AppLovin Corporation (NASDAQ:APP) Director Herald Y. Chen Sells 200,000 Shares

Key Points

• Herald Y. Chen, a director at AppLovin Corporation, sold 200,000 shares of the company's stock for approximately $92.94 million, reducing his ownership by 34.37%.
• Despite reporting a 77.1% year-over-year increase in revenue, AppLovin's earnings missed market expectations, leading to a 2.9% decline in stock price.
• Equity analysts have a consensus rating of "Moderate Buy" for AppLovin, with target prices ranging from $480 to $620, indicating strong investor interest.

AppLovin Corporation (NASDAQ:APP - Get Free Report) Director Herald Y. Chen sold 200,000 shares of the company's stock in a transaction that occurred on Tuesday, August 12th. The shares were sold at an average price of $464.69, for a total value of $92,938,000.00. Following the sale, the director owned 381,929 shares in the company, valued at approximately $177,478,587.01. This trade represents a 34.37% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link.

AppLovin Stock Down 2.9%

NASDAQ APP traded down $13.06 during midday trading on Thursday, hitting $433.34. 4,999,386 shares of the company traded hands, compared to its average volume of 6,094,792. The company has a debt-to-equity ratio of 3.01, a current ratio of 2.74 and a quick ratio of 2.74. The company has a market cap of $146.64 billion, a PE ratio of 64.60, a price-to-earnings-growth ratio of 2.50 and a beta of 2.43. The company's 50-day simple moving average is $370.02 and its 200-day simple moving average is $342.07. AppLovin Corporation has a 52 week low of $82.51 and a 52 week high of $525.15.

AppLovin (NASDAQ:APP - Get Free Report) last announced its earnings results on Wednesday, August 6th. The company reported $2.26 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.05 by $0.21. The business had revenue of $1.26 billion for the quarter, compared to analysts' expectations of $1.37 billion. AppLovin had a return on equity of 252.67% and a net margin of 45.72%. The business's revenue for the quarter was up 77.1% on a year-over-year basis. During the same quarter last year, the firm earned $0.89 EPS. As a group, equities research analysts forecast that AppLovin Corporation will post 6.87 earnings per share for the current year.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on the company. Jefferies Financial Group upped their price objective on AppLovin from $460.00 to $530.00 and gave the company a "buy" rating in a research report on Thursday, May 8th. Wedbush reiterated an "outperform" rating and issued a $620.00 price target on shares of AppLovin in a report on Thursday, August 7th. BTIG Research increased their price target on AppLovin from $480.00 to $483.00 and gave the stock a "buy" rating in a report on Wednesday, July 23rd. Morgan Stanley increased their price target on AppLovin from $460.00 to $480.00 and gave the stock an "overweight" rating in a report on Thursday, August 7th. Finally, Piper Sandler increased their price target on AppLovin from $470.00 to $500.00 and gave the stock an "overweight" rating in a report on Thursday, August 7th. One investment analyst has rated the stock with a sell rating, four have issued a hold rating, eighteen have given a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat, AppLovin has a consensus rating of "Moderate Buy" and an average price target of $472.33.

Institutional Trading of AppLovin

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Revolve Wealth Partners LLC acquired a new stake in shares of AppLovin in the 4th quarter worth $294,000. Rockefeller Capital Management L.P. acquired a new stake in shares of AppLovin in the 4th quarter worth $3,996,000. SageView Advisory Group LLC purchased a new position in AppLovin in the 4th quarter worth $234,000. Jump Financial LLC purchased a new position in AppLovin in the 4th quarter worth $1,242,000. Finally, GABELLI & Co INVESTMENT ADVISERS INC. purchased a new position in AppLovin in the 4th quarter worth $389,000. 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.

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