ended June 29 was 24.71%, whereas its operating margin stood at 7.60% for the same period. Based on annual data, it had gross profit of $1.56 billion and revenue of $2.82 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. APP’s return on assets (ROA) during the last 12 months has been 0.30%. There was a -0.70% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 1.10%.
Earnings Surprise
According to AppLovin Corporation’s quarterly financial report for the quarter that ended June 29. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $750.17 million, while revenues fell by -3.47% to $715.41 million. It was predicted that AppLovin Corporation’s quarterly earnings would be $0.22, but it ended up being $0.07, beating the consensus by 214.30%. EBITDA was $254.55 million for the quarter. At the end of AppLovin Corporation’s most recent quarter ended June 29, its liabilities totaled 3.96 billion, while its total debt was $3.27 billion. Equity owned by shareholders amounts to $347.8 million.
Technical Picture
Here’s a quick look at AppLovin Corporation’s (APP) price momentum from a technical perspective. As of 29 August, the RSI 9-day stood at 75.84%, suggesting the stock is Overbought, with a 28.41% historical volatility rate.
The stochastic %K and %D were 92.68% and 92.45% respectively, while the average true range (ATR) was 1.63. Based on the 14-day stochastic reading of 88.17%, the RSI (14) reading is 75.04%. On the 9-day MACD Oscillator, the stock is at 1.03, and the 14-day reading is at 1.24.
Analyst Ratings
In its most recent analyst report, Jefferies raised its rating on AppLovin Corporation (NASDAQ: APP) to a Buy. Prior to this, analysts firm rated the stock as a Hold. Analysts have assigned AppLovin Corporation (APP) an Overweight rating. APP is a stock that is recommended for selling by 1 brokerage firm, while 7 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 0 rates it overweight and 15 others recommend it as a buy.
What is APP’s price target for the next 12 months?
The current consensus forecast for the stock is between $20.00 and $57.00, with a median target price of $42.00. In analyzing these forecasts, the average price target given by analysts for AppLovin Corporation (APP) is $41.47.
