Fox Run Management L.L.C. has significantly reduced its stake in AppLovin Corporation, selling 1,155 shares and lowering its holdings by 59.2% in the second quarter of 2023. According to the company’s latest Form 13F filing with the Securities and Exchange Commission, Fox Run now owns 797 shares, valued at approximately $279,000.
This divestment occurs as several other institutional investors also adjust their positions in AppLovin (NASDAQ: APP). Notably, Hilltop National Bank entered the market with a new investment worth about $26,000 during the same quarter. Similarly, SouthState Corp and Hoey Investments Inc. acquired new stakes valued at approximately $29,000 and $35,000, respectively. Trust Co. of Vermont made a comparable investment of $35,000 in the quarter as well.
In a contrasting move, ORG Partners LLC increased its stake by 146.5%, bringing its total to 106 shares, which are now valued at around $36,000. Currently, institutional investors and hedge funds collectively hold 41.85% of AppLovin’s stock.
Market Reactions and Analyst Ratings
Recent reports from various equities research analysts indicate a mixed outlook for AppLovin. On November 6, 2023, JPMorgan Chase & Co. raised its target price for AppLovin shares from $425.00 to $650.00, maintaining a “neutral” rating. Conversely, Citigroup adjusted its price objective down to $820.00 while keeping a “buy” rating. Meanwhile, Royal Bank Of Canada increased its price target to $750.00 and issued an “outperform” rating.
Overall, twenty-one analysts have rated AppLovin with a “buy” rating, while four have issued a “hold” rating, and one has assigned a “sell” rating, according to data from MarketBeat.com. The average rating stands at “Moderate Buy,” with an average price target of $658.27.
Insider Trading Activities
In related developments, AppLovin’s Director, Eduardo Vivas, sold 150,000 shares on November 10, 2023, at an average price of $650.91, resulting in a transaction worth approximately $97.64 million. Post-sale, Vivas holds 7,133,292 shares, valued at around $4.64 billion, reflecting a 2.06% decrease in his position.
Additionally, CEO Arash Adam Foroughi sold 90,000 shares on August 21, 2023, at an average price of $421.04, totaling approximately $37.89 million. Following this transaction, Foroughi retains 2,620,054 shares, valued at about $1.10 billion, which is a 3.32% reduction in his ownership.
Over the past 90 days, corporate insiders have sold a total of 484,338 shares valued at around $243.01 million, with insiders now owning 13.66% of AppLovin’s stock.
Company Performance and Future Outlook
AppLovin’s stock opened at $556.15 recently, and the company boasts a market capitalization of $188.12 billion. Its price-to-earnings (P/E) ratio stands at 67.49, with a price-to-earnings-growth (PEG) ratio of 3.14. Over the last year, the stock has experienced significant volatility, with a low of $200.50 and a high of $745.61.
The company reported its quarterly earnings on November 5, 2023, revealing earnings per share (EPS) of $2.45, exceeding analysts’ expectations of $2.34 by $0.11. Revenue for the quarter reached $1.41 billion, surpassing forecasts of $1.34 billion. This performance reflects a remarkable 68.2% increase compared to the same quarter last year.
Looking ahead, analysts predict that AppLovin Corporation will post an EPS of 6.87 for the current fiscal year. The company specializes in creating a software-based platform aimed at enhancing advertising and monetization for content creators. With a diverse range of solutions, including AppDiscovery and MAX, AppLovin continues to position itself as a key player in the digital advertising space.
For ongoing updates and insights on AppLovin, investors can monitor sources such as HoldingsChannel.com and MarketBeat.com for the latest 13F filings and insider trading activity.
