AppLovin (NASDAQ:APP) Shares Down 5.1% - Here's Why

Key Points

• AppLovin shares have decreased by 5.1%, trading between $566.90 and $569.89 during mid-day trading on Friday, with a total of 6,348,397 shares changing hands.
• Analysts have varying outlooks on AppLovin, with target prices ranging from $540.00 to $850.00, while the stock currently has an average rating of Moderate Buy.
• Despite the recent stock decline, AppLovin reported earnings of $2.26 per share, exceeding estimates, and revenue for the quarter grew by 77.1% year-over-year.

AppLovin Corporation (NASDAQ:APP - Get Free Report) shares traded down 5.1% during mid-day trading on Friday . The stock traded as low as $566.90 and last traded at $569.89. 6,348,397 shares traded hands during mid-day trading, a decline of 15% from the average session volume of 7,474,963 shares. The stock had previously closed at $600.32.

Analyst Ratings Changes

A number of research analysts recently weighed in on APP shares. Oppenheimer set a $740.00 target price on AppLovin in a report on Tuesday. UBS Group lifted their price objective on AppLovin from $540.00 to $810.00 and gave the company a "buy" rating in a research note on Friday, September 26th. Wedbush lifted their price target on shares of AppLovin from $725.00 to $745.00 and gave the company an "outperform" rating in a research report on Monday. Wall Street Zen cut shares of AppLovin from a "buy" rating to a "hold" rating in a research report on Saturday, August 9th. Finally, Citigroup lifted their price target on shares of AppLovin from $600.00 to $850.00 and gave the company a "buy" rating in a research report on Wednesday, October 1st. One equities research analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating, four have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $597.38.

AppLovin Stock Performance

The company has a 50 day moving average of $533.82 and a 200 day moving average of $399.03. The firm has a market cap of $192.77 billion, a price-to-earnings ratio of 80.95, a PEG ratio of 3.45 and a beta of 2.53. The company has a quick ratio of 2.74, a current ratio of 2.74 and a debt-to-equity ratio of 3.01.

AppLovin (NASDAQ:APP - Get Free Report) last issued 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. The business had revenue of $1.26 billion for the quarter, compared to analyst estimates of $1.37 billion. AppLovin had a net margin of 45.72% and a return on equity of 252.67%. The company's revenue for the quarter was up 77.1% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.89 EPS. As a group, equities research analysts expect that AppLovin Corporation will post 6.87 EPS for the current fiscal year.

Insider Buying and Selling

In other AppLovin news, insider Victoria Valenzuela sold 35,000 shares of the firm's stock in a transaction that occurred on Thursday, September 4th. The shares were sold at an average price of $502.23, for a total value of $17,578,050.00. Following the sale, the insider owned 269,955 shares in the company, valued at approximately $135,579,499.65. This trade represents a 11.48% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Dawson Alyssa Harvey sold 350 shares of the firm's stock in a transaction that occurred on Friday, September 5th. The shares were sold at an average price of $487.97, for a total transaction of $170,789.50. Following the completion of the sale, the director owned 3,150 shares in the company, valued at $1,537,105.50. The trade was a 10.00% decrease in their position. The disclosure for this sale can be found here. Insiders sold 1,156,788 shares of company stock valued at $514,863,333 over the last three months. Corporate insiders own 13.66% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of APP. Kingswood Wealth Advisors LLC grew its holdings in shares of AppLovin by 5.1% in the 1st quarter. Kingswood Wealth Advisors LLC now owns 1,663 shares of the company's stock worth $445,000 after acquiring an additional 80 shares during the last quarter. Wealth Enhancement Advisory Services LLC increased its stake in AppLovin by 62.7% in the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 172,378 shares of the company's stock worth $45,675,000 after purchasing an additional 66,453 shares in the last quarter. Park Avenue Securities LLC increased its stake in AppLovin by 30.6% in the 2nd quarter. Park Avenue Securities LLC now owns 20,890 shares of the company's stock worth $7,313,000 after purchasing an additional 4,890 shares in the last quarter. Yousif Capital Management LLC increased its position 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 worth $939,000 after acquiring an additional 119 shares in the last quarter. Finally, IFM Investors Pty Ltd grew its holdings in shares of AppLovin by 15.6% during the second quarter. IFM Investors Pty Ltd now owns 45,209 shares of the company's stock valued at $15,827,000 after buying an additional 6,104 shares in the last quarter. 41.85% of the stock is owned by institutional investors and hedge funds.

About AppLovin

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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