AppLovin (NASDAQ:APP) Sets New 52-Week Low - Here's Why

Key Points

• AppLovin shares hit a new 52-week low, falling to $298 during Friday trading from a prior close of $308.77; the stock remains well below its 50-day and 200-day moving averages.
• Analysts have recently trimmed some price targets, including Bank of America to $400 and Benchmark to $440, but the overall consensus remains “Moderate Buy” with a $553.83 target price.
• AppLovin’s latest results showed strong year-over-year growth, with revenue up 52.8% to $1.92 billion and EPS of $3.76, though revenue slightly missed estimates; insiders also sold about $153.8 million of shares in the last quarter.

AppLovin Corporation (NASDAQ:APP - Get Free Report)'s stock price reached a new 52-week low during mid-day trading on Friday . The stock traded as low as $298.00 and last traded at $300.86, with a volume of 930723 shares trading hands. The stock had previously closed at $308.77.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on the company. Bank of America restated a "neutral" rating and set a $400.00 price target (down from $430.00) on shares of AppLovin in a report on Tuesday, August 11th. William Blair set a $440.00 target price on shares of AppLovin in a research note on Monday. Phillip Securities raised shares of AppLovin from a "moderate buy" rating to a "strong-buy" rating in a research note on Tuesday, August 11th. Piper Sandler reiterated a "neutral" rating on shares of AppLovin in a report on Friday. Finally, Benchmark reduced their price objective on shares of AppLovin from $500.00 to $440.00 and set a "buy" rating on the stock in a research report on Monday. Three research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and eight have given a Hold rating to the company's stock. According to MarketBeat.com, AppLovin presently has a consensus rating of "Moderate Buy" and a consensus target price of $553.83.

AppLovin Stock Performance

The firm has a market capitalization of $100.96 billion, a P/E ratio of 23.19, a P/E/G ratio of 0.62 and a beta of 2.54. The firm has a 50-day moving average price of $431.50 and a two-hundred day moving average price of $449.24. The company has a debt-to-equity ratio of 1.11, a current ratio of 4.30 and a quick ratio of 4.30.

AppLovin (NASDAQ:APP - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The company reported $3.76 EPS for the quarter, hitting the consensus estimate of $3.76. AppLovin had a net margin of 64.58% and a return on equity of 193.10%. The company had revenue of $1.92 billion for the quarter, compared to the consensus estimate of $1.94 billion. During the same quarter last year, the firm posted $2.39 EPS. The firm's revenue was up 52.8% compared to the same quarter last year. On average, analysts forecast that AppLovin Corporation will post 15.57 EPS for the current fiscal year.

Insider Buying and Selling at AppLovin

In related news, CFO Matthew Stumpf sold 9,052 shares of the business's stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $600.00, for a total value of $5,431,200.00. Following the completion of the sale, the chief financial officer owned 177,450 shares in the company, valued at approximately $106,470,000. The trade was a 4.85% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Maynard G. Webb, Jr. sold 3,076 shares of the stock in a transaction that occurred on Monday, July 6th. The stock was sold at an average price of $521.29, for a total value of $1,603,488.04. Following the completion of the transaction, the director directly owned 120,444 shares in the company, valued at approximately $62,786,252.76. This trade represents a 2.49% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 303,280 shares of company stock valued at $153,835,185. 12.81% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On AppLovin

A number of institutional investors and hedge funds have recently bought and sold shares of APP. SkyOak Wealth LLC purchased a new stake in shares of AppLovin in the 2nd quarter worth $258,000. Beacon Financial Advisory LLC bought a new position in shares of AppLovin during the 2nd quarter worth $219,000. Triumph Capital Management increased its stake in shares of AppLovin by 28.8% during the second quarter. Triumph Capital Management now owns 1,034 shares of the company's stock valued at $533,000 after buying an additional 231 shares during the period. Proficio Capital Partners LLC purchased a new position in shares of AppLovin during the second quarter valued at $659,000. Finally, Spyglass Capital Management LLC raised its holdings in shares of AppLovin by 14.7% in the second quarter. Spyglass Capital Management LLC now owns 191,028 shares of the company's stock valued at $98,423,000 after acquiring an additional 24,471 shares in the last quarter. 41.85% of the stock is owned by institutional investors.

AppLovin Company Profile

AppLovin Corporation is a Palo Alto–based mobile technology company that provides software and services to help app developers grow and monetize their businesses. The company operates a data-driven advertising and marketing platform that connects app publishers and advertisers, delivering tools for user acquisition, monetization, analytics and creative optimization. AppLovin's technology is integrated into a broad set of mobile applications through software development kits (SDKs) and ad products designed to maximize revenue and engagement for developers.

Key components of AppLovin's offering include an ad mediation and exchange platform that enables publishers to manage and monetize inventory across multiple demand sources, and a user-acquisition platform that helps advertisers target and scale campaigns.

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