Piper Sandler has recently initiated Applovin Corp (APP) stock to Overweight rating, as announced on November 20, 2024, according to Finviz. Earlier, on November 8, 2024, Daiwa Securities had raised the stock from a Neutral to Outperform, setting a price target of $280 for APP stock. Wells Fargo also initiated Overweight rating with a price target of $200. Additionally, Loop Capital initiated Buy rating on October 22, 2024, with a target price of $181. Goldman analysts, in their report published on October 14, 2024, also reduced Neutral rating and set a price target of $103 for Applovin Corp’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Applovin Corp (APP) Stock Trading Recap
On Tuesday, Applovin Corp (APP) stock saw a modest uptick, ending the day at $366.55 which represents a slight increase of $25.96 or 7.62% from the prior close of $340.59. The stock opened at $338 and touched a low of $338 during the day, reaching a high of $372.57. The volume of shares traded was 7.35 million exceeding the average volume of 5.47 million.
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APP Stock Performance and Moving Averages
In recent trading, Applovin Corp (APP) stock price has shown some volatility, fluctuating 14.69% over the last five trades and 124.15% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 348.98%, and it has gained 317.10% in the previous three months. Currently, APP is trading at 23.77%, 77.13%, and 230.08% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, APP, a Technology sector stock, is trading 5.45% below its 52-week high but remains 924.17% above its 52-week low. The Average True Range (ATR) (14 days) of 19.34 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Applovin Corp’s Profitability and Valuation Ratios
Applovin Corp’s profitability metrics reveal financial health. The company currently boasts an operating margin of 35.95% and a profit margin of 26.82%, with a gross margin of 348.98%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Applovin Corp’s market capitalization stands at $123.01 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 110.91, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 63.02. Additionally, the Price-to-Sales Ratio is 28.68, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 131.07, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 0.00% of Applovin Corp (APP)’s shares, while financial institutions hold 55.93%.
Notable insider trades include Georgiadis Mary Margaret Hasti, Director at Applovin Corp (APP), who sold 30500 shares on Nov 29 ’24, at $339.69 each, totaling $10.36 million. On Nov 27 ’24, Harvey Dawson Alyssa, Director, sold 3000 shares for $325.76 each, amounting to $0.98 million. Additionally, on Nov 26 ’24, Vivas Eduardo sold 30330 shares at $330.67 each, generating $10.03 million.
