AppLovin Corporation (NASDAQ: APP) experienced a significant increase in its stock price, rising by 5.5% during mid-day trading on November 6, 2023. The shares peaked at $590.54 before settling at $586.37. Approximately 3,428,978 shares changed hands, marking a decline of 51% from the average daily volume of 7,028,395 shares. The stock had previously closed at $556.03.
Recent analyst evaluations have influenced AppLovin’s stock performance. In a research note dated November 6, Wedbush raised its target price for the company from $745.00 to $800.00 while rating it as “outperform.” Conversely, Wall Street Zen downgraded the stock from a “buy” to a “hold” rating on August 9. Citigroup revised its price target from $850.00 to $820.00, maintaining a “buy” rating. Similarly, BTIG Research increased its target price from $693.00 to $705.00. A total of 21 equity research analysts currently rate the stock as a “buy,” while four analysts recommend holding it and one has issued a “sell” rating. According to data from MarketBeat, the consensus rating stands at “Moderate Buy” with an average target price of $658.27.
Quarterly Earnings and Financial Performance
On November 5, AppLovin announced its quarterly earnings, reporting earnings per share (EPS) of $2.45, exceeding analysts’ expectations of $2.34 by $0.11. The company recorded a net margin of 51.27% and an impressive return on equity of 258.49%. Revenue for the quarter reached $1.41 billion, surpassing the consensus estimate of $1.34 billion, and reflecting a year-over-year increase of 68.2%. Looking ahead, AppLovin has set its guidance for Q4 2025 with an anticipated EPS of $6.87.
Insider Stock Activity
AppLovin’s recent insider activity also drew attention. On November 24, Chief Technology Officer Vasily Shikin sold 27,143 shares at an average price of $545.38, totaling approximately $14.8 million. Post-sale, Shikin retained 3,323,681 shares valued at around $1.81 billion, representing a 0.81% reduction in ownership.
Additionally, Chief Executive Officer Arash Adam Foroughi sold 30,888 shares on November 21 at an average price of $520.29, with a total value of approximately $16.07 million. Following this transaction, he continues to hold 2,553,161 shares, valued at about $1.33 billion, reflecting a 1.20% decrease in his position. Over the past ninety days, insiders have sold a total of 360,542 shares valued at $208.73 million. Notably, insiders own 13.66% of the company’s stock.
Institutional investors have also shown significant activity regarding AppLovin shares. Strategic Advocates LLC increased its stake by 0.8% in the third quarter, now holding 2,576 shares valued at approximately $1.85 million. Other notable movements include LWM Advisory Services LLC, which acquired a new position worth about $269,000, and CIBC Private Wealth Group LLC, boosting its position by 63.9% with 2,540 shares valued at around $1.83 million.
Overall, institutional investors and hedge funds own 41.85% of AppLovin’s stock. With a robust performance in earnings and active insider trading, AppLovin continues to attract attention in the market, positioning itself for future growth.
