AppLovin (NASDAQ:APP) Stock Price Down 3% - Here's What Happened

AppLovin Corporation (NASDAQ:APP - Get Free Report) shares were down 3% during mid-day trading on Friday . The stock traded as low as $336.89 and last traded at $335.82. Approximately 875,207 shares were traded during mid-day trading, a decline of 86% from the average daily volume of 6,211,828 shares. The stock had previously closed at $346.32.

Analysts Set New Price Targets

Several equities analysts have recently issued reports on APP shares. Needham & Company LLC reiterated a "hold" rating on shares of AppLovin in a research note on Thursday, June 26th. JPMorgan Chase & Co. boosted their target price on AppLovin from $355.00 to $400.00 and gave the stock a "neutral" rating in a research note on Tuesday, June 3rd. Citigroup restated a "buy" rating on shares of AppLovin in a research note on Thursday, May 29th. UBS Group boosted their target price on AppLovin from $450.00 to $475.00 and gave the stock a "buy" rating in a research note on Thursday, May 8th. Finally, The Goldman Sachs Group boosted their target price on AppLovin from $335.00 to $435.00 and gave the stock a "neutral" rating in a research note on Friday, May 9th. One equities research analyst has rated the stock with a sell rating, three have given a hold rating, sixteen have issued a buy rating and three have given a strong buy rating to the company. Based on data from MarketBeat.com, AppLovin has an average rating of "Moderate Buy" and a consensus price target of $438.43.

AppLovin Price Performance

The company has a debt-to-equity ratio of 6.10, a current ratio of 1.68 and a quick ratio of 1.68. The company has a 50-day moving average price of $358.23 and a 200-day moving average price of $334.33. The firm has a market capitalization of $113.39 billion, a PE ratio of 60.49, a P/E/G ratio of 2.06 and a beta of 2.42.

AppLovin (NASDAQ:APP - Get Free Report) last issued its quarterly earnings results on Wednesday, May 7th. The company reported $1.67 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.45 by $0.22. The firm had revenue of $1.48 billion for the quarter, compared to analyst estimates of $1.38 billion. AppLovin had a return on equity of 224.65% and a net margin of 37.38%. The firm's quarterly revenue was up 40.3% on a year-over-year basis. During the same period last year, the company earned $0.67 EPS. Sell-side analysts forecast that AppLovin Corporation will post 6.87 EPS for the current year.

Insider Buying and Selling

In other news, CTO Vasily Shikin sold 17,734 shares of the firm's stock in a transaction dated Friday, May 23rd. The stock was sold at an average price of $353.41, for a total value of $6,267,372.94. Following the transaction, the chief technology officer directly owned 70,889 shares in the company, valued at $25,052,881.49. This trade represents a 20.01% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Dawson Alyssa Harvey sold 513 shares of the firm's stock in a transaction dated Friday, June 6th. The stock was sold at an average price of $420.30, for a total value of $215,613.90. Following the completion of the transaction, the director owned 3,451 shares in the company, valued at approximately $1,450,455.30. This trade represents a 12.94% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 1,212,968 shares of company stock worth $455,062,980 over the last ninety days. Insiders own 13.66% of the company's stock.

Hedge Funds Weigh In On AppLovin

Large investors have recently modified their holdings of the company. Kingswood Wealth Advisors LLC grew its stake in shares of AppLovin by 5.1% in the first quarter. Kingswood Wealth Advisors LLC now owns 1,663 shares of the company's stock valued at $445,000 after buying an additional 80 shares in the last quarter. Wealth Enhancement Advisory Services LLC grew its stake in shares of AppLovin by 62.7% in the first quarter. Wealth Enhancement Advisory Services LLC now owns 172,378 shares of the company's stock valued at $45,675,000 after buying an additional 66,453 shares in the last quarter. Yousif Capital Management LLC grew its stake in shares of AppLovin by 3.5% in the first quarter. Yousif Capital Management LLC now owns 3,544 shares of the company's stock valued at $939,000 after buying an additional 119 shares in the last quarter. Peak Retirement Planning Inc. acquired a new stake in shares of AppLovin in the fourth quarter valued at about $969,000. Finally, Assenagon Asset Management S.A. grew its stake in shares of AppLovin by 3.0% in the first quarter. Assenagon Asset Management S.A. now owns 4,173 shares of the company's stock valued at $1,106,000 after buying an additional 121 shares in the last quarter. 41.85% of the stock is currently owned by hedge funds and other 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.