AppLovin (NASDAQ:APP) Stock Price Down 2.6% - What's Next?

Key Points

• AppLovin's stock price decreased by 2.6% during mid-day trading, with around 2.7 million shares traded, significantly below its average daily volume.
• Analysts have a consensus target price of $447.57 for AppLovin, with several upgrades to buy ratings from various financial institutions, including Jefferies and Goldman Sachs.
• The company reported earnings per share of $1.67 for the last quarter, surpassing analysts' estimates and demonstrating a year-over-year revenue increase of 40.3%.

AppLovin Corporation (NASDAQ:APP - Get Free Report)'s share price was down 2.6% during mid-day trading on Friday . The company traded as low as $366.47 and last traded at $380.36. Approximately 2,746,808 shares traded hands during mid-day trading, a decline of 61% from the average daily volume of 7,079,602 shares. The stock had previously closed at $390.70.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on APP shares. Jefferies Financial Group boosted their price target on AppLovin from $460.00 to $530.00 and gave the stock a "buy" rating in a research note on Thursday, May 8th. The Goldman Sachs Group boosted their price objective on shares of AppLovin from $335.00 to $435.00 and gave the company a "neutral" rating in a report on Friday, May 9th. Wall Street Zen upgraded AppLovin from a "hold" rating to a "buy" rating in a research note on Saturday, July 26th. UBS Group upped their price target on shares of AppLovin from $450.00 to $475.00 and gave the company a "buy" rating in a report on Thursday, May 8th. Finally, Wells Fargo & Company upped their target price on AppLovin from $386.00 to $405.00 and gave the stock an "overweight" rating in a research note on Thursday, May 8th. One analyst has rated the stock with a sell rating, three have given a hold rating, seventeen have given a buy rating and three have given a strong buy rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $447.57.

AppLovin Stock Performance

The stock's 50 day moving average price is $362.95 and its 200 day moving average price is $337.13. The company has a current ratio of 1.68, a quick ratio of 1.68 and a debt-to-equity ratio of 6.10. The firm has a market cap of $127.93 billion, a PE ratio of 68.21, a P/E/G ratio of 2.16 and a beta of 2.42.

AppLovin (NASDAQ:APP - Get Free Report) last announced its earnings results on Wednesday, May 7th. The company reported $1.67 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.45 by $0.22. The business had revenue of $1.48 billion for the quarter, compared to analyst estimates of $1.38 billion. AppLovin had a return on equity of 224.65% and a net margin of 37.38%. The company's revenue for the quarter was up 40.3% compared to the same quarter last year. During the same period in the previous year, the company earned $0.67 earnings per share. As a group, equities analysts forecast that AppLovin Corporation will post 6.87 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other AppLovin news, Director Herald Y. Chen sold 400,000 shares of AppLovin stock in a transaction that occurred on Wednesday, May 14th. The shares were sold at an average price of $374.61, for a total value of $149,844,000.00. Following the transaction, the director owned 221,209 shares in the company, valued at approximately $82,867,103.49. The trade was a 64.39% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CTO Vasily Shikin sold 34,766 shares of AppLovin stock in a transaction dated Friday, May 23rd. The stock was sold at an average price of $353.64, for a total value of $12,294,648.24. Following the completion of the transaction, the chief technology officer directly owned 70,889 shares in the company, valued at $25,069,185.96. This represents a 32.91% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 1,212,968 shares of company stock valued at $455,062,980. 13.66% of the stock is owned by corporate insiders.

Institutional Trading of AppLovin

Hedge funds have recently modified their holdings of the company. Revolve Wealth Partners LLC bought a new stake in shares of AppLovin during the fourth quarter worth $294,000. HighPoint Advisor Group LLC increased its holdings in AppLovin by 1.7% in the fourth quarter. HighPoint Advisor Group LLC now owns 1,822 shares of the company's stock valued at $590,000 after purchasing an additional 31 shares during the last quarter. National Bank of Canada FI increased its holdings in AppLovin by 4,620.8% in the fourth quarter. National Bank of Canada FI now owns 47,350 shares of the company's stock valued at $15,334,000 after purchasing an additional 46,347 shares during the last quarter. Groupama Asset Managment bought a new stake in shares of AppLovin in the 4th quarter valued at about $1,089,000. Finally, Meeder Advisory Services Inc. increased its stake in AppLovin by 28.8% in the fourth quarter. Meeder Advisory Services Inc. now owns 2,295 shares of the company's stock valued at $743,000 after purchasing an additional 513 shares in the last quarter. 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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