AppLovin (NASDAQ:APP) Stock Price Down 13.5% – Here’s Why

AppLovin Co. (NASDAQ:APP)’s share price traded down 13.5% on Thursday . The stock traded as low as $249.08 and last traded at $251.32. 3,863,489 shares were traded during mid-day trading, a decline of 30% from the average session volume of 5,535,480 shares. The stock had previously closed at $290.39.

Wall Street Analyst Weigh In

APP has been the topic of a number of recent research reports. Arete Research set a $200.00 price objective on AppLovin in a research note on Wednesday, March 5th. Bank of America increased their target price on AppLovin from $375.00 to $580.00 and gave the company a “buy” rating in a report on Thursday, February 13th. JPMorgan Chase & Co. lifted their price target on AppLovin from $325.00 to $475.00 and gave the stock a “neutral” rating in a research note on Thursday, February 13th. Benchmark increased 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. Finally, Loop Capital restated a “buy” rating and issued a $650.00 price objective on shares of AppLovin in a research report on Friday, March 28th. One research analyst has rated the stock with a sell rating, four have issued a hold rating, fifteen have given a buy rating and one has issued a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $435.47.

AppLovin Stock Down 16.3 %

The firm has a market capitalization of $74.58 billion, a P/E ratio of 48.32, a P/E/G ratio of 3.02 and a beta of 2.39. The company has a fifty day simple moving average of $342.89 and a 200 day simple moving average of $287.27. The company has a quick ratio of 2.41, a current ratio of 2.41 and a debt-to-equity ratio of 3.70.

AppLovin (NASDAQ:APP) last released its quarterly earnings data on Wednesday, February 12th. The company reported $1.73 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.12 by $0.61. AppLovin had a return on equity of 188.55% and a net margin of 33.54%. On average, equities analysts expect that AppLovin Co. will post 6.87 EPS for the current fiscal year.

Insider Buying and Selling

In other AppLovin news, CEO Arash Adam Foroughi sold 44,400 shares of the business’s stock in a transaction dated Monday, February 24th. The stock was sold at an average price of $410.89, for a total transaction of $18,243,516.00. Following the completion of the sale, the chief executive officer now directly owns 2,869,492 shares in the company, valued at $1,179,045,567.88. The trade was a 1.52 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Herald Y. Chen sold 200,000 shares of the stock in a transaction that occurred on Friday, February 28th. The stock was sold at an average price of $324.65, for a total transaction of $64,930,000.00. Following the completion of the transaction, the director now owns 621,209 shares in the company, valued at $201,675,501.85. This trade represents a 24.35 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 306,900 shares of company stock worth $106,401,841. 14.69% of the stock is owned by insiders.

Institutional Investors Weigh In On AppLovin

A number of hedge funds have recently modified their holdings of the business. Fuller & Thaler Asset Management Inc. bought a new stake in AppLovin during the 4th quarter worth approximately $25,000. GHP Investment Advisors Inc. bought a new stake in shares of AppLovin during the 4th quarter valued at $25,000. Riverview Trust Co lifted its stake in shares of AppLovin by 1,640.0% during the 4th quarter. Riverview Trust Co now owns 87 shares of the company’s stock valued at $28,000 after buying an additional 82 shares in the last quarter. Tucker Asset Management LLC bought a new position in AppLovin in the 4th quarter worth $28,000. Finally, Hemington Wealth Management boosted its holdings in AppLovin by 78.4% in the 4th quarter. Hemington Wealth Management now owns 91 shares of the company’s stock worth $29,000 after buying an additional 40 shares during the period. 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.