AppLovin (NASDAQ:APP) Shares Down 1.5% - Here's What Happened

AppLovin Co. (NASDAQ:APP - Get Free Report) fell 1.5% on Tuesday . The stock traded as low as $360.86 and last traded at $365.01. 1,251,961 shares traded hands during trading, a decline of 79% from the average session volume of 6,014,973 shares. The stock had previously closed at $370.63.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on the company. Wells Fargo & Company lifted their price objective on AppLovin from $386.00 to $405.00 and gave the company an "overweight" rating in a research note on Thursday, May 8th. Jefferies Financial Group lifted their price target on shares of AppLovin from $460.00 to $530.00 and gave the stock a "buy" rating in a research note on Thursday, May 8th. The Goldman Sachs Group boosted their price target on shares of AppLovin from $335.00 to $435.00 and gave the stock a "neutral" rating in a report on Friday, May 9th. Piper Sandler raised their price objective on shares of AppLovin from $425.00 to $455.00 and gave the company an "overweight" rating in a report on Thursday, May 8th. Finally, Morgan Stanley boosted their target price on shares of AppLovin from $350.00 to $420.00 and gave the stock an "overweight" rating in a research note on Thursday, May 8th. One research analyst has rated the stock with a sell rating, three have given a hold rating, seventeen have assigned a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $433.85.

AppLovin Price Performance

The company's 50-day simple moving average is $290.23 and its 200-day simple moving average is $321.52. 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 company has a market capitalization of $123.24 billion, a PE ratio of 80.45, a P/E/G ratio of 3.02 and a beta of 2.39.

AppLovin (NASDAQ:APP - Get Free Report) last released its quarterly earnings results on Wednesday, May 7th. The company reported $1.67 EPS for the quarter, topping the consensus estimate of $1.45 by $0.22. AppLovin had a return on equity of 188.55% and a net margin of 33.54%. The business had revenue of $1.48 billion during the quarter, compared to analysts' expectations of $1.38 billion. During the same quarter in the prior year, the business earned $0.67 earnings per share. The company's quarterly revenue was up 40.3% compared to the same quarter last year. As a group, sell-side analysts anticipate that AppLovin Co. will post 6.87 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director Herald Y. Chen sold 400,000 shares of the stock in a transaction dated Wednesday, May 14th. The shares were sold at an average price of $374.61, for a total value of $149,844,000.00. Following the completion of the transaction, the director now owns 221,209 shares in the company, valued at $82,867,103.49. This trade represents a 64.39% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Arash Adam Foroughi sold 45,000 shares of the firm's stock in a transaction dated Friday, February 21st. The shares were sold at an average price of $422.21, for a total transaction of $18,999,450.00. Following the completion of the sale, the chief executive officer now owns 2,914,492 shares of the company's stock, valued at $1,230,527,667.32. This trade represents a 1.52% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 1,132,654 shares of company stock worth $414,627,485. 14.69% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. McAdam LLC boosted its stake in shares of AppLovin by 54.6% during the 1st quarter. McAdam LLC now owns 1,940 shares of the company's stock worth $514,000 after acquiring an additional 685 shares in the last quarter. Acadian Asset Management LLC boosted its position in AppLovin by 65.6% during the first quarter. Acadian Asset Management LLC now owns 17,960 shares of the company's stock worth $4,752,000 after purchasing an additional 7,113 shares in the last quarter. Geneos Wealth Management Inc. grew its holdings in AppLovin by 285.8% in the first quarter. Geneos Wealth Management Inc. now owns 4,398 shares of the company's stock valued at $1,165,000 after purchasing an additional 3,258 shares during the last quarter. Intech Investment Management LLC increased its position in shares of AppLovin by 24.2% in the first quarter. Intech Investment Management LLC now owns 84,364 shares of the company's stock valued at $22,354,000 after buying an additional 16,419 shares in the last quarter. Finally, Capital Impact Advisors LLC acquired a new position in shares of AppLovin during the 1st quarter worth $8,957,000. 41.85% of the stock is currently 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.