JAT Capital Mgmt LP Acquires Shares in AppLovin Co.

JAT Capital Mgmt LP has recently acquired a new position in AppLovin Co. (NASDAQ:APP) during the third quarter, as revealed in its latest 13F filing with the Securities & Exchange Commission. The institutional investor purchased 95,000 shares of AppLovin's stock, for a total valuation of approximately $12,402,000. This investment represents about 2.0% of JAT Capital Mgmt LP's overall portfolio, making AppLovin its 18th largest holding.

Changes by Other Institutional Investors

Other institutional investors have also adjusted their positions in AppLovin recently. For instance, B. Riley Wealth Advisors Inc. acquired a new stake in the company in the first quarter, valued at about $474,000. Meanwhile, the California State Teachers Retirement System increased its stake in AppLovin by 47.7% during the same period, bringing its total ownership to 241,197 shares worth approximately $16,696,000 after adding 77,914 shares. Other notable investors include Tidal Investments LLC and Swedbank AB, who purchased new stakes worth $236,000 and $870,000 respectively. Collectively, institutional investors now own approximately 41.85% of AppLovin's stock.

Insider Trading Activity

In related news, some company insiders have been active in the stock market. Director Eduardo Vivas sold 30,330 shares on November 26, which were valued at an average price of $330.67, totaling to about $10,029,221. Following this sale, Vivas holds 90,576 shares valued at approximately $29,950,766, reflecting a 25.09% reduction in his position. Similarly, Chief Technology Officer Vasily Shikin sold 154,500 shares on September 6, at an average price of $84.14, evaluating to about $12,999,630. After this sale, he retains 4,530,455 shares valued at around $381,192,484, resulting in a 3.30% decrease in ownership. Over the past 90 days, insiders have sold a total of 884,395 shares valued at $243,101,629, while insiders own approximately 14.69% of the company's stock.

AppLovin's Stock Performance

As of the latest trading, AppLovin stock opened at $336.75. The company boasts a market capitalization of $113.01 billion, and currently holds a P/E ratio of 102.05 along with a P/E/G ratio of 4.05. AppLovin's stock has seen significant fluctuations with a 12-month low of $35.79 and a high of $344.77. The company's 50-day moving average stands at $197.69, and the 200-day moving average is $123.96. Financially, AppLovin has a current ratio and quick ratio of 2.41 and a debt-to-equity ratio of 3.70.

Recent Earnings and Analysts’ Predictions

AppLovin posted its latest earnings results on November 6, reporting an EPS of $1.25, which exceeded analysts' expectations of $0.92 by $0.33. The firm noted a net margin of 26.85% and an impressive return on equity of 122.24%. Revenue for the quarter reached $1.20 billion, against expectations of $1.13 billion, marking a year-over-year revenue increase of 38.6%. Analysts predict that AppLovin will report an EPS of 4.06 for the current year.

Analyst Ratings and Future Outlook

Several investment analysts have recently shared their views on AppLovin shares. UBS Group upgraded AppLovin from a "neutral" to a "buy" rating and raised their target price from $100.00 to $145.00. Daiwa Capital Markets also upgraded the stock from "neutral" to "outperform" and raised its target price from $80.00 to $280.00. Needham & Company LLC maintained a "hold" rating, while Piper Sandler began coverage with an "overweight" rating and a target price of $400.00. Similarly, Macquarie raised their price target from $150.00 to $270.00, giving AppLovin an "outperform" rating. Overall, the stock holds a consensus rating of "Moderate Buy" with an anticipated price target of $265.57.

About AppLovin

AppLovin Corporation specializes in developing a software-based platform that enables advertisers to enhance the marketing and monetization of their content both in the United States and globally. The company operates in two main segments: Software Platform and Apps. Its software solutions include AppDiscovery, MAX, Adjust, and Wurl, each designed to support various advertising and analytics needs.

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