AppLovin (NASDAQ:APP) Trading Down 5% – What’s Next?

AppLovin Co. (NASDAQ:APP)’s share price was down 5% during trading on Tuesday . The company traded as low as $320.47 and last traded at $326.81. Approximately 1,364,616 shares traded hands during mid-day trading, a decline of 70% from the average daily volume of 4,586,882 shares. The stock had previously closed at $343.96.

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on APP. BTIG Research raised their target price on AppLovin from $202.00 to $291.00 and gave the stock a “buy” rating in a research report on Thursday, November 7th. Daiwa America raised AppLovin from a “hold” rating to a “strong-buy” rating in a research report on Friday, November 8th. Citigroup boosted their price objective on AppLovin from $335.00 to $460.00 and gave the stock a “buy” rating in a report on Thursday, December 5th. Needham & Company LLC reissued a “hold” rating on shares of AppLovin in a research report on Thursday, November 7th. Finally, Macquarie increased their target price on AppLovin from $270.00 to $450.00 and gave the company an “outperform” rating in a research report on Friday, December 6th. One equities research analyst has rated the stock with a sell rating, four have issued a hold rating, fourteen have issued a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $296.40.

AppLovin Stock Down 2.7 %

The business has a fifty day moving average price of $250.08 and a two-hundred day moving average price of $147.07. The firm has a market cap of $112.26 billion, a PE ratio of 99.03, a P/E/G ratio of 4.17 and a beta of 2.28. The company has a debt-to-equity ratio of 3.70, a current ratio of 2.41 and a quick ratio of 2.41.

AppLovin (NASDAQ:APP) last posted its quarterly earnings data on Wednesday, November 6th. The company reported $1.25 EPS for the quarter, topping analysts’ consensus estimates of $0.92 by $0.33. AppLovin had a net margin of 26.85% and a return on equity of 122.24%. The company had revenue of $1.20 billion during the quarter, compared to the consensus estimate of $1.13 billion. During the same period in the prior year, the business posted $0.30 EPS. The company’s quarterly revenue was up 38.6% on a year-over-year basis. On average, analysts anticipate that AppLovin Co. will post 4.06 EPS for the current fiscal year.

Insider Activity at AppLovin

In other news, CTO Vasily Shikin sold 593,588 shares of the firm’s stock in a transaction on Thursday, November 21st. The stock was sold at an average price of $319.37, for a total transaction of $189,574,199.56. Following the completion of the sale, the chief technology officer now directly owns 3,919,024 shares of the company’s stock, valued at $1,251,618,694.88. This trade represents a 13.15 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Dawson Alyssa Harvey sold 500 shares of the stock in a transaction that occurred on Friday, December 6th. The shares were sold at an average price of $406.27, for a total value of $203,135.00. Following the sale, the director now owns 6,684 shares of the company’s stock, valued at approximately $2,715,508.68. The trade was a 6.96 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 872,896 shares of company stock worth $279,773,021. 14.69% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On AppLovin

Institutional investors and hedge funds have recently modified their holdings of the stock. Capital Performance Advisors LLP bought a new stake in AppLovin in the 3rd quarter valued at about $25,000. Meeder Asset Management Inc. bought a new position in AppLovin during the 3rd quarter valued at approximately $27,000. DT Investment Partners LLC purchased a new stake in AppLovin during the 3rd quarter valued at $27,000. Raleigh Capital Management Inc. purchased a new stake in shares of AppLovin in the third quarter worth $29,000. Finally, HM Payson & Co. boosted its stake in AppLovin by 50.0% during the third quarter. HM Payson & Co. now owns 300 shares of the company’s stock valued at $39,000 after buying an additional 100 shares during the last quarter. 41.85% of the stock is currently owned by institutional investors and hedge funds.

AppLovin Company Profile

AppLovin Corporation engages in building a software-based platform for advertisers to enhance the marketing and monetization of their content in the United States and internationally. It operates through two segments, Software Platform and Apps. The company's software solutions include AppDiscovery, a marketing software solution, which matches advertiser demand with publisher supply through auctions; MAX, an in-app bidding software that optimizes the value of a publisher's advertising inventory by running a real-time competitive auction; Adjust, a measurement and analytics marketing platform that provides marketers with the visibility, insights, and tools needed to grow their apps from early stage to maturity; and Wurl, a connected TV platform, which distributes streaming video for content companies and provides advertising and publishing solutions through its AdPool, ContentDiscovery, and Global FAST Pass products.