AppLovin (NASDAQ:APP) Shares Down 7.2% – What’s Next?

AppLovin Co. (NASDAQ:APP)’s stock price traded down 7.2% on Tuesday . The stock traded as low as $307.57 and last traded at $313.18. 3,113,687 shares were traded during trading, a decline of 36% from the average session volume of 4,896,114 shares. The stock had previously closed at $337.34.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on the stock. Citigroup raised their price target on shares of AppLovin from $460.00 to $600.00 and gave the company a “buy” rating in a research report on Wednesday, February 19th. Daiwa Capital Markets upgraded AppLovin from a “neutral” rating to an “outperform” rating and boosted their target price for the stock from $80.00 to $280.00 in a research note on Friday, November 8th. UBS Group upped their target price on AppLovin from $440.00 to $630.00 and gave the company a “buy” rating in a report on Thursday, February 13th. The Goldman Sachs Group lifted their price target on AppLovin from $220.00 to $335.00 and gave the stock a “neutral” rating in a report on Monday, January 27th. Finally, Benchmark upped their price objective on AppLovin from $375.00 to $525.00 and gave the company a “buy” rating in a research note on Thursday, February 13th. Four investment analysts have rated the stock with a hold rating, fourteen have given a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $452.29.

AppLovin Stock Performance

The company has a market capitalization of $109.82 billion, a P/E ratio of 72.08, a P/E/G ratio of 3.02 and a beta of 2.30. 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 company’s fifty day moving average is $367.64 and its 200 day moving average is $257.15.

AppLovin (NASDAQ:APP) last posted its quarterly earnings results on Wednesday, February 12th. The company reported $1.73 EPS 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, equities analysts anticipate that AppLovin Co. will post 6.87 earnings per share for the current year.

Insider Transactions at AppLovin

In related news, CEO Arash Adam Foroughi sold 1,676 shares of the company’s stock in a transaction that occurred on Tuesday, December 10th. The shares were sold at an average price of $356.39, for a total transaction of $597,309.64. Following the sale, the chief executive officer now owns 3,058,635 shares of the company’s stock, valued at approximately $1,090,066,927.65. This represents a 0.05 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Victoria Valenzuela sold 15,971 shares of the firm’s stock in a transaction on Thursday, December 19th. The shares were sold at an average price of $313.07, for a total transaction 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. The trade was a 4.11 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 206,947 shares of company stock valued at $75,810,416. 14.69% of the stock is currently owned by corporate insiders.

Institutional Trading of AppLovin

Large investors have recently modified their holdings of the business. Park Square Financial Group LLC purchased a new position in AppLovin in the 4th quarter worth approximately $112,000. Menard Financial Group LLC grew its position in AppLovin by 29.2% in the fourth quarter. Menard Financial Group LLC now owns 2,482 shares of the company’s stock worth $804,000 after acquiring an additional 561 shares in the last quarter. Universal Beteiligungs und Servicegesellschaft mbH bought a new position in AppLovin in the fourth quarter valued at $69,003,000. Brucke Financial Inc. purchased a new stake in AppLovin during the fourth quarter valued at about $263,000. Finally, Jefferies Financial Group Inc. purchased a new position in shares of AppLovin in the 4th quarter worth about $470,000. Institutional investors own 41.85% of the company’s stock.

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.