AppLovin (NASDAQ:APP) Shares Down 5.6% - Time to Sell?

Key Points

• AppLovin's shares fell by 5.6% in trading on Monday, reaching a low of $553.00, while the stock closed at $599.31 the previous day.
• Analysts have diverged in their ratings for AppLovin, with Morgan Stanley raising their target to $750.00, while others like Wall Street Zen downgraded their rating from "buy" to "hold."
• Insiders have sold over 1.15 million shares of the company in the last 90 days, indicating potential concerns from the company's management about future performance.

Shares of AppLovin Corporation (NASDAQ:APP - Get Free Report) traded down 5.6% on Monday . The company traded as low as $553.00 and last traded at $565.94. 6,489,451 shares traded hands during trading, a decline of 12% from the average session volume of 7,373,724 shares. The stock had previously closed at $599.31.

Analysts Set New Price Targets

A number of research analysts have weighed in on the stock. Morgan Stanley lifted their price target on shares of AppLovin from $480.00 to $750.00 and gave the company an "overweight" rating in a research report on Monday, September 29th. The Goldman Sachs Group reissued a "neutral" rating and set a $630.00 target price on shares of AppLovin in a research report on Tuesday, October 14th. Wedbush boosted their target price on shares of AppLovin from $725.00 to $745.00 and gave the stock an "outperform" rating in a research report on Monday, October 6th. Wall Street Zen cut shares of AppLovin from a "buy" rating to a "hold" rating in a research report on Saturday, August 9th. Finally, Zacks Research cut shares of AppLovin from a "strong-buy" rating to a "hold" rating in a research report on Monday, October 6th. One research analyst has rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $600.59.

AppLovin Trading Down 5.6%

The company has a quick ratio of 2.74, a current ratio of 2.74 and a debt-to-equity ratio of 3.01. The business's 50 day moving average is $556.25 and its 200-day moving average is $413.34. The firm has a market cap of $191.43 billion, a P/E ratio of 80.39, a price-to-earnings-growth ratio of 3.25 and a beta of 2.53.

AppLovin (NASDAQ:APP - Get Free Report) last released its earnings results on Wednesday, August 6th. The company reported $2.26 earnings per share for the quarter, beating the consensus estimate of $2.05 by $0.21. AppLovin had a net margin of 45.72% and a return on equity of 252.67%. The firm had revenue of $1.26 billion during the quarter, compared to analyst estimates of $1.37 billion. During the same quarter in the previous year, the firm earned $0.89 earnings per share. The firm's revenue for the quarter was up 77.1% compared to the same quarter last year. As a group, analysts forecast that AppLovin Corporation will post 6.87 earnings per share for the current fiscal year.

Insider Buying and Selling at AppLovin

In other news, Director Dawson Alyssa Harvey sold 350 shares of the company's stock in a transaction dated 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 transaction, the director owned 3,150 shares in the company, valued at approximately $1,537,105.50. This represents a 10.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Victoria Valenzuela sold 35,000 shares of the company's stock in a transaction dated Thursday, September 4th. The stock was sold at an average price of $502.23, for a total transaction of $17,578,050.00. Following the transaction, the insider owned 269,955 shares of the company's stock, valued at $135,579,499.65. This represents a 11.48% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 1,156,788 shares of company stock worth $514,863,333 in the last ninety days. 13.66% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On AppLovin

Institutional investors have recently modified their holdings of the company. Atala Financial Inc bought a new position in shares of AppLovin during the first quarter worth about $26,000. Hilltop National Bank acquired a new stake in AppLovin in the second quarter worth about $26,000. LFA Lugano Financial Advisors SA acquired a new stake in AppLovin in the second quarter worth about $26,000. Alpine Bank Wealth Management acquired a new stake in AppLovin in the first quarter worth about $27,000. Finally, Bartlett & CO. Wealth Management LLC acquired a new stake in AppLovin in the first quarter worth about $29,000. Institutional investors own 41.85% of the company's stock.

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.

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