AppLovin (NASDAQ:APP) Shares Down 6.2% – Here’s Why

AppLovin Co. (NASDAQ:APP) dropped 6.2% during trading on Monday . The company traded as low as $263.26 and last traded at $272.11. Approximately 3,502,619 shares changed hands during trading, a decline of 18% from the average daily volume of 4,257,461 shares. The stock had previously closed at $290.01.

Analysts Set New Price Targets

APP has been the subject of several research analyst reports. Wells Fargo & Company began coverage on AppLovin in a research report on Monday, October 28th. They issued an “overweight” rating and a $200.00 price objective for the company. Citigroup lifted their price target on AppLovin from $155.00 to $185.00 and gave the company a “buy” rating in a research note on Tuesday, October 22nd. JPMorgan Chase & Co. upped their price objective on AppLovin from $160.00 to $200.00 and gave the stock a “neutral” rating in a research report on Thursday, November 7th. Stifel Nicolaus lifted their target price on AppLovin from $185.00 to $250.00 and gave the company a “buy” rating in a research report on Thursday, November 7th. Finally, BTIG Research boosted their target price on AppLovin from $202.00 to $291.00 and gave the company a “buy” rating in a research note on Thursday, November 7th. One research analyst has rated the stock with a sell rating, four have given a hold rating, thirteen have issued a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $194.31.

AppLovin Price Performance

The company’s 50 day moving average is $147.16 and its 200-day moving average is $104.56. The firm has a market capitalization of $94.91 billion, a price-to-earnings ratio of 85.84, a P/E/G ratio of 3.56 and a beta of 1.86. The company has a current ratio of 2.41, a quick ratio of 2.41 and a debt-to-equity ratio of 3.70.

AppLovin (NASDAQ:APP) last released its quarterly earnings data on Wednesday, November 6th. The company reported $1.25 EPS for the quarter, beating the consensus estimate of $0.92 by $0.33. The firm 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%. The company’s quarterly revenue was up 38.6% on a year-over-year basis. During the same period in the previous year, the company earned $0.30 earnings per share. Equities research analysts anticipate that AppLovin Co. will post 4.06 earnings per share for the current year.

Insider Buying and Selling

In related news, insider Victoria Valenzuela sold 14,166 shares of the company’s stock in a transaction dated Thursday, August 22nd. The shares were sold at an average price of $89.98, for a total value of $1,274,656.68. Following the transaction, the insider now directly owns 352,616 shares in the company, valued at approximately $31,728,387.68. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. In related news, insider Victoria Valenzuela sold 14,166 shares of the stock in a transaction that occurred on Thursday, August 22nd. The stock was sold at an average price of $89.98, for a total transaction of $1,274,656.68. Following the sale, the insider now owns 352,616 shares of the company’s stock, valued at $31,728,387.68. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CTO Vasily Shikin sold 154,500 shares of AppLovin stock in a transaction on Friday, September 6th. The shares were sold at an average price of $84.14, for a total value of $12,999,630.00. Following the completion of the transaction, the chief technology officer now directly owns 4,530,455 shares of the company’s stock, valued at $381,192,483.70. This represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 404,866 shares of company stock valued at $34,670,777. Insiders own 14.69% of the company’s stock.

Hedge Funds Weigh In On AppLovin

Several hedge funds and other institutional investors have recently modified their holdings of APP. Brooklyn Investment Group bought a new position in AppLovin in the third quarter valued at about $324,000. FMR LLC increased its position in AppLovin by 622.8% during the 3rd quarter. FMR LLC now owns 7,893,237 shares of the company’s stock worth $1,030,462,000 after purchasing an additional 6,801,138 shares in the last quarter. Private Trust Co. NA lifted its stake in AppLovin by 86.7% in the 3rd quarter. Private Trust Co. NA now owns 788 shares of the company’s stock valued at $103,000 after purchasing an additional 366 shares during the last quarter. Truvestments Capital LLC grew its stake in shares of AppLovin by 12.2% during the third quarter. Truvestments Capital LLC now owns 5,198 shares of the company’s stock worth $679,000 after buying an additional 567 shares during the last quarter. Finally, Loomis Sayles & Co. L P acquired a new position in shares of AppLovin during the third quarter worth $672,000. Institutional investors own 41.85% of the company’s stock.

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.