AppLovin (NASDAQ:APP) Stock Price Down 2.4% - Should You Sell?

Key Points

• AppLovin's stock price fell 2.4% to $552.64, with trading volume 43% lower than average.
• Wall Street analysts remain bullish on AppLovin, with one Strong Buy, twenty-one Buy, and four Hold ratings, while the average target price is set at $600.59.
• The company's last earnings report showed revenue of $1.26 billion, beating earnings per share expectations but falling short on revenue estimates.

AppLovin Corporation (NASDAQ:APP - Get Free Report) traded down 2.4% during mid-day trading on Tuesday . The company traded as low as $547.13 and last traded at $552.64. 4,172,456 shares traded hands during mid-day trading, a decline of 43% from the average session volume of 7,358,148 shares. The stock had previously closed at $565.94.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on the stock. Weiss Ratings reiterated a "buy (b-)" rating on shares of AppLovin in a research report on Wednesday, October 8th. Wells Fargo & Company upped their target price on AppLovin from $491.00 to $633.00 and gave the stock an "overweight" rating in a research report on Tuesday, October 14th. Bank of America lifted their price target on AppLovin from $580.00 to $860.00 and gave the company a "buy" rating in a report on Wednesday, October 1st. Wedbush raised their price objective on shares of AppLovin from $725.00 to $745.00 and gave the company an "outperform" rating in a research report on Monday, October 6th. Finally, Morgan Stanley increased their price target on shares of AppLovin from $480.00 to $750.00 and gave the stock an "overweight" rating in a research note on Monday, September 29th. 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 assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $600.59.

AppLovin Stock Performance

The stock has a market cap of $186.93 billion, a price-to-earnings ratio of 78.50, a price-to-earnings-growth ratio of 3.25 and a beta of 2.53. The stock's 50-day simple moving average is $558.26 and its two-hundred day simple moving average is $415.77. 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, beating the consensus estimate of $2.05 by $0.21. The firm had revenue of $1.26 billion during the quarter, compared to the consensus estimate of $1.37 billion. AppLovin had a return on equity of 252.67% and a net margin of 45.72%.The firm's revenue for the quarter was up 77.1% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.89 EPS. Analysts forecast that AppLovin Corporation will post 6.87 earnings per share for the current year.

Insider Transactions at AppLovin

In related news, CTO Vasily Shikin sold 30,000 shares of the firm's stock in a transaction on Friday, August 22nd. The stock was sold at an average price of $437.57, for a total value of $13,127,100.00. Following the completion of the transaction, the chief technology officer directly owned 3,360,104 shares of the company's stock, valued at $1,470,280,707.28. This trade represents a 0.88% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Arash Adam Foroughi sold 26,200 shares of the business's stock in a transaction on Friday, August 22nd. The shares were sold at an average price of $440.23, for a total transaction of $11,534,026.00. Following the completion of the sale, the chief executive officer directly owned 2,590,054 shares in the company, valued at $1,140,219,472.42. This trade represents a 1.00% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 1,156,788 shares of company stock worth $514,863,333 over the last 90 days. Insiders own 13.66% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Atala Financial Inc acquired a new stake in AppLovin in the 1st quarter valued at $26,000. Hilltop National Bank bought a new stake in AppLovin during the second quarter worth about $26,000. LFA Lugano Financial Advisors SA acquired a new position in AppLovin during the 2nd quarter worth about $26,000. Alpine Bank Wealth Management acquired a new position in AppLovin during the 1st quarter worth $27,000. Finally, Bartlett & CO. Wealth Management LLC acquired a new position in AppLovin during the 1st quarter valued at about $29,000. Institutional investors and hedge funds 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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