AppLovin (NASDAQ:APP) Stock Price Down 4.9% – Should You Sell?

Shares of AppLovin Corporation (NASDAQ:APP) traded down 4.9% during mid-day trading on Tuesday . The company traded as low as $319.50 and last traded at $322.4220. 1,616,651 shares traded hands during mid-day trading, a decline of 72% from the average daily volume of 5,710,702 shares. The stock had previously closed at $339.00.

Key Stories Impacting AppLovin

Here are the key news stories impacting AppLovin this week:

• Positive Sentiment: AppLovin expects revenue growth to reaccelerate sequentially in the third quarter while maintaining an approximately 83% margin, even as it invests in additional AI computing capacity. The guidance supports the view that recent weakness may be temporary. AppLovin Q3 Guidance Signals Reacceleration After a Mixed Q2 Print
• Positive Sentiment: Phillip Securities upgraded APP from “moderate buy” to “strong buy.” BTIG also maintained a buy rating and set a $408 price target, implying substantial upside despite lowering its previous target of $574. BTIG AppLovin Price Target
• Positive Sentiment: Several investment commentaries characterize AppLovin as an attractive value opportunity after its steep decline, citing rapid revenue growth, high margins and strong earnings potential relative to valuation. AppLovin Won’t Be This Cheap for Long

Analyst Ratings Changes

APP has been the subject of several research reports. Wells Fargo & Company reissued an “equal weight” rating and issued a $357.00 target price (down from $575.00) on shares of AppLovin in a research report on Thursday, August 6th. The Goldman Sachs Group reduced their price target on AppLovin from $585.00 to $465.00 and set a “neutral” rating on the stock in a research note on Thursday, August 6th. Phillip Securities upgraded AppLovin from a “moderate buy” rating to a “strong-buy” rating in a report on Tuesday. KeyCorp set a $775.00 price objective on AppLovin in a research report on Wednesday, June 10th. Finally, UBS Group reduced their target price on shares of AppLovin from $798.00 to $790.00 and set a “buy” rating on the stock in a research report on Thursday, August 6th. Three equities research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eight have assigned a Hold rating to the company. Based on data from MarketBeat, AppLovin presently has a consensus rating of “Moderate Buy” and a consensus price target of $565.91.

AppLovin Stock Down 4.7%

The firm has a market capitalization of $102.05 billion, a P/E ratio of 23.35, a P/E/G ratio of 0.59 and a beta of 2.54. The company has a fifty day simple moving average of $457.60 and a 200 day simple moving average of $458.54. The company has a quick ratio of 4.30, a current ratio of 4.30 and a debt-to-equity ratio of 1.11.

AppLovin (NASDAQ:APP) last announced its quarterly earnings results on Tuesday, August 4th. The company reported $3.76 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $3.76. The company had revenue of $1.92 billion for the quarter, compared to analysts’ expectations of $1.94 billion. AppLovin had a net margin of 64.58% and a return on equity of 193.10%. AppLovin’s revenue was up 52.8% compared to the same quarter last year. During the same quarter in the previous year, the business posted $2.39 EPS. On average, equities analysts expect that AppLovin Corporation will post 15.57 EPS for the current fiscal year.

Insider Transactions at AppLovin

In related news, CEO Arash Adam Foroughi sold 33,042 shares of the firm’s stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $486.95, for a total transaction of $16,089,801.90. Following the completion of the sale, the chief executive officer owned 2,369,351 shares of the company’s stock, valued at $1,153,755,469.45. This trade represents a 1.38% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Eduardo Vivas sold 163,910 shares of the business’s stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $504.06, for a total transaction of $82,620,474.60. Following the completion of the transaction, the director owned 6,785,087 shares of the company’s stock, valued at approximately $3,420,090,953.22. The trade was a 2.36% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 393,000 shares of company stock valued at $197,297,363. 12.81% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Cassaday & Co Wealth Management LLC bought a new position in AppLovin during the 1st quarter valued at about $25,000. Washington Trust Advisors Inc. grew its stake in shares of AppLovin by 160.0% in the fourth quarter. Washington Trust Advisors Inc. now owns 39 shares of the company’s stock worth $27,000 after acquiring an additional 24 shares during the period. Mcguire Capital Advisors Inc. bought a new position in AppLovin during the fourth quarter valued at approximately $27,000. Pioneer Family Office LLC bought a new position in AppLovin during the second quarter valued at approximately $31,000. Finally, Laurel Wealth Advisors LLC purchased a new stake in AppLovin in the fourth quarter worth approximately $32,000. 41.85% of the stock is owned by institutional investors.

About AppLovin

AppLovin Corporation is a Palo Alto–based mobile technology company that provides software and services to help app developers grow and monetize their businesses. The company operates a data-driven advertising and marketing platform that connects app publishers and advertisers, delivering tools for user acquisition, monetization, analytics and creative optimization. AppLovin’s technology is integrated into a broad set of mobile applications through software development kits (SDKs) and ad products designed to maximize revenue and engagement for developers.

Key components of AppLovin’s offering include an ad mediation and exchange platform that enables publishers to manage and monetize inventory across multiple demand sources, and a user-acquisition platform that helps advertisers target and scale campaigns.