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

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

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on APP shares. Citigroup increased their price objective on AppLovin from $460.00 to $600.00 and gave the stock a “buy” rating in a report on Wednesday, February 19th. Piper Sandler increased their price objective on AppLovin from $400.00 to $575.00 and gave the stock an “overweight” rating in a report on Thursday, February 13th. The Goldman Sachs Group raised their price target on AppLovin from $220.00 to $335.00 and gave the company a “neutral” rating in a research note on Monday, January 27th. Stifel Nicolaus raised their price target on AppLovin from $250.00 to $435.00 and gave the company a “buy” rating in a research note on Thursday, December 5th. Finally, Benchmark raised their price objective on AppLovin from $375.00 to $525.00 and gave the company a “buy” rating in a research report on Thursday, February 13th. 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 given a strong buy rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $438.28.

AppLovin Price Performance

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 has a market cap of $95.73 billion, a price-to-earnings ratio of 61.92, a PEG ratio of 3.02 and a beta of 2.33. The business has a fifty day moving average price of $356.03 and a 200 day moving average price of $270.72.

AppLovin (NASDAQ:APP) last issued its earnings results on Wednesday, February 12th. The company reported $1.73 earnings per share (EPS) for the quarter, topping 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%. As a group, research analysts anticipate that AppLovin Co. will post 6.87 earnings per share for the current year.

Insiders Place Their Bets

In other AppLovin news, Director Herald Y. Chen sold 200,000 shares of the company’s stock in a transaction dated Friday, February 28th. The stock was sold at an average price of $324.65, for a total value of $64,930,000.00. Following the sale, the director now owns 621,209 shares in the company, valued at approximately $201,675,501.85. The trade was a 24.35 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CTO Vasily Shikin sold 17,500 shares of the company’s stock in a transaction dated Monday, March 10th. The shares were sold at an average price of $241.65, for a total value of $4,228,875.00. Following the sale, the chief technology officer now owns 88,389 shares in the company, valued at approximately $21,359,201.85. The trade was a 16.53 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 322,871 shares of company stock valued at $111,401,882 in the last 90 days. Corporate insiders own 14.69% of the company’s stock.

Institutional Investors Weigh In On AppLovin

Several institutional investors and hedge funds have recently made changes to their positions in APP. Atria Investments Inc bought a new stake in shares of AppLovin during the 3rd quarter valued at about $574,000. Crossmark Global Holdings Inc. bought a new stake in shares of AppLovin during the 3rd quarter valued at about $289,000. Metis Global Partners LLC bought a new stake in shares of AppLovin during the 3rd quarter valued at about $341,000. OneDigital Investment Advisors LLC bought a new stake in shares of AppLovin during the 3rd quarter valued at about $336,000. Finally, CIBC Asset Management Inc boosted its position in shares of AppLovin by 3.6% during the 3rd quarter. CIBC Asset Management Inc now owns 7,777 shares of the company’s stock valued at $1,015,000 after purchasing an additional 267 shares in the last quarter. Institutional investors 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.