AppLovin (NASDAQ:APP) Shares Down 3.5% – What’s Next?

AppLovin Co. (NASDAQ:APP)’s stock price traded down 3.5% on Friday . The stock traded as low as $427.80 and last traded at $434.23. 2,384,028 shares changed hands during mid-day trading, a decline of 54% from the average session volume of 5,159,058 shares. The stock had previously closed at $450.01.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on APP. Macquarie lifted their price target on shares of AppLovin from $270.00 to $450.00 and gave the stock an “outperform” rating in a research note on Friday, December 6th. Daiwa Capital Markets raised shares of AppLovin from a “neutral” rating to an “outperform” rating and lifted their price objective for the stock from $80.00 to $280.00 in a research report on Friday, November 8th. Bank of America boosted their target price on shares of AppLovin from $375.00 to $580.00 and gave the stock a “buy” rating in a research note on Thursday, February 13th. Piper Sandler raised their price target on AppLovin from $400.00 to $575.00 and gave the company an “overweight” rating in a research note on Thursday, February 13th. Finally, The Goldman Sachs Group upped their price objective on AppLovin from $220.00 to $335.00 and gave the stock a “neutral” rating in a research report on Monday, January 27th. Four investment 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 stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $442.18.

AppLovin Stock Performance

The company has a market cap of $139.37 billion, a PE ratio of 91.48, a PEG ratio of 3.28 and a beta of 2.30. The stock has a 50 day simple moving average of $365.59 and a two-hundred day simple moving average of $244.47. The company has a debt-to-equity ratio of 3.70, a current ratio of 2.41 and a quick ratio of 2.41.

AppLovin (NASDAQ:APP) last released its quarterly earnings results on Wednesday, February 12th. The company reported $1.73 EPS for the quarter, beating 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%. Equities analysts predict that AppLovin Co. will post 6.87 EPS for the current year.

Insider Transactions at AppLovin

In other AppLovin news, CFO Herald Y. Chen sold 400 shares of the business’s stock in a transaction on Monday, December 9th. The shares were sold at an average price of $366.16, for a total value of $146,464.00. Following the transaction, the chief financial officer now directly owns 207,649 shares of the company’s stock, valued at approximately $76,032,757.84. The trade was a 0.19 % decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Eduardo Vivas sold 30,330 shares of the firm’s stock in a transaction on Tuesday, November 26th. The stock was sold at an average price of $330.67, for a total transaction of $10,029,221.10. Following the completion of the sale, the director now owns 90,576 shares of the company’s stock, valued at $29,950,765.92. This trade represents a 25.09 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 196,302 shares of company stock worth $65,305,354. Company insiders own 14.69% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the company. Townsquare Capital LLC lifted its holdings in AppLovin by 64.9% in the third quarter. Townsquare Capital LLC now owns 7,942 shares of the company’s stock valued at $1,037,000 after acquiring an additional 3,126 shares during the period. Second Half Financial Partners LLC purchased a new position in shares of AppLovin in the 3rd quarter valued at about $224,000. State Street Corp lifted its stake in shares of AppLovin by 8.6% in the third quarter. State Street Corp now owns 5,388,023 shares of the company’s stock valued at $703,406,000 after purchasing an additional 428,419 shares during the period. Eagle Asset Management Inc. boosted its holdings in AppLovin by 2,200.4% during the third quarter. Eagle Asset Management Inc. now owns 523,149 shares of the company’s stock worth $68,297,000 after buying an additional 500,407 shares in the last quarter. Finally, Zacks Investment Management grew its position in AppLovin by 328.1% during the third quarter. Zacks Investment Management now owns 106,121 shares of the company’s stock worth $13,854,000 after buying an additional 81,331 shares during the period. 41.85% of the stock is 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.