JAT Capital Mgmt LP Acquires Shares in AppLovin Co.

JAT Capital Mgmt LP has recently made a significant investment in AppLovin Co. (NASDAQ:APP) during the third quarter. According to the latest 13F filing with the Securities and Exchange Commission, JAT Capital acquired 95,000 shares of AppLovin, with a total valuation of around $12,402,000. This investment constitutes about 2.0% of JAT Capital's overall portfolio, ranking AppLovin as the firm's 18th largest holding.

Recent Changes by Other Investors

Other institutional investors have also been active in modifying their stake in AppLovin. For instance, B. Riley Wealth Advisors Inc. initiated a new position in AppLovin in the first quarter, investing approximately $474,000. Additionally, the California State Teachers Retirement System increased its holdings by 47.7% during the same period, bringing its total ownership to 241,197 shares, valued at about $16,696,000. Tidal Investments LLC added a new stake worth $236,000 in the first quarter as well. Other notable purchases include investments from Swedbank AB for about $870,000 and Cetera Advisors LLC, which invested approximately $675,000. Overall, institutional investors hold 41.85% of the company's total shares.

Insider Transactions

In addition to institutional investments, there have been notable insider transactions. Director Eduardo Vivas sold 30,330 shares on November 26 at an average price of $330.67, amounting to a total of $10,029,221. Following the sale, Vivas retains ownership of 90,576 shares valued at approximately $29,950,766, indicating a 25.09% reduction in his stake. Meanwhile, Chief Technology Officer Vasily Shikin sold 154,500 shares on September 6 for an average price of $84.14, totaling $12,999,630. Following this transaction, Shikin now holds 4,530,455 shares worth about $381,192,484, marking a 3.30% decrease in ownership. Over the past 90 days, insiders have collectively sold 884,395 shares, with insiders now owning 14.69% of the company's stock.

AppLovin's Stock Performance

As of recent trading, AppLovin shares were opening at $336.75, with a market capitalization of $113.01 billion. The stock has a P/E ratio of 102.05 and a P/E/G ratio of 4.05. AppLovin's stock has experienced significant fluctuations, with a 12-month low of $35.79 and a high of $344.77. The average price over the last 50 days stands at $197.69, while the 200-day average is $123.96.

The company reported its latest earnings on November 6, where it posted earnings of $1.25 per share, surpassing the expected $0.92. AppLovin recorded a net margin of 26.85% and a remarkable return on equity of 122.24%. The total revenue for the quarter reached $1.20 billion, above analysts' expectations of $1.13 billion, representing a year-over-year increase of 38.6%.

Analyst Ratings and Forecasts

AppLovin has attracted attention from various analysts recently. UBS Group upgraded the stock from a "neutral" to a "buy" rating, raising the price target from $100.00 to $145.00 on September 17. Daiwa Capital Markets also changed its stance, increasing the rating from "neutral" to "outperform" with a price target boost from $80.00 to $280.00. Meanwhile, Needham & Company LLC reiterated a "hold" rating. Several analysts have rated the stock positively, with one sell rating, four hold ratings, fourteen buy ratings, and one strong buy rating, leading to a consensus rating of "Moderate Buy" and a target price of $265.57.

Company Overview

AppLovin Corporation focuses on building software solutions for advertisers to enhance the marketing and monetization of their content. The company operates through segments such as Software Platform and Apps. Their software offerings include AppDiscovery, a marketing tool that aligns advertiser demand with publisher supply; MAX, an in-app bidding system; Adjust, which provides measurement and analytics; and Wurl, a connected TV platform for distributing streaming video.

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