AppLovin (NASDAQ:APP) Shares Down 1.3% - Time to Sell?

Key Points

• AppLovin's share price dropped 1.3% to $477.23, with trading volume significantly lower at approximately 1.5 million shares, compared to an average of 7 million shares.
• The company reported earnings of $2.26 per share, surpassing analysts' expectations, but its revenue of $1.26 billion fell short of the forecast of $1.37 billion.
• Analysts maintain a consensus rating of "Moderate Buy"** with a target price of $478.81, though ratings range from "Strong Buy" to "Sell" from various research firms.

AppLovin Corporation (NASDAQ:APP - Get Free Report)'s share price dropped 1.3% on Friday . The company traded as low as $474.17 and last traded at $477.23. Approximately 1,485,250 shares were traded during trading, a decline of 79% from the average daily volume of 7,002,963 shares. The stock had previously closed at $483.75.

Analyst Ratings Changes

APP has been the subject of a number of research reports. Zacks Research raised AppLovin to a "strong-buy" rating in a research note on Friday, August 8th. Wall Street Zen cut AppLovin from a "buy" rating to a "hold" rating in a report on Saturday, August 9th. Benchmark reissued a "buy" rating and issued a $525.00 target price on shares of AppLovin in a report on Thursday, May 8th. Jefferies Financial Group upped their price target on shares of AppLovin from $460.00 to $530.00 and gave the company a "buy" rating in a research note on Thursday, May 8th. Finally, Piper Sandler boosted their target price on shares of AppLovin from $470.00 to $500.00 and gave the stock an "overweight" rating in a report on Thursday, August 7th. Two research analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, three have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $478.81.

AppLovin Stock Down 1.5%

The business's fifty day moving average is $384.32 and its two-hundred day moving average is $347.60. The company has a market cap of $161.19 billion, a P/E ratio of 67.63, a price-to-earnings-growth ratio of 2.59 and a beta of 2.43. The company has a debt-to-equity ratio of 3.01, a quick ratio of 2.74 and a current ratio of 2.74.

AppLovin (NASDAQ:APP - Get Free Report) last posted its earnings results on Wednesday, August 6th. The company reported $2.26 earnings per share for the quarter, topping analysts' consensus estimates of $2.05 by $0.21. The company had revenue of $1.26 billion during the quarter, compared to analyst estimates of $1.37 billion. AppLovin had a return on equity of 252.67% and a net margin of 45.72%.AppLovin's revenue was up 77.1% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.89 earnings per share. Equities analysts predict that AppLovin Corporation will post 6.87 EPS for the current year.

Insider Activity at AppLovin

In other news, CEO Arash Adam Foroughi sold 90,000 shares of AppLovin stock in a transaction on Thursday, August 21st. The shares were sold at an average price of $421.04, for a total transaction of $37,893,600.00. Following the completion of the sale, the chief executive officer directly owned 2,620,054 shares in the company, valued at approximately $1,103,147,536.16. The trade was a 3.32% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Herald Y. Chen sold 200,000 shares of the firm's stock in a transaction on Tuesday, August 12th. The stock was sold at an average price of $464.69, for a total transaction of $92,938,000.00. Following the transaction, the director directly owned 381,929 shares of the company's stock, valued at approximately $177,478,587.01. This trade represents a 34.37% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 1,236,152 shares of company stock worth $545,240,378. Corporate insiders own 13.66% of the company's stock.

Institutional Trading of AppLovin

Several institutional investors have recently modified their holdings of APP. Revolve Wealth Partners LLC acquired a new stake in shares of AppLovin in the fourth quarter valued at about $294,000. Integrated Wealth Concepts LLC acquired a new stake in shares of AppLovin in the fourth quarter valued at about $347,000. Utah Retirement Systems grew its stake in AppLovin by 212.8% during the 4th quarter. Utah Retirement Systems now owns 44,100 shares of the company's stock valued at $14,281,000 after acquiring an additional 30,000 shares in the last quarter. Voleon Capital Management LP acquired a new position in AppLovin in the 4th quarter valued at about $1,248,000. Finally, Kapitalo Investimentos Ltda purchased a new position in AppLovin in the fourth quarter worth approximately $46,000. Institutional investors and hedge funds 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.

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