AppLovin (NASDAQ:APP) Stock Price Down 1.2% - Here's Why

Key Points

• AppLovin's stock price fell 1.2% to $463.56, with trading volume down 84% compared to the average, indicating significant market activity and interest volatility.
• Analysts maintain a positive outlook on AppLovin, with a range of price targets updated and most ratings indicating a 'Buy' or higher, leading to an average price target of $472.86.
• Recent insider trading saw Director Herald Y. Chen sell 200,000 shares for approximately $92.9 million, reducing their stake by 34.37%, which often raises questions about insider confidence.

AppLovin Corporation (NASDAQ:APP - Get Free Report)'s stock price traded down 1.2% on Wednesday . The stock traded as low as $462.24 and last traded at $463.56. 1,158,569 shares changed hands during trading, a decline of 84% from the average session volume of 7,033,454 shares. The stock had previously closed at $469.33.

Analyst Ratings Changes

A number of equities analysts have recently weighed in on APP shares. Morgan Stanley boosted their price objective on shares of AppLovin from $460.00 to $480.00 and gave the company an "overweight" rating in a research report on Thursday, August 7th. BTIG Research upped their price target on shares of AppLovin from $480.00 to $483.00 and gave the stock a "buy" rating in a research report on Wednesday, July 23rd. The Goldman Sachs Group boosted their price objective on shares of AppLovin from $335.00 to $435.00 and gave the stock a "neutral" rating in a research note on Friday, May 9th. Zacks Research upgraded shares of AppLovin to a "strong-buy" rating in a research note on Friday, August 8th. Finally, Scotiabank upped their target price on shares of AppLovin from $430.00 to $450.00 and gave the company a "sector outperform" rating in a research note on Thursday, August 7th. Two investment analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $472.86.

AppLovin Stock Performance

The firm has a market cap of $156.69 billion, a price-to-earnings ratio of 65.75, a PEG ratio of 2.52 and a beta of 2.43. The company has a debt-to-equity ratio of 3.01, a quick ratio of 2.74 and a current ratio of 2.74. The stock's fifty day moving average is $379.16 and its two-hundred day moving average is $346.11.

AppLovin (NASDAQ:APP - Get Free Report) last released its earnings results on Wednesday, August 6th. The company reported $2.26 EPS for the quarter, beating the consensus estimate of $2.05 by $0.21. The firm had revenue of $1.26 billion for the quarter, compared to analysts' expectations of $1.37 billion. AppLovin had a net margin of 45.72% and a return on equity of 252.67%. AppLovin's quarterly revenue was up 77.1% on a year-over-year basis. During the same quarter last year, the company earned $0.89 EPS. On average, analysts expect 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 Herald Y. Chen sold 200,000 shares of the firm's stock in a transaction dated Tuesday, August 12th. The shares were sold at an average price of $464.69, for a total transaction of $92,938,000.00. Following the completion of the transaction, the director owned 381,929 shares in the company, valued at approximately $177,478,587.01. This trade represents a 34.37% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, CTO Vasily Shikin sold 30,000 shares of the firm's stock in a transaction dated Friday, August 22nd. The shares were sold at an average price of $437.57, for a total transaction of $13,127,100.00. Following the transaction, the chief technology officer owned 3,360,104 shares of the company's stock, valued at approximately $1,470,280,707.28. This trade represents a 0.88% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 1,221,152 shares of company stock worth $538,490,378. Company insiders own 13.66% of the company's stock.

Hedge Funds Weigh In On AppLovin

Large investors have recently made changes to their positions in the business. Atala Financial Inc bought a new position in shares of AppLovin during the 1st quarter valued at about $26,000. Hilltop National Bank bought a new position in shares of AppLovin during the 2nd quarter valued at about $26,000. LFA Lugano Financial Advisors SA acquired a new position in shares of AppLovin in the second quarter worth about $26,000. Alpine Bank Wealth Management acquired a new position in shares of AppLovin in the first quarter worth about $27,000. Finally, ORG Wealth Partners LLC acquired a new position in shares of AppLovin in the first quarter worth about $29,000. Institutional investors own 41.85% of the company's stock.

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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