As of Wednesday close, AppLovin Corporation’s (NASDAQ:APP) stock was down -$0.4, moving down -1.01 percent to $39.33. The average number of shares traded per day over the past five days has been 5,013,700 shares. 2 times new highs have been achieved over the past 5 days, with a -$1.48 fall in that time frame. In the last twenty days, the average volume was 2,809,265, while in the previous 50 days, it was 2,869,468.
Since last month, APP stock rose 0.82%. Shares of the company fell to $38.13 on 08/21/23, the lowest level in the past month. A 52-week high of $44.89 was reached on 09/18/23 after having rallying from a 52-week low of $9.14. Since the beginning of this year, APP’s stock price has risen by 273.50% or $28.80, and marked a new high 45 times. However, the stock has declined by -12.39% since its 52-week high.
APP stock investors should be aware that AppLovin Corporation (APP) stock had its last reported insider trading activity 8 days ago on Sep 13. Vivas Eduardo, the Director of the company, disposed of 377,318 shares for $41.15 on Sep 13. It resulted in a $15,525,113 divestment by the insider. Vivas Eduardo sold 1,196 shares at an average price of $41.15 on Sep 13. The insider now owns 124,136 shares following the transaction. On Sep 12, Director Vivas Eduardo sold 474,357 shares at $41.76 apiece. The transaction was valued at $19,809,148.
Valuation Metrics
Right now, AppLovin Corporation (APP) has a P/E ratio of about 728.33. The stock’s beta is 1.83. Besides these, the trailing price-to-sales (P/S) ratio of 4.72, the price-to-book (PB) ratio of 9.25, and the price-to-cash flow ratio of 16.12 may also be considered.
Financial Health
In the three months ended June 29, AppLovin Corporation’s quick ratio stood at 2.90, while its current ratio was 2.90, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending June 29 was 2.09, and the total debt-to-equity ratio was 2.13. On the profitability front, the trailing twelve-month gross margin is 63.10% percent. In the year ended June 29, EBITDA margin amounted to 24.71%, whereas operating margins totaled 7.60%. Based on annual data, APP earned $1.56 billion in gross profit and brought in $2.82 billion in revenue.
A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was -0.70%. Return on equity (ROE) for the past 12 months was 1.10%.
In AppLovin Corporation’s quarter-end financial report for June 29, it reported total debt of $3.17 billion. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. APP’s revenue fell -3.47% to $715.41 million during the quarter, while net income inched up to $750.17 million. While analysts expected AppLovin Corporation to report $0.07 quarterly earnings, the actual figure was $0.22 per share, beating the consensus estimate by 214.30%. During the quarter, the company generated $254.55 million in EBITDA. The liabilities of AppLovin Corporation were 3.96 billion at the end of its most recent quarter ended June 29, and its total debt was $3.27 billion. The value of shareholders’ equity is $347.8 million.
Technical Picture
This quick technical analysis looks at AppLovin Corporation’s (APP) price momentum. With a historical volatility rate of 60.83%, the RSI 9-day stood at 39.63% on 20 September.
With respect to its five-day moving average, the current AppLovin Corporation price is down by -3.63% percent or -$1.48. At present, APP shares trade -0.38% below its 20-day simple moving average and +130.95% percent above its 100-day simple moving average. However, the stock is currently trading approximately +40.01% above its SMA50 and +175.23% above its SMA200.
Stochastic coefficient K was 32.62% and Stochastic coefficient D was 56.05%, while ATR was 1.89. Given the Stochastic reading of 5.28% for the 14-day period, the RSI (14) reading has been calculated as 47.79%. As of today, the MACD Oscillator reading stands at -0.70, while the 14-day reading stands at -1.06.
Analyst Ratings
Jefferies upgraded its rating on AppLovin Corporation (NASDAQ: APP) to a Buy in a note to investors on August 22, 2023. The analysts firm previously had a Hold rating on the stock.AppLovin Corporation (APP) has been rated Overweight by analysts. According to 1 brokerage firm, APP is a sell, and 6 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 0 analysts rate AppLovin Corporation stock as buy, with 14 recommending it as overweight.
With a median target price of $45.00, the current consensus forecast for the stock is $22.00 – $57.00. Based on these forecasts, analysts predict AppLovin Corporation (APP) will achieve an average price target of $43.84.
