AppLovin (NASDAQ:APP) Trading Down 10.5% – Here’s Why

AppLovin Co. (NASDAQ:APP) dropped 10.5% on Thursday . The stock traded as low as $445.09 and last traded at $442.30. Approximately 3,811,066 shares were traded during trading, a decline of 24% from the average daily volume of 5,015,485 shares. The stock had previously closed at $494.17.

Analysts Set New Price Targets

APP has been the topic of several analyst reports. Jefferies Financial Group boosted their target price on AppLovin from $400.00 to $425.00 and gave the company a “buy” rating in a research report on Wednesday, January 8th. Daiwa Capital Markets raised AppLovin from a “neutral” rating to an “outperform” rating and boosted their target price for the company from $80.00 to $280.00 in a research report on Friday, November 8th. Piper Sandler upped their price objective on AppLovin from $400.00 to $575.00 and gave the company an “overweight” rating in a research report on Thursday, February 13th. Macquarie upped their price objective on AppLovin from $270.00 to $450.00 and gave the company an “outperform” rating in a research report on Friday, December 6th. Finally, The Goldman Sachs Group upped their price objective on AppLovin from $220.00 to $335.00 and gave the company a “neutral” rating in a research report on Monday, January 27th. Four 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’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $442.18.

AppLovin Stock Down 7.7 %

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 $365.59 and a 200-day moving average price of $243.25. The firm has a market cap of $139.37 billion, a P/E ratio of 91.48, a P/E/G ratio of 3.28 and a beta of 2.30.

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

Insider Buying and Selling

In related news, Director Mary Margaret Hasti Georgiadis sold 30,500 shares of the company’s stock in a transaction on Friday, November 29th. The stock was sold at an average price of $339.69, for a total transaction of $10,360,545.00. Following the completion of the sale, the director now directly owns 154,500 shares in the company, valued at $52,482,105. This represents a 16.49 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, CFO Herald Y. Chen sold 400 shares of the stock in a transaction dated Monday, December 9th. The shares were sold at an average price of $366.16, for a total value of $146,464.00. Following the completion of the sale, the chief financial officer now owns 207,649 shares of the company’s stock, valued at approximately $76,032,757.84. This trade represents a 0.19 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 196,302 shares of company stock worth $65,305,354 in the last three months. 14.69% of the stock is owned by 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 APP. Sequoia Financial Advisors LLC purchased a new stake in AppLovin in the third quarter valued at about $281,000. Signaturefd LLC raised its stake in AppLovin by 12.3% in the third quarter. Signaturefd LLC now owns 2,794 shares of the company’s stock valued at $365,000 after buying an additional 305 shares during the last quarter. Private Advisor Group LLC raised its stake in AppLovin by 58.0% in the third quarter. Private Advisor Group LLC now owns 11,291 shares of the company’s stock valued at $1,474,000 after buying an additional 4,147 shares during the last quarter. International Assets Investment Management LLC purchased a new stake in AppLovin in the third quarter valued at about $56,410,000. Finally, IFM Investors Pty Ltd raised its stake in AppLovin by 11.0% in the third quarter. IFM Investors Pty Ltd now owns 40,439 shares of the company’s stock valued at $5,279,000 after buying an additional 3,999 shares during the last quarter. 41.85% of the stock is currently owned by hedge funds and other institutional investors.

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.