AppLovin (NASDAQ:APP) Shares Down 3.7% – Here’s Why

AppLovin Co. (NASDAQ:APP)’s share price dropped 3.7% on Wednesday . The stock traded as low as $317.50 and last traded at $317.50. Approximately 313,729 shares traded hands during mid-day trading, a decline of 93% from the average daily volume of 4,449,475 shares. The stock had previously closed at $329.77.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on APP. Daiwa Capital Markets raised AppLovin from a “neutral” rating to an “outperform” rating and raised their price target for the stock from $80.00 to $280.00 in a report on Friday, November 8th. Stifel Nicolaus upped their target price on AppLovin from $185.00 to $250.00 and gave the stock a “buy” rating in a research report on Thursday, November 7th. Needham & Company LLC reissued a “hold” rating on shares of AppLovin in a research note on Thursday, November 7th. Wedbush reaffirmed an “outperform” rating and set a $270.00 target price (up previously from $170.00) on shares of AppLovin in a research note on Thursday, November 7th. Finally, JPMorgan Chase & Co. boosted their price target on shares of AppLovin from $160.00 to $200.00 and gave the stock a “neutral” rating in a research report on Thursday, November 7th. One investment analyst has rated the stock with a sell rating, four have issued a hold rating, fourteen have assigned a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $265.57.

AppLovin Trading Down 2.6 %

The company has a debt-to-equity ratio of 3.70, a quick ratio of 2.41 and a current ratio of 2.41. The company’s 50 day moving average is $185.37 and its 200 day moving average is $119.37. The stock has a market capitalization of $107.79 billion, a price-to-earnings ratio of 99.93, a PEG ratio of 3.94 and a beta of 1.86.

AppLovin (NASDAQ:APP) last announced its quarterly earnings data on Wednesday, November 6th. The company reported $1.25 EPS for the quarter, topping analysts’ consensus estimates of $0.92 by $0.33. The company had revenue of $1.20 billion during the quarter, compared to the consensus estimate of $1.13 billion. AppLovin had a return on equity of 122.24% and a net margin of 26.85%. The company’s quarterly revenue was up 38.6% on a year-over-year basis. During the same quarter last year, the company earned $0.30 EPS. On average, research analysts forecast that AppLovin Co. will post 4.05 EPS for the current fiscal year.

Insider Buying and Selling at AppLovin

In related news, CTO Vasily Shikin sold 593,588 shares of the stock in a transaction dated Thursday, November 21st. The shares were sold at an average price of $319.37, for a total transaction of $189,574,199.56. Following the completion of the sale, the chief technology officer now owns 3,919,024 shares in the company, valued at $1,251,618,694.88. This trade represents a 13.15 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Dawson Alyssa Harvey sold 1,500 shares of the company’s stock in a transaction dated Tuesday, September 10th. The stock was sold at an average price of $87.90, for a total transaction of $131,850.00. Following the sale, the director now directly owns 10,247 shares in the company, valued at $900,711.30. This represents a 12.77 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 854,065 shares of company stock valued at $233,072,408. 14.69% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On AppLovin

A number of institutional investors have recently made changes to their positions in APP. Capital Performance Advisors LLP bought a new position in AppLovin in the third quarter valued at $25,000. DT Investment Partners LLC bought a new position in shares of AppLovin in the 3rd quarter valued at about $27,000. Meeder Asset Management Inc. acquired a new stake in shares of AppLovin in the third quarter valued at about $27,000. Raleigh Capital Management Inc. bought a new stake in AppLovin during the third quarter worth about $29,000. Finally, Quest Partners LLC acquired a new position in shares of AppLovin during the 2nd quarter worth approximately $33,000. 41.85% of the stock is owned by institutional investors and hedge funds.

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.