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

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

Analysts Set New Price Targets

A number of research analysts have weighed in on APP shares. Arete Research set a $200.00 target price on shares of AppLovin in a research report on Wednesday, March 5th. Benchmark increased their target price on AppLovin from $375.00 to $525.00 and gave the company a “buy” rating in a research note on Thursday, February 13th. Stifel Nicolaus boosted their target price on shares of AppLovin from $250.00 to $435.00 and gave the stock a “buy” rating in a research report on Thursday, December 5th. Jefferies Financial Group upped their price target on AppLovin from $400.00 to $425.00 and gave the company a “buy” rating in a report on Wednesday, January 8th. Finally, Bank of America boosted their price objective on AppLovin from $375.00 to $580.00 and gave the company a “buy” rating in a research report on Thursday, February 13th. One research analyst has rated the stock with a sell rating, four have assigned a hold rating, fifteen have assigned a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat, AppLovin presently has a consensus rating of “Moderate Buy” and an average price target of $435.47.

AppLovin Stock Performance

The company has a market cap of $90.83 billion, a price-to-earnings ratio of 58.90, a PEG ratio of 3.02 and a beta of 2.33. The firm’s 50-day moving average price is $351.86 and its 200 day moving average price is $284.38. The company has a debt-to-equity ratio of 3.70, a quick ratio of 2.41 and a current ratio of 2.41.

AppLovin (NASDAQ:APP) last announced its earnings results on Wednesday, February 12th. The company reported $1.73 EPS for the quarter, topping the consensus estimate of $1.12 by $0.61. AppLovin had a net margin of 33.54% and a return on equity of 188.55%. On average, sell-side analysts anticipate that AppLovin Co. will post 6.87 EPS for the current year.

Insider Buying and Selling at AppLovin

In other news, Director Herald Y. Chen sold 200,000 shares of the stock in a transaction on Friday, February 28th. The stock was sold at an average price of $324.65, for a total transaction of $64,930,000.00. Following the sale, the director now directly owns 621,209 shares of the company’s stock, valued at approximately $201,675,501.85. This represents a 24.35 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Arash Adam Foroughi sold 45,000 shares of the business’s stock in a transaction dated Friday, February 21st. The shares were sold at an average price of $422.21, for a total value of $18,999,450.00. Following the completion of the transaction, the chief executive officer now directly owns 2,914,492 shares of the company’s stock, valued at approximately $1,230,527,667.32. This trade represents a 1.52 % decrease in their position. 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 quarter. 14.69% of the stock is currently owned by insiders.

Hedge Funds Weigh In On AppLovin

Hedge funds have recently bought and sold shares of the company. Advisors Asset Management Inc. raised its position in AppLovin by 89.7% during the third quarter. Advisors Asset Management Inc. now owns 681 shares of the company’s stock valued at $89,000 after purchasing an additional 322 shares in the last quarter. Cerity Partners LLC lifted its holdings in shares of AppLovin by 36.3% in the third quarter. Cerity Partners LLC now owns 18,120 shares of the company’s stock worth $2,366,000 after acquiring an additional 4,822 shares during the last quarter. Townsquare Capital LLC grew its holdings in shares of AppLovin by 64.9% during the 3rd quarter. Townsquare Capital LLC now owns 7,942 shares of the company’s stock valued at $1,037,000 after purchasing an additional 3,126 shares during the last quarter. Freedom Investment Management Inc. acquired a new position in AppLovin during the 3rd quarter worth approximately $231,000. Finally, Zurcher Kantonalbank Zurich Cantonalbank boosted its position in AppLovin by 20.6% in the third quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 44,657 shares of the company’s stock valued at $5,830,000 after buying an additional 7,638 shares in the last quarter. 41.85% of the stock is owned by 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.