PALO ALTO, CA – Katie Kihorany Jansen, Chief Marketing Officer of AppLovin Corp (NASDAQ:APP), has sold shares worth approximately $34.26 million, according to a recent SEC filing. The transactions, which took place on November 12 and 13, involved the sale of Class A Common Stock at prices ranging from $278.97 to $291.01 per share.
The sales were executed in multiple trades, with Jansen disposing of a total of 119,856 shares. Following these transactions, Jansen retains direct ownership of 957,512 shares, with additional shares held indirectly through The Jansen Family Trust.
AppLovin, headquartered in Palo Alto, California, operates in the technology sector, specializing in services related to computer programming and data processing. The company's stock is traded on the NASDAQ under the ticker symbol APP.
In other recent news, AppLovin Corp has been the focus of significant analyst attention following its impressive financial performance. Loop Capital has upgraded its stock price target for AppLovin to $385.00, up from the previous target of $181.00, maintaining a Buy rating. This adjustment was prompted by AppLovin's exceptional financial results, which surpassed market expectations. The firm's new price target is based on a 30X adjusted EBITDA multiple applied to AppLovin's software business, an increase from the prior 17.5X.
In the third quarter, AppLovin achieved robust revenue growth, reaching $1.2 billion, a 39% increase year-over-year. This growth was primarily driven by the company's advertising network's exceptional performance within the gaming sector. Additionally, revenues from AppLovin's Software (ETR:SOWGn) Platform surged by 66% compared to the same period last year.
Daiwa Securities also upgraded AppLovin's stock from a Neutral rating to Outperform, following these strong results, and significantly increased the price target to $280 from the previous $80. AppLovin's recent earnings call revealed expectations for Q4 2024 revenue to be between $1.24 billion and $1.26 billion, with adjusted EBITDA expectations of $740 million to $760 million. These recent developments indicate positive future performance for AppLovin.
InvestingPro Insights
The recent stock sale by AppLovin's CMO Katie Kihorany Jansen comes at a time when the company's shares are trading near their 52-week high, with an impressive year-to-date price return of 613.9%. This aligns with one of the InvestingPro Tips, which notes that APP is "Trading near 52-week high." The strong performance is further underscored by the company's robust financial metrics.
According to InvestingPro Data, AppLovin's revenue for the last twelve months as of Q3 2024 stood at $4.29 billion, with a significant revenue growth of 41.48% over the same period. This growth trend is expected to continue, as another InvestingPro Tip suggests that "Analysts anticipate sales growth in the current year."
Despite the positive growth indicators, investors should be aware that APP is "Trading at a high earnings multiple," with a P/E ratio of 84.19. This high valuation could be attributed to the market's optimistic outlook on the company's future performance.
For those interested in a more comprehensive analysis, InvestingPro offers 21 additional tips for AppLovin, providing a deeper insight into the company's financial health and market position.
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