AppLovin Corporation [APP] is 43.45% higher this YTD. Is it still time to buy?


AppLovin Corporation [NASDAQ: APP] closed the trading session at $93.53 on 12/03/21. The day’s price range saw the stock hit a low of $81.45, while the highest price level was $96.19. The company report on December 3, 2021 that AppLovin Announces Pricing of Upsized Secondary Offering.

AppLovin Corporation (Nasdaq: APP) (“AppLovin”), a leading marketing software company, announced the pricing of its upsized underwritten offering of 7,500,000 shares of its Class A common stock, at a public offering price of $83.00 per share, with all shares offered by certain of AppLovin’s stockholders, including KKR Denali Holdings L.P (the “Selling Stockholders”). KKR Denali Holdings L.P. has also granted the underwriters a 30-day option to purchase up to an additional 1,125,000 shares of Class A common stock. The offering is expected to close on December 7, 2021, subject to customary closing conditions. The Selling Stockholders will receive all of the proceeds from the offering. AppLovin is not offering any shares of its common stock in the offering.

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J.P. Morgan, BofA Securities, Citigroup and Morgan Stanley are acting as lead book-running managers for the offering. Credit Suisse, UBS Investment Bank and Goldman Sachs & Co. LLC are acting as additional book-running managers for the offering. Oppenheimer & Co. Inc., Stifel, William Blair, LionTree, LUMA Securities, The Raine Group, Blaylock Van, LLC, Guzman & Company, Roberts & Ryan and R. Seelaus & Co., LLC are acting as co-managers for the offering.

The stocks have a year to date performance of 43.45 percent and weekly performance of 3.11 percent. The stock has been moved at 21.07 percent over the last six months. The stock has performed -4.91 percent around the most recent 30 days and changed 19.94 percent over the most recent 3-months.

If compared to the average trading volume of 1.69M shares, APP reached to a volume of 29075681 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say about AppLovin Corporation [APP]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for APP shares is $113.40 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on APP stock is a recommendation set at 1.70. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

BTIG Research have made an estimate for AppLovin Corporation shares, keeping their opinion on the stock as Buy, with their previous recommendation back on October 27, 2021. While these analysts kept the previous recommendation, Stifel raised their target price from $65 to $90. The new note on the price target was released on September 09, 2021, representing the official price target for AppLovin Corporation stock. Previously, the target price had yet another raise to $90, while Macquarie analysts kept a Outperform rating on APP stock. On August 17, 2021, analysts decreased their price target for APP shares from 68 to 60.

The Average True Range (ATR) for AppLovin Corporation is set at 6.52, with the Price to Sales ratio for APP stock in the period of the last 12 months amounting to 13.43. The Price to Book ratio for the last quarter was 16.82, with the Price to Cash per share for the same quarter was set at 2.81. Price to Free Cash Flow for APP in the course of the last twelve months was 103.54 with Quick ratio for the last quarter at 2.90.

APP stock trade performance evaluation

AppLovin Corporation [APP] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 3.11. With this latest performance, APP shares dropped by -4.91% in over the last four-week period, additionally plugging by 21.07% over the last 6 months.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for APP stock in for the last two-week period is set at 48.56, with the RSI for the last a single of trading hit 47.80, and the three-weeks RSI is set at 50.23 for AppLovin Corporation [APP]. The present Moving Average for the last 50 days of trading for this stock 92.02, while it was recorded at 90.27 for the last single week of trading.

AppLovin Corporation [APP]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and AppLovin Corporation [APP] shares currently have an operating margin of +1.42 and a Gross Margin at +60.91. AppLovin Corporation’s Net Margin is presently recorded at -8.63.

Return on Total Capital for APP is now 1.66, given the latest momentum, and Return on Invested Capital for the company is -10.32. Additionally, APP Total Debt to Total Capital is recorded at 110.30, with Total Debt to Total Assets ending up at 78.82.

Reflecting on the efficiency of the workforce at the company, AppLovin Corporation [APP] managed to generate an average of -$138,788 per employee. Receivables Turnover for the company is 6.33 with a Total Asset Turnover recorded at a value of 0.86.AppLovin Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.90 and a Current Ratio set at 2.90.

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AppLovin Corporation [APP]: Insider Ownership positions

There are presently around $13,638 million, or 17.10% of APP stock, in the hands of institutional investors. The top three institutional holders of APP stocks are: KOHLBERG KRAVIS ROBERTS & CO. L.P. with ownership of 108,050,489, which is approximately 0% of the company’s market cap and around 26.50% of the total institutional ownership; SPRUCE HOUSE INVESTMENT MANAGEMENT LLC, holding 5,000,000 shares of the stock with an approximate value of $467.65 million in APP stocks shares; and BLACKROCK INC., currently with $376.38 million in APP stock with ownership of nearly 39.396% of the company’s market capitalization.

Positions in AppLovin Corporation stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 94 institutional holders increased their position in AppLovin Corporation [NASDAQ:APP] by around 15,808,245 shares. Additionally, 33 investors decreased positions by around 3,684,335 shares, while 16 investors held positions by with 126,316,874 shares. The mentioned changes placed institutional holdings at 145,809,454 shares, according to the latest SEC report filing. APP stock had 53 new institutional investments in for a total of 4,711,957 shares, while 17 institutional investors sold positions of 2,288,006 shares during the same period.