AppLovin (NASDAQ:APP) Shares Down 1.1% Following Analyst Downgrade

Key Points

• AppLovin shares fell 1.1% to $311.98 after Benchmark cut its price target from $500 to $440, while maintaining a Buy rating.
• Despite multiple recent target reductions, analyst sentiment remains positive: the stock has a consensus rating of Moderate Buy and an average price target of $557.83.
• AppLovin reported quarterly EPS of $3.76 and revenue of $1.92 billion, with revenue up 52.8% year over year. Insiders sold approximately $197.3 million of shares during the latest quarter, while institutional investors own 41.85% of the stock.

AppLovin Corporation (NASDAQ:APP - Get Free Report) dropped 1.1% on Monday after Benchmark lowered their price target on the stock from $500.00 to $440.00. Benchmark currently has a buy rating on the stock. AppLovin traded as low as $307.70 and last traded at $311.98. 5,626,039 shares changed hands during trading, a decline of 3% from the average daily volume of 5,782,994 shares. The stock had previously closed at $315.44.

Several other analysts have also issued reports on APP. UBS Group cut their price target on shares of AppLovin from $798.00 to $790.00 and set a "buy" rating for the company in a research report on Thursday, August 6th. Royal Bank Of Canada lowered their target price on AppLovin from $700.00 to $575.00 and set an "outperform" rating for the company in a research note on Thursday, August 6th. The Goldman Sachs Group dropped their target price on AppLovin from $585.00 to $465.00 and set a "neutral" rating for the company in a report on Thursday, August 6th. Citigroup reduced their price target on AppLovin from $710.00 to $650.00 and set a "buy" rating on the stock in a research report on Friday, August 7th. Finally, KeyCorp set a $775.00 price target on AppLovin in a research note on Wednesday, June 10th. Three analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eight have issued a Hold rating to the company. According to data from MarketBeat.com, AppLovin has a consensus rating of "Moderate Buy" and an average price target of $557.83.

Insider Activity at AppLovin

In related news, CFO Matthew Stumpf sold 9,052 shares of the firm's stock in a transaction dated 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 sale, the chief financial officer directly owned 177,450 shares of the company's stock, valued at $106,470,000. This trade represents a 4.85% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Eduardo Vivas sold 163,910 shares of the business's stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $504.06, for a total value of $82,620,474.60. Following the transaction, the director owned 6,785,087 shares in the company, valued at approximately $3,420,090,953.22. This represents a 2.36% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 393,000 shares of company stock valued at $197,297,363 in the last quarter. 12.81% of the stock is currently owned by company insiders.

Institutional Trading of AppLovin

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Verdence Capital Advisors LLC raised its holdings in shares of AppLovin by 5.7% during the fourth quarter. Verdence Capital Advisors LLC now owns 333 shares of the company's stock worth $224,000 after purchasing an additional 18 shares during the last quarter. Finivi Inc. boosted its holdings in AppLovin by 3.2% in the fourth quarter. Finivi Inc. now owns 711 shares of the company's stock valued at $479,000 after purchasing an additional 22 shares during the last quarter. Revolve Wealth Partners LLC grew its position in AppLovin by 2.8% during the 2nd quarter. Revolve Wealth Partners LLC now owns 851 shares of the company's stock worth $438,000 after purchasing an additional 23 shares during the period. Rehmann Capital Advisory Group raised its stake in shares of AppLovin by 2.2% during the 3rd quarter. Rehmann Capital Advisory Group now owns 1,115 shares of the company's stock valued at $828,000 after buying an additional 24 shares during the last quarter. Finally, Alta Wealth Advisors LLC raised its stake in shares of AppLovin by 0.6% during the 4th quarter. Alta Wealth Advisors LLC now owns 3,925 shares of the company's stock valued at $2,645,000 after buying an additional 24 shares during the last quarter. Hedge funds and other institutional investors own 41.85% of the company's stock.

AppLovin Trading Down 1.1%

The firm has a market cap of $104.40 billion, a price-to-earnings ratio of 23.98, a PEG ratio of 0.63 and a beta of 2.54. The company has a fifty day moving average price of $447.84 and a 200-day moving average price of $455.50. The company has a current ratio of 4.30, a quick ratio of 4.30 and a debt-to-equity ratio of 1.11.

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

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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