AppLovin (NASDAQ:APP) Trading Down 1.8% – Should You Sell?

by · The Markets Daily

Shares of AppLovin Corporation (NASDAQ:APPGet Free Report) dropped 1.8% on Friday . The company traded as low as $708.20 and last traded at $714.23. Approximately 1,759,172 shares traded hands during trading, a decline of 74% from the average daily volume of 6,746,487 shares. The stock had previously closed at $727.50.

Analyst Ratings Changes

Several research firms have recently weighed in on APP. Royal Bank Of Canada boosted their price target on AppLovin from $700.00 to $750.00 and gave the stock an “outperform” rating in a report on Thursday, November 6th. JPMorgan Chase & Co. boosted their target price on shares of AppLovin from $425.00 to $650.00 and gave the stock a “neutral” rating in a report on Thursday, November 6th. BTIG Research reaffirmed a “buy” rating and set a $771.00 price target on shares of AppLovin in a research note on Wednesday, December 17th. Deutsche Bank Aktiengesellschaft set a $705.00 price objective on shares of AppLovin and gave the stock a “buy” rating in a research note on Wednesday, October 22nd. Finally, Phillip Securities raised AppLovin to a “moderate buy” rating in a report on Monday, September 29th. Nineteen equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $695.90.

Read Our Latest Analysis on AppLovin

AppLovin Stock Performance

The stock has a fifty day simple moving average of $627.63 and a two-hundred day simple moving average of $520.03. The company has a debt-to-equity ratio of 2.38, a quick ratio of 3.25 and a current ratio of 3.25. The stock has a market capitalization of $241.38 billion, a price-to-earnings ratio of 86.68, a P/E/G ratio of 3.90 and a beta of 2.51.

AppLovin (NASDAQ:APPGet Free Report) last announced its earnings results on Wednesday, November 5th. The company reported $2.45 EPS for the quarter, beating the consensus estimate of $2.34 by $0.11. The company had revenue of $1.41 billion for the quarter, compared to analyst estimates of $1.34 billion. AppLovin had a return on equity of 258.49% and a net margin of 51.27%.The firm’s revenue for the quarter was up 68.2% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.29 EPS. Analysts forecast that AppLovin Corporation will post 6.87 earnings per share for the current fiscal year.

Insider Activity at AppLovin

In other news, Director Eduardo Vivas sold 150,000 shares of the firm’s stock in a transaction dated Monday, November 10th. The stock was sold at an average price of $650.91, for a total value of $97,636,500.00. Following the completion of the sale, the director directly owned 7,133,292 shares in the company, valued at $4,643,131,095.72. This trade represents a 2.06% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CEO Arash Adam Foroughi sold 30,888 shares of the company’s stock in a transaction that occurred on Friday, November 21st. The stock was sold at an average price of $520.29, for a total value of $16,070,717.52. Following the transaction, the chief executive officer directly owned 2,553,161 shares in the company, valued at approximately $1,328,384,136.69. This trade represents a 1.20% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 340,336 shares of company stock worth $200,062,623 in the last quarter. Company insiders own 13.66% of the company’s stock.

Institutional Trading of AppLovin

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Revolve Wealth Partners LLC purchased a new position in shares of AppLovin during the fourth quarter valued at approximately $294,000. Bison Wealth LLC bought a new stake in shares of AppLovin in the 4th quarter worth $239,000. Synovus Financial Corp purchased a new stake in shares of AppLovin in the first quarter valued at about $924,000. Caisse DE Depot ET Placement DU Quebec boosted its holdings in AppLovin by 559.8% during the first quarter. Caisse DE Depot ET Placement DU Quebec now owns 31,042 shares of the company’s stock worth $8,225,000 after purchasing an additional 26,337 shares during the last quarter. Finally, Rafferty Asset Management LLC grew its position in AppLovin by 7.3% in the 1st quarter. Rafferty Asset Management LLC now owns 40,437 shares of the company’s stock worth $10,715,000 after purchasing an additional 2,748 shares in the last quarter. 41.85% of the stock is owned by institutional investors.

AppLovin Company Profile

(Get Free Report)

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.

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