AppLovin (NASDAQ:APP) Trading Down 1.5% - What's Next?

AppLovin Co. (NASDAQ:APP - Get Free Report) shares traded down 1.5% during mid-day trading on Tuesday . The company traded as low as $394.55 and last traded at $395.72. 1,663,291 shares changed hands during trading, a decline of 73% from the average session volume of 6,073,148 shares. The stock had previously closed at $401.91.

Analyst Upgrades and Downgrades

Several research firms recently commented on APP. HSBC set a $436.00 price target on shares of AppLovin and gave the stock a "buy" rating in a research note on Wednesday, April 23rd. Citigroup reaffirmed a "buy" rating on shares of AppLovin in a research report on Thursday, May 29th. Oppenheimer reaffirmed an "outperform" rating and set a $500.00 price target (down previously from $560.00) on shares of AppLovin in a research note on Thursday, May 8th. Wells Fargo & Company increased their price objective on AppLovin from $386.00 to $405.00 and gave the stock an "overweight" rating in a research note on Thursday, May 8th. Finally, Arete Research set a $200.00 price objective on AppLovin in a report on Wednesday, March 5th. One research analyst has rated the stock with a sell rating, three have given a hold rating, seventeen have issued a buy rating and one has assigned a strong buy rating to the company's stock. According to MarketBeat, AppLovin has a consensus rating of "Moderate Buy" and a consensus target price of $436.10.

AppLovin Stock Performance

The company has a debt-to-equity ratio of 3.70, a quick ratio of 2.41 and a current ratio of 2.41. The stock has a market cap of $140.94 billion, a PE ratio of 91.74, a price-to-earnings-growth ratio of 3.02 and a beta of 2.39. The firm has a fifty day moving average price of $305.48 and a 200 day moving average price of $330.82.

AppLovin (NASDAQ:APP - Get Free Report) last announced its earnings results on Wednesday, May 7th. The company reported $1.67 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.45 by $0.22. The company had revenue of $1.48 billion for the quarter, compared to analyst estimates of $1.38 billion. AppLovin had a return on equity of 188.55% and a net margin of 33.54%. The firm's quarterly revenue was up 40.3% compared to the same quarter last year. During the same period in the prior year, the company posted $0.67 EPS. Research analysts forecast that AppLovin Co. will post 6.87 earnings per share for the current fiscal year.

Insider Buying and Selling at AppLovin

In related news, CTO Vasily Shikin sold 17,500 shares of the firm's stock in a transaction on Monday, March 10th. The shares were sold at an average price of $241.65, for a total transaction of $4,228,875.00. Following the completion of the transaction, the chief technology officer now owns 88,389 shares of the company's stock, valued at $21,359,201.85. This trade represents a 16.53% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Victoria Valenzuela sold 6,599 shares of the company's stock in a transaction on Wednesday, May 21st. The shares were sold at an average price of $369.35, for a total transaction of $2,437,340.65. Following the completion of the sale, the insider now directly owns 344,256 shares in the company, valued at approximately $127,150,953.60. The trade was a 1.88% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 1,115,754 shares of company stock worth $411,165,970. 14.69% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. FMR LLC increased its holdings in shares of AppLovin by 75.5% during the 4th quarter. FMR LLC now owns 13,851,122 shares of the company's stock valued at $4,485,409,000 after purchasing an additional 5,957,885 shares in the last quarter. SVB Wealth LLC acquired a new stake in AppLovin during the fourth quarter valued at $1,781,922,000. Baillie Gifford & Co. increased its holdings in AppLovin by 5,421.4% in the fourth quarter. Baillie Gifford & Co. now owns 4,084,496 shares of the company's stock valued at $1,322,682,000 after buying an additional 4,010,520 shares in the last quarter. Dynasty Wealth Management LLC raised its position in shares of AppLovin by 117,664.4% in the first quarter. Dynasty Wealth Management LLC now owns 2,702,694 shares of the company's stock worth $716,133,000 after acquiring an additional 2,700,399 shares during the period. Finally, Norges Bank acquired a new position in shares of AppLovin in the fourth quarter worth about $828,138,000. 41.85% of the stock is owned by institutional investors and hedge funds.

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.