AppLovin (NASDAQ:APP) Shares Down 0.5% – Time to Sell?

AppLovin Co. (NASDAQ:APP) was down 0.5% during mid-day trading on Wednesday . The stock traded as low as $352.22 and last traded at $359.08. Approximately 710,963 shares traded hands during trading, a decline of 82% from the average daily volume of 3,999,593 shares. The stock had previously closed at $360.75.

Wall Street Analyst Weigh In

Several research analysts recently commented on the company. UBS Group lifted their price target on AppLovin from $315.00 to $440.00 and gave the stock a “buy” rating in a research report on Wednesday, January 22nd. Piper Sandler started coverage on AppLovin in a report on Wednesday, November 20th. They issued an “overweight” rating and a $400.00 target price for the company. Wedbush restated an “outperform” rating and set a $270.00 price target (up previously from $170.00) on shares of AppLovin in a report on Thursday, November 7th. Daiwa America raised shares of AppLovin from a “hold” rating to a “strong-buy” rating in a research note on Friday, November 8th. Finally, Macquarie boosted their price objective on shares of AppLovin from $270.00 to $450.00 and gave the company an “outperform” rating in a research report on Friday, December 6th. Four equities research analysts have rated the stock with a hold rating, fourteen have assigned a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $366.29.

AppLovin Stock Up 1.1 %

The firm has a market cap of $124.03 billion, a P/E ratio of 112.00, a P/E/G ratio of 2.97 and a beta of 2.29. The company has a current ratio of 2.41, a quick ratio of 2.41 and a debt-to-equity ratio of 3.70. The business has a 50-day moving average price of $340.85 and a 200-day moving average price of $205.26.

AppLovin (NASDAQ:APP) last issued its earnings results on Wednesday, November 6th. The company reported $1.25 earnings per share (EPS) for the quarter, topping the consensus estimate 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 for the quarter, compared to analysts’ expectations of $1.13 billion. During the same period in the prior year, the business earned $0.30 EPS. The firm’s quarterly revenue was up 38.6% on a year-over-year basis. On average, equities analysts forecast that AppLovin Co. will post 4.09 EPS for the current fiscal year.

Insider Activity at AppLovin

In other news, CMO Katie Kihorany Jansen sold 59,876 shares of the company’s stock in a transaction on Tuesday, November 12th. The stock was sold at an average price of $286.14, for a total transaction of $17,132,918.64. Following the transaction, the chief marketing officer now directly owns 1,017,388 shares of the company’s stock, valued at approximately $291,115,402.32. This represents a 5.56 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Arash Adam Foroughi sold 1,676 shares of the firm’s stock in a transaction on Tuesday, December 10th. The stock was sold at an average price of $356.39, for a total value of $597,309.64. Following the completion of the sale, the chief executive officer now directly owns 3,058,635 shares of the company’s stock, valued at $1,090,066,927.65. The trade was a 0.05 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 888,867 shares of company stock valued at $284,773,062 over the last ninety days. 14.69% of the stock is owned by company insiders.

Institutional Investors Weigh In On AppLovin

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Capital Performance Advisors LLP acquired a new position in shares of AppLovin during the third quarter valued at about $25,000. GHP Investment Advisors Inc. purchased a new stake in AppLovin during the 4th quarter worth approximately $25,000. DT Investment Partners LLC acquired a new position in AppLovin during the 3rd quarter valued at approximately $27,000. Meeder Asset Management Inc. purchased a new position in shares of AppLovin in the third quarter worth $27,000. Finally, Raleigh Capital Management Inc. acquired a new stake in shares of AppLovin during the third quarter worth $29,000. 41.85% of the stock is currently owned by hedge funds and other institutional investors.

About AppLovin

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.