AppLovin Corporation (NASDAQ: APP) stock fell -1.56% on Thursday to $24.05 against a previous-day closing price of $24.43. With 1.91 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.77 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $25.02 whereas the lowest price it dropped to was $23.65. The 52-week range on APP shows that it touched its highest point at $44.76 and its lowest point at $9.14 during that stretch. It currently has a 1-year price target of $24.18.
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Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of APP was down-trending over the past week, with a drop of -4.11%, but this was up by 50.88% over a month. Three-month performance surged to 69.25% while six-month performance rose 72.28%. The stock lost -27.39% in the past year, while it has gained 128.40% so far this year. A look at the trailing 12-month EPS for APP yields -0.22 with Next year EPS estimates of 0.61. For the next quarter, that number is 0.08. This implies an EPS growth rate of -657.70% for this year and 109.90% for next year.
Float and Shares Shorts:
At present, 373.16 million APP shares are outstanding with a float of 109.92 million shares on hand for trading. On May 14, 2023, short shares totaled 15.06 million, which was 4.13% higher than short shares on Apr 13, 2023. In addition to Mr. Adam Arash Foroughi as the firm’s Co-Founder, CEO & Chairperson, Mr. Herald Y. Chen serves as its Pres, CFO, Principal Accounting Officer & Director.
Institutional Ownership:
Through their ownership of 54.20% of APP’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 48.17% of APP, in contrast to 22.42% held by mutual funds. Shares owned by individuals account for 13.57%. As the largest shareholder in APP with 5.00% of the stake, The Vanguard Group, Inc. holds 14,636,405 shares worth 14,636,405. A second-largest stockholder of APP, SVB Wealth LLC, holds 13,800,500 shares, controlling over 4.71% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in APP, holding 7,346,655 shares or 2.51% stake. With a 1.71% stake in APP, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 5,002,518 shares are owned by the mutual fund manager. The Vanguard Small Cap Index Fund, which owns about 1.44% of APP stock, is the second-largest Mutual Fund holder. It holds 4,216,835 shares valued at 71.69 million. First Trust Cloud Computing ETF holds 1.16% of the stake in APP, owning 3,402,671 shares worth 57.85 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, APP reported revenue of $776.23M and operating income of $53.35M. The EBITDA in the recently reported quarter was $53.87M and diluted EPS was -$0.06.
Analysts Ratings:
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for APP since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With APP analysts setting a high price target of $49.00 and a low target of $14.00, the average target price over the next 12 months is $24.91. Based on these targets, APP could surge 103.74% to reach the target high and fall by -41.79% to reach the target low. Reaching the average price target will result in a growth of 3.58% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Summary of Insider Activity:
Insiders traded APP stock several times over the past three months with 4 Buys and 3 Sells. In these transactions, 14,844,944 shares were bought while 455,261 shares were sold. The number of buy transactions has increased to 15 while that of sell transactions has risen to 58 over the past year. The total number of shares bought during that period was 17,497,478 while 6,230,728 shares were sold.
