AppLovin (NASDAQ:APP) Trading Down 3.9% – What’s Next?

AppLovin Co. (NASDAQ:APP) shares were down 3.9% during mid-day trading on Monday . The stock traded as low as $397.14 and last traded at $399.23. Approximately 3,008,434 shares traded hands during trading, a decline of 43% from the average daily volume of 5,246,614 shares. The stock had previously closed at $415.31.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on the company. Needham & Company LLC restated a “hold” rating on shares of AppLovin in a research report on Thursday, February 13th. Oppenheimer restated an “outperform” rating and issued a $560.00 target price (up from $480.00) on shares of AppLovin in a research report on Thursday, February 13th. BTIG Research increased their price target on shares of AppLovin from $202.00 to $291.00 and gave the stock a “buy” rating in a research report on Thursday, November 7th. UBS Group boosted their price objective on shares of AppLovin from $440.00 to $630.00 and gave the company a “buy” rating in a research report on Thursday, February 13th. Finally, The Goldman Sachs Group upped their target price on AppLovin from $220.00 to $335.00 and gave the stock a “neutral” rating in a research note on Monday, January 27th. Four research analysts have rated the stock with a hold rating, fourteen have issued a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat.com, AppLovin currently has a consensus rating of “Moderate Buy” and a consensus price target of $442.18.

AppLovin Stock Performance

The company’s 50-day simple moving average is $365.59 and its 200-day simple moving average is $245.72. The stock has a market capitalization of $137.61 billion, a price-to-earnings ratio of 91.55, a PEG ratio of 3.28 and a beta of 2.30. 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 issued its 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, analysts expect that AppLovin Co. will post 6.87 EPS for the current year.

Insider Activity at AppLovin

In related news, insider Victoria Valenzuela sold 15,971 shares of the company’s stock in a transaction that occurred on Thursday, December 19th. The stock was sold at an average price of $313.07, for a total value of $5,000,040.97. Following the transaction, the insider now owns 372,205 shares in the company, valued at approximately $116,526,219.35. This represents a 4.11 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Herald Y. Chen sold 99,000 shares of the company’s stock in a transaction on Thursday, December 12th. The shares were sold at an average price of $329.50, for a total value of $32,620,500.00. Following the transaction, the director now directly owns 621,209 shares in the company, valued at $204,688,365.50. This represents a 13.75 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 196,302 shares of company stock valued at $65,305,354 over the last ninety days. Corporate insiders own 14.69% of the company’s stock.

Institutional Trading of AppLovin

Institutional investors and hedge funds have recently bought and sold shares of the company. FMR LLC grew its position in AppLovin by 622.8% in the third quarter. FMR LLC now owns 7,893,237 shares of the company’s stock worth $1,030,462,000 after acquiring an additional 6,801,138 shares in the last quarter. SVB Wealth LLC bought a new stake in AppLovin during the fourth quarter worth about $1,781,922,000. Baillie Gifford & Co. boosted its holdings in shares of AppLovin by 5,421.4% in the 4th quarter. Baillie Gifford & Co. now owns 4,084,496 shares of the company’s stock worth $1,322,682,000 after purchasing an additional 4,010,520 shares in the last quarter. Norges Bank bought a new position in shares of AppLovin during the 4th quarter valued at about $828,138,000. Finally, Arrowstreet Capital Limited Partnership raised its holdings in shares of AppLovin by 457.2% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 2,893,148 shares of the company’s stock valued at $936,888,000 after buying an additional 2,373,885 shares in the last quarter. 41.85% of the stock is currently owned by hedge funds and other institutional investors.

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.