Corporate executives have the most up-to-date information on their companies' operations and performance. If these insiders are buying company stock, it’s often worth taking a closer look.
In this report, we are going to highlight some interesting insider buying at AppLovin Corp (APP:US). AppLovin is a mobile technology company that enables developers of all sizes to market and monetize their apps through its mobile advertising, marketing, and analytics platforms MAX, AppDiscovery, and SparkLabs. The company listed on the NASDAQ Global Select Market in April via an IPO and currently has a market capitalization of $24.8 billion.
AppLovin: Insider Buying
Our insider transaction data shows that this month, three insiders at AppLovin have made large purchases. On 17 May, Founder and CEO Adam Foroughi, CFO Herald Chen, and director Eduardo Vivas all bought APP stock, spending around $5.5 million on shares in total. Then, on 18 May, the CEO and CFO purchased more stock, this time spending about $3.25 million on shares.
Bullish Buying Activity
This insider activity is worth highlighting for a couple of reasons. Firstly, these insiders have spent a substantial sum of money on AppLovin stock. This suggests that they are very confident the stock is set to move higher. It’s worth pointing out that it is quite unusual to see insiders buying stock so soon after an IPO. Usually, insiders are keen to offload stock after an IPO (after the lockup period). The fact that these insiders are buying heavily is very bullish.
Secondly, two of these insiders, Foroughi and Chen, are top-level insiders. They are likely to have a very good understanding of the company, and its prospects.
Strong Growth in Q1
AppLovin’s recent first-quarter results were very strong. For the period, total revenue was $603.9 million, an increase of 132% (with organic revenue growth of 89%). Meanwhile, adjusted EBITDA totaled $131 million, an increase of 110%. These were both record figures.
Looking ahead, the company said that for the full year, it expects total revenue of $2.65 to $2.70 billion, representing growth of approximately 83%, and total adjusted EBITDA of $680 to $700 million, representing growth of approximately 100%.
“We are excited to deliver record revenue in our first earnings report as a newly public company. Our record growth 1Q21 results are driven by the powerful combination of our integrated business model, incorporating software, content and data,” said CEO Adam Foroughi.
”As we continue to grow our content portfolio, gain access to data, and improve the efficacy of our marketing software, we see a path to outsized growth for years to come,” he added.
In light of this strong performance and the confident tone from management, we see the insider buying here as a bullish signal.