AppLovin (NASDAQ:APP) Shares Down 2.3% - Here's What Happened

Key Points

• AppLovin shares fell 2.3% to $298.59 in mid-day trading, with volume below the stock’s average session level.
• Analysts remain broadly bullish, with a consensus rating of “Moderate Buy” and an average price target of $553.83, despite several firms recently lowering their targets.
• The company’s latest quarter showed strong growth: revenue rose 52.8% year over year to $1.92 billion, while EPS of $3.76 matched analyst expectations. Insiders, however, sold more than $153.8 million worth of shares over the last quarter.

AppLovin Corporation (NASDAQ:APP - Get Free Report)'s share price traded down 2.3% during mid-day trading on Monday . The stock traded as low as $297.50 and last traded at $298.59. 4,524,905 shares changed hands during trading, a decline of 21% from the average session volume of 5,754,948 shares. The stock had previously closed at $305.77.

Analyst Upgrades and Downgrades

APP has been the topic of a number of recent research reports. Needham & Company LLC lowered their target price on AppLovin from $700.00 to $500.00 and set a "buy" rating on the stock in a research note on Thursday, August 6th. KeyCorp set a $775.00 price target on shares of AppLovin in a research report on Wednesday, June 10th. BTIG Research dropped their target price on AppLovin from $574.00 to $408.00 and set a "buy" rating on the stock in a research report on Wednesday, August 12th. Wedbush dropped their price objective on AppLovin from $640.00 to $610.00 and set an "outperform" rating on the stock in a report on Thursday, August 6th. Finally, UBS Group dropped their price target on shares of AppLovin from $798.00 to $790.00 and set a "buy" rating on the stock in a research note on Thursday, August 6th. Three equities research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eight have assigned a Hold rating to the stock. According to data from MarketBeat.com, AppLovin presently has an average rating of "Moderate Buy" and a consensus target price of $553.83.

AppLovin Trading Down 2.3%

The company has a current ratio of 4.30, a quick ratio of 4.30 and a debt-to-equity ratio of 1.11. The firm has a market capitalization of $99.92 billion, a price-to-earnings ratio of 22.95, a PEG ratio of 0.62 and a beta of 2.54. The company has a fifty day moving average price of $427.68 and a two-hundred day moving average price of $447.99.

AppLovin (NASDAQ:APP - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The company reported $3.76 EPS for the quarter, hitting the consensus estimate of $3.76. The business 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%.The company's quarterly revenue was up 52.8% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $2.39 EPS. As a group, research analysts forecast that AppLovin Corporation will post 15.53 earnings per share for the current fiscal year.

Insider Activity at AppLovin

In other news, CFO Matthew Stumpf sold 9,052 shares of the company's stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $600.00, for a total value of $5,431,200.00. Following the transaction, the chief financial officer directly owned 177,450 shares in the company, valued at approximately $106,470,000. This represents a 4.85% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CEO Arash Adam Foroughi sold 33,042 shares of AppLovin stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $486.95, for a total transaction of $16,089,801.90. Following the completion of the sale, the chief executive officer owned 2,369,351 shares of the company's stock, valued at $1,153,755,469.45. This trade represents a 1.38% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 303,280 shares of company stock valued at $153,835,185 over the last quarter. 12.81% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. CYBER HORNET ETFs LLC increased its position in shares of AppLovin by 795.2% during the second quarter. CYBER HORNET ETFs LLC now owns 6,669 shares of the company's stock worth $3,436,000 after acquiring an additional 5,924 shares during the period. California State Teachers Retirement System increased its holdings in AppLovin by 50,874.8% during the 2nd quarter. California State Teachers Retirement System now owns 178,017,633 shares of the company's stock worth $91,720,025,000 after purchasing an additional 177,668,406 shares during the period. Greenland Capital Management LP acquired a new stake in AppLovin in the 2nd quarter valued at about $548,000. Washington Trust Advisors Inc. boosted its stake in shares of AppLovin by 30.9% in the 2nd quarter. Washington Trust Advisors Inc. now owns 144 shares of the company's stock valued at $74,000 after buying an additional 34 shares during the period. Finally, Ameritas Advisory Services LLC grew its position in shares of AppLovin by 161.2% during the second quarter. Ameritas Advisory Services LLC now owns 2,131 shares of the company's stock worth $1,098,000 after buying an additional 1,315 shares in the last quarter. Hedge funds and other institutional investors own 41.85% of the company's stock.

About AppLovin

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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