AppLovin (NASDAQ:APP) Stock Price Down 2.3% - Should You Sell?

Key Points

• AppLovin's stock price fell by 2.3%, closing at $436.05, with trading volume down 79% from its average.
• Analysts have mixed perspectives, with Morgan Stanley raising its target price to $480 and a consensus rating of "Moderate Buy" likely influencing investor sentiment.
• The company reported earnings per share of $2.26, exceeding expectations, but fell short on revenue at $1.26 billion against the estimated $1.37 billion.

AppLovin Corporation (NASDAQ:APP - Get Free Report)'s stock price traded down 2.3% during mid-day trading on Thursday . The company traded as low as $426.00 and last traded at $436.05. 1,508,606 shares changed hands during trading, a decline of 79% from the average session volume of 7,161,786 shares. The stock had previously closed at $446.40.

Wall Street Analyst Weigh In

APP has been the subject of several research analyst reports. Morgan Stanley raised their price objective on shares of AppLovin from $460.00 to $480.00 and gave the stock an "overweight" rating in a report on Thursday, August 7th. The Goldman Sachs Group lifted their target price on shares of AppLovin from $335.00 to $435.00 and gave the company a "neutral" rating in a report on Friday, May 9th. Needham & Company LLC reiterated a "hold" rating on shares of AppLovin in a report on Thursday, June 26th. Benchmark reiterated a "buy" rating and set a $525.00 target price on shares of AppLovin in a report on Thursday, May 8th. Finally, JPMorgan Chase & Co. lifted their target price on shares of AppLovin from $400.00 to $425.00 and gave the company a "neutral" rating in a report on Thursday, August 7th. One investment analyst has rated the stock with a sell rating, four have given a hold rating, eighteen have given a buy rating and one has assigned a strong buy rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $472.33.

AppLovin Stock Down 3.4%

The business's 50 day moving average price is $370.02 and its 200-day moving average price is $342.07. The firm has a market capitalization of $145.93 billion, a PE ratio of 61.26, a P/E/G ratio of 2.61 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.

AppLovin (NASDAQ:APP - Get Free Report) last announced its earnings results on Wednesday, August 6th. The company reported $2.26 earnings per share for the quarter, topping 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 for the quarter, compared to the consensus estimate of $1.37 billion. During the same period in the prior year, the firm earned $0.89 EPS. The firm's revenue for the quarter was up 77.1% on a year-over-year basis. As a group, equities research analysts forecast that AppLovin Corporation will post 6.87 earnings per share for the current year.

Insider Transactions at AppLovin

In other AppLovin news, CFO Matthew Stumpf sold 9,714 shares of the company's stock in a transaction on Friday, June 6th. The shares were sold at an average price of $423.00, for a total transaction of $4,109,022.00. Following the completion of the transaction, the chief financial officer owned 192,421 shares in the company, valued at approximately $81,394,083. This represents a 4.81% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Dawson Alyssa Harvey sold 513 shares of the company's stock in a transaction on Friday, June 6th. The stock was sold at an average price of $420.30, for a total transaction of $215,613.90. Following the transaction, the director owned 3,451 shares of the company's stock, valued at approximately $1,450,455.30. The trade was a 12.94% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 400,398 shares of company stock worth $151,712,641 over the last 90 days. Company insiders own 13.66% of the company's stock.

Institutional Investors Weigh In On AppLovin

Large investors have recently added to or reduced their stakes in the business. Hilltop National Bank acquired a new stake in shares of AppLovin in the second quarter worth approximately $26,000. LFA Lugano Financial Advisors SA acquired a new stake in shares of AppLovin in the second quarter worth approximately $26,000. Fuller & Thaler Asset Management Inc. acquired a new stake in shares of AppLovin in the fourth quarter worth approximately $25,000. Twin Peaks Wealth Advisors LLC purchased a new position in AppLovin in the second quarter valued at approximately $33,000. Finally, Atala Financial Inc purchased a new position in AppLovin in the first quarter valued at approximately $26,000. 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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