AppLovin (NASDAQ:APP) Stock Price Down 9.8% – Should You Sell?

AppLovin Co. (NASDAQ:APP) dropped 9.8% on Tuesday . The company traded as low as $285.36 and last traded at $276.93. Approximately 3,239,775 shares changed hands during trading, a decline of 38% from the average daily volume of 5,197,085 shares. The stock had previously closed at $306.85.

Analysts Set New Price Targets

APP has been the topic of a number of recent analyst reports. UBS Group lifted their price objective on shares of AppLovin from $440.00 to $630.00 and gave the company a “buy” rating in a research note on Thursday, February 13th. Stifel Nicolaus lifted their price target on AppLovin from $250.00 to $435.00 and gave the stock a “buy” rating in a research note on Thursday, December 5th. Oppenheimer reissued an “outperform” rating and issued a $560.00 price target (up previously from $480.00) on shares of AppLovin in a research note on Thursday, February 13th. Benchmark lifted 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. Finally, Wells Fargo & Company set a $538.00 target price on AppLovin and gave the company an “overweight” rating in a research note on Thursday, February 27th. One equities research analyst has rated the stock with a sell rating, four have assigned a hold rating, fourteen have issued a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $438.28.

AppLovin Trading Down 8.2 %

The firm has a market capitalization of $95.73 billion, a P/E ratio of 61.92, a PEG ratio of 3.02 and a beta of 2.33. The company has a quick ratio of 2.41, a current ratio of 2.41 and a debt-to-equity ratio of 3.70. The business has a 50-day moving average price of $356.03 and a 200-day moving average price of $270.72.

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

Insider Buying and Selling at AppLovin

In other news, insider Victoria Valenzuela sold 15,971 shares of the company’s stock in a transaction on Thursday, December 19th. The stock was sold at an average price of $313.07, for a total transaction of $5,000,040.97. Following the transaction, the insider now owns 372,205 shares of the company’s stock, valued at $116,526,219.35. This represents a 4.11 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Arash Adam Foroughi sold 44,400 shares of the company’s stock in a transaction on Monday, February 24th. The shares were sold at an average price of $410.89, for a total value of $18,243,516.00. Following the transaction, the chief executive officer now directly owns 2,869,492 shares in the company, valued at $1,179,045,567.88. This trade represents a 1.52 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 322,871 shares of company stock worth $111,401,882 over the last three months. Company insiders own 14.69% of the company’s stock.

Hedge Funds Weigh In On AppLovin

Several large investors have recently made changes to their positions in APP. 111 Capital acquired a new position in AppLovin in the fourth quarter valued at about $1,142,000. Wealth Enhancement Advisory Services LLC lifted its stake in AppLovin by 2.7% in the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 105,925 shares of the company’s stock valued at $34,302,000 after buying an additional 2,793 shares during the period. NorthCrest Asset Manangement LLC acquired a new position in AppLovin in the fourth quarter valued at about $283,000. Lansforsakringar Fondforvaltning AB publ acquired a new position in AppLovin in the fourth quarter valued at about $21,804,000. Finally, Centaurus Financial Inc. lifted its stake in AppLovin by 3.7% in the fourth quarter. Centaurus Financial Inc. now owns 27,601 shares of the company’s stock valued at $8,938,000 after buying an additional 997 shares during the period. Institutional investors and hedge funds own 41.85% of the company’s stock.

AppLovin Company Profile

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.