AllianceBernstein Increases Stake in AppLovin Co.

AllianceBernstein L.P. has increased its investment in AppLovin Co. (NASDAQ:APP) by 193.6% during the fourth quarter, according to the latest 13F filing with the Securities and Exchange Commission. The firm now holds a total of 2,725,101 shares of AppLovin, having purchased an additional 1,797,027 shares during this period. This investment is valued at approximately $882.47 million, representing about 0.81% ownership in the company.

Changes by Other Investors

In addition to AllianceBernstein, other institutional investors have also made adjustments to their holdings in AppLovin. For example, AIA Group Ltd purchased a new stake in the company during the fourth quarter, valued at $449,000. O'Shaughnessy Asset Management LLC increased its share count by 1.3%, owning 406,405 shares now worth around $131.61 million after buying an extra 5,087 shares. Clearbridge Investments LLC raised its position in AppLovin by 6.9%, resulting in ownership of 947,642 shares valued at $306.88 million after acquiring an additional 61,152 shares. CIBC Private Wealth Group LLC had a staggering growth in holdings, increasing by 27,065.4%, ultimately owning 148,323 shares valued at about $48.83 million. Finally, Summit Securities Group LLC invested about $94,000 in a new position in AppLovin. Overall, institutional investors now hold 41.85% of AppLovin’s stock.

Analysts’ Opinions

Recent analysis from equities research firms has shown strong interest in AppLovin's stock. Macquarie raised its target price for AppLovin from $270 to $450, categorizing it as an “outperform” in a noted report. Arete Research has set its price target at $200. Piper Sandler has updated its price target from $400 to $575, giving it an “overweight” rating. Citigroup also increased its target from $460 to $600 with a “buy” recommendation. Loop Capital maintained a “buy” rating on the stock recently. In total, one analyst has a sell rating, four have issued hold ratings, while fifteen have provided buy ratings, with one stating it as a strong buy. According to data from MarketBeat.com, AppLovin is currently rated as a “Moderate Buy” with an average price target of $435.47.

Insider Trading Activity

Recent insider transactions have been noted as well. Vasily Shikin, the CTO of AppLovin, sold 17,500 shares on March 10, with an average sale price of $241.65, totaling about $4.23 million. After this transaction, he now holds 88,389 shares valued at approximately $21.36 million, reflecting a decrease of 16.53% in his holdings. Similarly, CEO Arash Adam Foroughi sold 45,000 shares at an average price of $422.21, generating about $19 million. Following this sale, he holds 2,914,492 shares worth roughly $1.23 billion, marking a 1.52% decrease. In total, insiders have sold 306,900 shares valued at approximately $106.40 million over the past three months, with corporate insiders owning 14.69% of AppLovin’s stocks.

Market Performance

On Monday, AppLovin’s stock opened at $272.38. The company has demonstrated significant volatility, showcasing a fifty-two week low of $60.67 and a high of $525.15. It has a market capitalization of $92.60 billion, a P/E ratio of 60.00, and a price-to-earnings-growth ratio of 3.02. Furthermore, its beta stands at 2.33. Financial ratios reveal a debt-to-equity ratio of 3.70, with both a quick and current ratio of 2.41. AppLovin's most recent earnings announcement highlighted an EPS of $1.73, exceeding estimates of $1.12, resulting in a net margin of 33.54% and a strong return on equity of 188.55%. Analysts predict AppLovin will achieve an EPS of 6.87 for the current fiscal year.

Company Overview

AppLovin Corporation focuses on developing a software platform that enhances marketing and monetization for advertisers. It operates primarily through two segments: Software Platform and Apps. The company’s offerings include AppDiscovery, which connects advertiser demand with publisher supply through dynamic auctions; MAX, an in-app bidding software; Adjust, a measurement and analytics marketing platform; and Wurl, a platform catering to connected TV companies.

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