AppLovin (NASDAQ:APP) Shares Down 1.4% - Should You Sell?

Key Points

• AppLovin shares fell 1.4% to $641.92 during mid-day trading, with a significant decrease in trading volume of 20% compared to the average session.
• Analysts have mixed ratings for the stock, with two Strong Buy, eighteen Buy, three Hold, and one Sell rating, reflecting an average target price of $513.38.
• Despite a strong EPS of $2.26 exceeding expectations, AppLovin's quarterly revenue of $1.26 billion fell short of the forecast, indicating potential challenges ahead.

AppLovin Corporation (NASDAQ:APP - Get Free Report)'s share price fell 1.4% during mid-day trading on Wednesday . The stock traded as low as $635.50 and last traded at $641.92. 5,949,476 shares traded hands during mid-day trading, a decline of 20% from the average session volume of 7,459,423 shares. The stock had previously closed at $651.18.

Analyst Upgrades and Downgrades

Several research firms recently issued reports on APP. JPMorgan Chase & Co. raised their price target on AppLovin from $400.00 to $425.00 and gave the company a "neutral" rating in a report on Thursday, August 7th. Jefferies Financial Group raised their target price on AppLovin from $560.00 to $615.00 and gave the stock a "buy" rating in a report on Friday, September 5th. Scotiabank restated an "outperform" rating on shares of AppLovin in a report on Thursday, August 28th. Wells Fargo & Company raised their price target on AppLovin from $480.00 to $491.00 and gave the stock an "overweight" rating in a research report on Thursday, August 21st. Finally, Needham & Company LLC reaffirmed a "hold" rating on shares of AppLovin in a research report on Tuesday, August 26th. Two analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $513.38.

AppLovin Stock Performance

The stock has a 50-day moving average of $463.24 and a 200-day moving average of $368.98. The firm has a market cap of $217.13 billion, a price-to-earnings ratio of 91.18, a price-to-earnings-growth ratio of 3.56 and a beta of 2.44. 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 announced its earnings results on Wednesday, August 6th. The company reported $2.26 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.05 by $0.21. AppLovin had a return on equity of 252.67% and a net margin of 45.72%.The business had revenue of $1.26 billion for the quarter, compared to analyst estimates of $1.37 billion. During the same quarter last year, the firm earned $0.89 EPS. AppLovin's revenue for the quarter was up 77.1% compared to the same quarter last year. As a group, analysts anticipate that AppLovin Corporation will post 6.87 EPS for the current fiscal year.

Insider Activity

In other AppLovin news, Director Herald Y. Chen sold 200,000 shares of the business's stock in a transaction that occurred on Thursday, August 14th. The stock was sold at an average price of $432.49, for a total transaction of $86,498,000.00. Following the transaction, the director owned 181,929 shares of the company's stock, valued at $78,682,473.21. The trade was a 52.37% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CTO Vasily Shikin sold 30,000 shares of the business's stock in a transaction that occurred on Friday, August 22nd. The stock was sold at an average price of $437.57, for a total value of $13,127,100.00. Following the transaction, the chief technology officer directly owned 3,360,104 shares in the company, valued at $1,470,280,707.28. This trade represents a 0.88% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 1,156,788 shares of company stock worth $514,863,333. Corporate insiders own 13.66% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in APP. Revolve Wealth Partners LLC bought a new position in shares of AppLovin during the 4th quarter worth approximately $294,000. Bison Wealth LLC bought a new stake in AppLovin in the 4th quarter valued at $239,000. Woodline Partners LP bought a new stake in AppLovin in the 4th quarter valued at $274,000. Toronto Dominion Bank boosted its stake in AppLovin by 22.0% in the 4th quarter. Toronto Dominion Bank now owns 30,705 shares of the company's stock valued at $9,943,000 after purchasing an additional 5,531 shares during the period. Finally, Mackenzie Financial Corp boosted its stake in AppLovin by 235.9% in the 4th quarter. Mackenzie Financial Corp now owns 30,499 shares of the company's stock valued at $9,876,000 after purchasing an additional 21,419 shares during the period. 41.85% of the stock is currently owned by institutional investors.

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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