AppLovin (NASDAQ:APP) Shares Down 10.5% – Here’s What Happened

AppLovin Co. (NASDAQ:APP)’s stock price traded down 10.5% on Thursday . The company traded as low as $445.09 and last traded at $442.30. 3,811,066 shares traded hands during mid-day trading, a decline of 24% from the average session volume of 5,015,485 shares. The stock had previously closed at $494.17.

Analysts Set New Price Targets

A number of analysts have recently weighed in on the stock. Daiwa America raised shares of AppLovin from a “hold” rating to a “strong-buy” rating in a research report on Friday, November 8th. BTIG Research increased their price objective on shares of AppLovin from $202.00 to $291.00 and gave the company a “buy” rating in a research report on Thursday, November 7th. Stifel Nicolaus increased their price objective on shares of AppLovin from $250.00 to $435.00 and gave the company a “buy” rating in a research report on Thursday, December 5th. Benchmark raised their price target on shares of AppLovin from $375.00 to $525.00 and gave the company a “buy” rating in a report on Thursday, February 13th. Finally, Piper Sandler raised their price target on shares of AppLovin from $400.00 to $575.00 and gave the company an “overweight” rating in a report on Thursday, February 13th. Four equities research analysts have rated the stock with a hold rating, fourteen have given a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat.com, AppLovin presently has a consensus rating of “Moderate Buy” and a consensus target price of $430.41.

AppLovin Stock Performance

The business’s fifty day moving average is $361.30 and its two-hundred day moving average is $239.37. The company has a quick ratio of 2.41, a current ratio of 2.41 and a debt-to-equity ratio of 3.70. The stock has a market capitalization of $147.52 billion, a PE ratio of 96.83, a price-to-earnings-growth ratio of 3.61 and a beta of 2.30.

AppLovin (NASDAQ:APP) last issued its quarterly earnings results on Wednesday, February 12th. The company reported $1.73 earnings per share for the quarter, topping analysts’ consensus estimates of $1.12 by $0.61. AppLovin had a return on equity of 188.55% and a net margin of 33.54%. As a group, research analysts anticipate that AppLovin Co. will post 6.87 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Herald Y. Chen sold 99,000 shares of the business’s stock in a transaction dated Thursday, December 12th. The stock was sold at an average price of $329.50, for a total value of $32,620,500.00. Following the completion of the transaction, the director now owns 621,209 shares of the company’s stock, valued at $204,688,365.50. The trade was a 13.75 % decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Victoria Valenzuela sold 15,971 shares of the business’s stock in a transaction dated Thursday, December 19th. The shares were sold at an average price of $313.07, for a total value of $5,000,040.97. Following the completion of the transaction, the insider now directly owns 372,205 shares of the company’s stock, valued at approximately $116,526,219.35. This trade represents a 4.11 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 217,403 shares of company stock valued at $72,325,024. 14.69% of the stock is owned by insiders.

Hedge Funds Weigh In On AppLovin

Several institutional investors and hedge funds have recently modified their holdings of APP. Capital Performance Advisors LLP purchased a new position in shares of AppLovin in the 3rd quarter valued at about $25,000. GHP Investment Advisors Inc. purchased a new position in shares of AppLovin in the 4th quarter valued at about $25,000. Fuller & Thaler Asset Management Inc. purchased a new stake in AppLovin during the 4th quarter worth approximately $25,000. DT Investment Partners LLC purchased a new stake in AppLovin during the 3rd quarter worth approximately $27,000. Finally, Meeder Asset Management Inc. purchased a new stake in AppLovin during the 3rd quarter worth approximately $27,000. Hedge funds and other institutional investors own 41.85% of the company’s stock.

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.