AppLovin (NASDAQ:APP) Trading Down 5.6% – What’s Next?

AppLovin Co. (NASDAQ:APP)’s share price traded down 5.6% on Monday . The company traded as low as $244.00 and last traded at $257.03. 4,515,835 shares traded hands during mid-day trading, a decline of 18% from the average session volume of 5,477,904 shares. The stock had previously closed at $272.38.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on APP shares. Oppenheimer reiterated an “outperform” rating on shares of AppLovin in a report on Thursday, March 27th. Piper Sandler upped their target price on AppLovin from $400.00 to $575.00 and gave the stock an “overweight” rating in a report on Thursday, February 13th. UBS Group increased their target price on AppLovin from $440.00 to $630.00 and gave the company a “buy” rating in a research report on Thursday, February 13th. Arete Research set a $200.00 price target on AppLovin in a report on Wednesday, March 5th. Finally, Benchmark raised their price objective on shares of AppLovin from $375.00 to $525.00 and gave the company a “buy” rating in a report on Thursday, February 13th. One equities research analyst has rated the stock with a sell rating, four have issued a hold rating, fifteen have assigned a buy rating and one has given a strong buy rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $435.47.

AppLovin Trading Up 6.7 %

The firm’s 50-day moving average price is $349.20 and its 200 day moving average price is $286.70. The company has a market cap of $96.11 billion, a price-to-earnings ratio of 62.27, a P/E/G ratio of 3.02 and a beta of 2.33. The company has a current ratio of 2.41, a quick ratio of 2.41 and a debt-to-equity ratio of 3.70.

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 net margin of 33.54% and a return on equity of 188.55%. As a group, equities analysts expect that AppLovin Co. will post 6.87 EPS for the current year.

Insider Activity at AppLovin

In other AppLovin news, CEO Arash Adam Foroughi sold 44,400 shares of the business’s stock in a transaction on Monday, February 24th. The shares were 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 owns 2,869,492 shares in the company, valued at approximately $1,179,045,567.88. The trade was a 1.52 % decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Herald Y. Chen sold 200,000 shares of the firm’s stock in a transaction on Friday, February 28th. The shares were 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 directly owns 621,209 shares in the company, valued at $201,675,501.85. This trade represents a 24.35 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 306,900 shares of company stock valued at $106,401,841 in the last three months. Corporate insiders own 14.69% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. FMR LLC raised its position in AppLovin by 75.5% in the 4th quarter. FMR LLC now owns 13,851,122 shares of the company’s stock valued at $4,485,409,000 after buying an additional 5,957,885 shares during the last quarter. SVB Wealth LLC bought a new stake in shares of AppLovin in the 4th quarter worth $1,781,922,000. Baillie Gifford & Co. raised its holdings in shares of AppLovin by 5,421.4% in the fourth quarter. Baillie Gifford & Co. now owns 4,084,496 shares of the company’s stock valued at $1,322,682,000 after purchasing an additional 4,010,520 shares during the last quarter. Norges Bank bought a new position in shares of AppLovin during the fourth quarter valued at about $828,138,000. Finally, Arrowstreet Capital Limited Partnership grew its position in AppLovin by 457.2% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 2,893,148 shares of the company’s stock worth $936,888,000 after purchasing an additional 2,373,885 shares in the last quarter. 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.