Hudson Bay Capital Management LP significantly increased its stake in AppLovin Corporation during the second quarter of 2023. The institutional investor raised its holdings by an impressive 288.6%, acquiring an additional 24,748 shares to bring its total to 33,323 shares. This expansion reflects an investment valued at approximately $11,666,000 as of the end of the quarter.
Other institutional investors also entered or expanded their positions in AppLovin during this period. For instance, Hilltop National Bank and LFA Lugano Financial Advisors SA each acquired new shares valued at $26,000. Additionally, Twin Peaks Wealth Advisors LLC invested $33,000, while Hoey Investments Inc. and Trust Co. of Vermont each made new purchases valued at $35,000. Collectively, institutional investors and hedge funds hold around 41.85% of AppLovin’s stock.
Insider Trading Activity Raises Interest
In related news, significant insider transactions have occurred within the company. CEO Arash Adam Foroughi sold 30,888 shares on November 21, 2023, at an average price of $520.29, resulting in a total transaction value of approximately $16,070,717.52. After this transaction, Foroughi still holds 2,553,161 shares, valued at around $1,328,384,136.69, marking a 1.20% decrease in his ownership.
Moreover, Director Eduardo Vivas sold 150,000 shares on November 10, 2023, at an average price of $650.91, totaling about $97,636,500.00. This sale reduced Vivas’s stake to 7,133,292 shares, now valued at approximately $4,643,131,095.72, reflecting a 2.06% decrease in his holdings. Over the past three months, insiders have sold a total of 332,727 shares worth approximately $195,062,520, with insiders owning about 13.66% of the company.
Stock Performance and Financial Overview
As of Monday, AppLovin stock opened at $670.67. The company’s stock has seen a twelve-month low of $200.50 and a high of $745.61. AppLovin carries a debt-to-equity ratio of 2.38, with both a quick ratio and current ratio of 3.25. The company boasts a market capitalization of $226.65 billion and a price-to-earnings (P/E) ratio of 81.39.
In its most recent earnings report, released on November 5, 2023, AppLovin announced earnings per share (EPS) of $2.45, surpassing analysts’ expectations of $2.34 by $0.11. The company reported a net margin of 51.27% and a remarkable return on equity of 258.49%. Revenue for the quarter reached $1.41 billion, exceeding the anticipated $1.34 billion and reflecting a year-over-year growth of 68.2%.
Research analysts project that AppLovin Corporation will achieve an EPS of 6.87 for the current fiscal year.
AppLovin Corporation operates a software-based platform that enhances marketing and monetization for advertisers both in the United States and internationally. The company is structured into two main segments: Software Platform and Apps. Its offerings include AppDiscovery, a marketing software that facilitates demand and supply matching through auctions; MAX, an in-app bidding software; Adjust, a measurement and analytics platform; and Wurl, a connected TV platform.
For more information on AppLovin’s financial status and insider trades, resources such as HoldingsChannel.com provide detailed insights on recent filings.
