AppLovin Corporation

(NASDAQ Global Select)
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Bullish +62

Cozad Asset Management Inc. Sells 2,974 Shares of AppLovin Corporation ...

AI-generated analysis

📉 Cozad Asset Management Inc. sold 2,974 shares of AppLovin in Q1, reducing its stake by 7.4% to a total holding of 37,270 shares.

📈 Other hedge funds including Revolve Wealth Partners and Integrated Wealth Concepts increased their AppLovin positions during the fourth and first quarters.

💰 Institutional ownership stands at 41.85%, with Treasurer of the State of North Carolina holding a significant stake worth $48.7 million.

📊 Analyst consensus is 'Moderate Buy' with an average price target of $668.45, supported by strong-buy ratings from Raymond James and Needham.

💼 CEO Arash Adam Foroughi sold 33,042 shares in June for approximately $16.1 million, representing a 1.38% decrease in his personal ownership.

📉 Insider selling is notable with Victoria Valenzuela also offloading 20,000 shares in early June, totaling $197.3 million in insider sales over three months.

💵 AppLovin reported Q1 revenue of $1.84 billion, beating estimates by $70 million and growing 58.9% year-over-year.

📈 The company achieved a net margin of 64.29% and EPS of $3.56, surpassing the consensus estimate of $3.44.

🔮 Analysts forecast full-year EPS of 15.93 for AppLovin Corporation.

📉 Stock technicals show APP trading below its 50-day moving average of $491.19 but above its 200-day average of $472.27.

Bullish Signals
  • AppLovin reported Q1 revenue of $1.84 billion, which beat the consensus estimate of $1.77 billion by $70 million.
  • The company achieved a net margin of 64.29% and a return on equity of 219.37%, indicating strong profitability.
  • Revenue grew 58.9% year-over-year compared to the same quarter last year.
  • Analysts forecast full-year EPS of 15.93, suggesting continued growth expectations.
  • Raymond James Financial issued a 'strong-buy' rating with a $640 price objective.
  • Needham & Company LLC restated a 'buy' rating and set a high price target of $700.
  • Wells Fargo upgraded its price objective to $575 and maintained an 'overweight' rating.
  • The company has a low PEG ratio of 0.65, suggesting the stock may be undervalued relative to growth.
Risk Factors
  • CEO Arash Adam Foroughi sold 33,042 shares in June for $16.1 million, signaling potential insider caution.
  • Insiders collectively sold 393,000 shares valued at $197.3 million over the last three months.
  • Cozad Asset Management Inc. reduced its holdings by 7.4% in Q1, indicating a decrease in institutional confidence from this specific firm.
  • The stock is currently trading below its 50-day moving average of $491.19.
Full Analysis
Cozad Asset Management Inc. reduced its holdings in AppLovin Corporation (NASDAQ:APP) by 7.4% in the first quarter, selling 2,974 shares to leave a position of 37,270 shares valued at $14.8 million. This reduction makes APP the firm's 21st largest holding, representing approximately 1.2% of its portfolio. While Cozad decreased its stake, other institutional investors like Revolve Wealth Partners and Integrated Wealth Concepts increased their positions during the fourth and first quarters respectively. Analyst sentiment remains largely positive with a consensus 'Moderate Buy' rating and an average price target of $668.45. Major firms including Raymond James, Morgan Stanley, Needham, and Wells Fargo have issued strong-buy or overweight ratings with price targets ranging from $575 to $700. JPMorgan Chase recently lifted its price target to $515 while maintaining a neutral rating. Insider activity shows significant selling pressure in June, with CEO Arash Adam Foroughi selling 33,042 shares for approximately $16.1 million and insider Victoria Valenzuela selling 20,000 shares for roughly $11.3 million. Over the last three months, insiders collectively sold 393,000 shares valued at nearly $197.3 million, though they still retain 12.81% of the company's stock. Financially, AppLovin reported strong Q1 results with revenue of $1.84 billion, beating estimates by $70 million and representing a 58.9% year-over-year increase. The company posted earnings per share of $3.56 against a consensus of $3.44, achieving a net margin of 64.29% and a return on equity of 219.37%. Analysts forecast full-year EPS of 15.93.