Verdence Capital Advises Increased Stake in AppLovin Co.

Verdence Capital Advisors LLC has significantly increased its investment in AppLovin Co. (NASDAQ:APP) by 128.9% during the third quarter, as reported in its latest 13F filing with the Securities and Exchange Commission (SEC). The advisory firm now holds 11,022 shares of AppLovin, having purchased an additional 6,206 shares over the quarter. Verdence Capital's overall equity in AppLovin is valued at $1.44 million based on the recent SEC disclosures.

Institutional Investors Update

Alongside Verdence, several other institutional investors have also adjusted their stakes in AppLovin. For example, Lone Pine Capital LLC increased its holdings in the company by 7.2% during the second quarter and now owns over 5.7 million shares, valued at approximately $474.56 million. Jericho Capital Asset Management L.P. raised its stake by 185% in the first quarter, acquiring nearly 3.9 million shares worth approximately $269.31 million. Additionally, Fred Alger Management LLC took a new position in the second quarter valued at around $290.65 million, while Whale Rock Capital Management LLC also entered the scene with new shares valued at about $195.13 million. A remarkable increase in stake was reported by 1832 Asset Management L.P., which raised its holdings by 977.2% and now owns about 1.5 million shares valued at approximately $124.52 million. Currently, about 41.85% of AppLovin's stock is held by institutional investors and hedge funds.

Current Stock Performance of AppLovin

As of last Friday, AppLovin's stock opened at $290.01. The company reports a debt-to-equity ratio of 4.27, along with a current ratio and quick ratio of 2.28 each. Over the past year, AppLovin has seen a low of $35.79 and a high of $292.86. The fifty-day moving average stands at $139.27, while the two-hundred-day moving average is $101.29. With a market capitalization of approximately $96.94 billion, AppLovin is reported to have a price-to-earnings (P/E) ratio of 87.88 and a beta of 1.86.

Earnings Reports Overview

AppLovin recently announced its quarterly earnings on November 6, revealing an earnings per share (EPS) of $1.25, which surpassed analysts' expectations of $0.92 by $0.33. The company achieved a net margin of 26.85% and a return on equity of 122.06%. The revenue reported for the quarter was $1.2 billion, exceeding estimates of $1.13 billion, marking a year-over-year revenue increase of 38.6% compared to the same quarter last year when it earned $0.30 EPS. Analysts forecast an EPS of 3.47 for the current fiscal year.

Analyst Predictions and Ratings

Several financial analysts have recently updated their price targets for AppLovin shares. Stifel Nicolaus has raised its target price from $185.00 to $250.00, rating the company as a 'buy'. Wedbush has also increased its price objective from $170.00 to $270.00 and maintained an 'outperform' rating. Daiwa Capital Markets changed its rating on AppLovin from 'neutral' to 'outperform', raising the target price from $80.00 to $280.00. JPMorgan Chase upped its price target to $200.00 from $160.00, advising a 'neutral' rating. Currently, one analyst rates the stock as a 'sell', four suggest holding, thirteen recommend buying, and one analyst has given it a 'strong buy' rating. The average analyst rating for AppLovin is classified as 'Moderate Buy' with an average price target of $182.31.

Insider Activity

In insider trading news, Director Dawson Alyssa Harvey sold 1,500 shares of AppLovin on September 10 at an average price of $87.90, totaling $131,850. Following this transaction, she holds 10,247 shares valued at about $900,711. Additionally, Chief Technology Officer Vasily Shikin disposed of 5,500 shares on September 9, selling them at an average price of $86.04 for $473,220. Insiders have sold a cumulative amount of 610,094 shares worth roughly $51.02 million over the last quarter. Currently, insiders own about 14.69% of the company's stock.

About AppLovin

AppLovin Corporation specializes in creating a software platform that aids advertisers with marketing and monetizing their content, both in the U.S. and globally. The company operates through two segments: Software Platform and Apps. Its software solutions include AppDiscovery, which connects advertiser demand with publisher supply; MAX, which facilitates in-app bidding for advertising inventory; Adjust, a platform for measurement and analytics; and Wurl, which enables connected TV video distribution and advertising solutions.

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