AppLovin (NASDAQ:APP) Shares Down 9.3% – What’s Next?

Shares of AppLovin Co. (NASDAQ:APP) traded down 9.3% during trading on Tuesday . The company traded as low as $313.61 and last traded at $322.00. 2,836,932 shares changed hands during trading, a decline of 26% from the average session volume of 3,847,477 shares. The stock had previously closed at $354.93.

Analysts Set New Price Targets

A number of brokerages have weighed in on APP. BTIG Research lifted their price target on shares of AppLovin from $202.00 to $291.00 and gave the company a “buy” rating in a research report on Thursday, November 7th. UBS Group upgraded shares of AppLovin from a “neutral” rating to a “buy” rating and lifted their price objective for the company from $100.00 to $145.00 in a research note on Tuesday, September 17th. Bank of America upped their target price on shares of AppLovin from $252.00 to $375.00 and gave the company a “buy” rating in a research note on Monday, November 25th. Citigroup lifted their price target on shares of AppLovin from $335.00 to $460.00 and gave the stock a “buy” rating in a research note on Thursday, December 5th. Finally, Oppenheimer reissued an “outperform” rating and issued a $480.00 price objective on shares of AppLovin in a research report on Tuesday, December 10th. One research analyst has rated the stock with a sell rating, four have assigned a hold rating, thirteen have given a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $310.71.

AppLovin Trading Down 7.3 %

The company has a 50 day moving average of $305.81 and a 200 day moving average of $174.20. The firm has a market cap of $110.42 billion, a P/E ratio of 99.71, a PEG ratio of 4.17 and a beta of 2.29. 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 released its quarterly earnings results on Wednesday, November 6th. The company reported $1.25 earnings per share for the quarter, beating analysts’ consensus estimates of $0.92 by $0.33. The business had revenue of $1.20 billion for the quarter, compared to the consensus estimate of $1.13 billion. AppLovin had a net margin of 26.85% and a return on equity of 122.24%. AppLovin’s revenue for the quarter was up 38.6% on a year-over-year basis. During the same quarter last year, the firm earned $0.30 EPS. Analysts predict that AppLovin Co. will post 4.06 EPS for the current fiscal year.

Insider Activity

In other news, CEO Arash Adam Foroughi sold 1,676 shares of the company’s stock in a transaction dated Tuesday, December 10th. The stock was sold at an average price of $356.39, for a total value of $597,309.64. Following the completion of the sale, the chief executive officer now directly owns 3,058,635 shares of the company’s stock, valued at $1,090,066,927.65. This represents a 0.05 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, insider Victoria Valenzuela sold 15,971 shares of the firm’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 transaction of $5,000,040.97. Following the sale, the insider now owns 372,205 shares in the company, valued at $116,526,219.35. This trade represents a 4.11 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 888,867 shares of company stock valued at $284,773,062. Insiders own 14.69% of the company’s stock.

Hedge Funds Weigh In On AppLovin

Institutional investors and hedge funds have recently modified their holdings of the business. Capital Performance Advisors LLP acquired a new stake in shares of AppLovin in the third quarter valued at about $25,000. DT Investment Partners LLC acquired a new position in AppLovin during the third quarter worth $27,000. Meeder Asset Management Inc. bought a new stake in AppLovin during the 3rd quarter worth approximately $27,000. Raleigh Capital Management Inc. purchased a new stake in AppLovin in the 3rd quarter valued at $29,000. Finally, Quest Partners LLC bought a new stake in AppLovin in the 2nd quarter worth about $33,000. 41.85% of the stock is currently 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.