AppLovin (NASDAQ:APP) Shares Down 2.7% - Here's Why

AppLovin Co. (NASDAQ:APP - Get Free Report) fell 2.7% during trading on Thursday . The company traded as low as $370.30 and last traded at $373.00. 1,411,912 shares were traded during trading, a decline of 77% from the average session volume of 6,089,506 shares. The stock had previously closed at $383.43.

Analysts Set New Price Targets

APP has been the topic of several research analyst reports. Jefferies Financial Group raised their target price on shares of AppLovin from $460.00 to $530.00 and gave the stock a "buy" rating in a report on Thursday, May 8th. The Goldman Sachs Group lifted their price target on shares of AppLovin from $335.00 to $435.00 and gave the company a "neutral" rating in a research note on Friday, May 9th. Wells Fargo & Company increased their price objective on shares of AppLovin from $386.00 to $405.00 and gave the stock an "overweight" rating in a research note on Thursday, May 8th. Arete Research set a $200.00 target price on shares of AppLovin in a research note on Wednesday, March 5th. Finally, Citigroup reissued a "buy" rating on shares of AppLovin in a research report on Thursday, May 29th. One equities research analyst has rated the stock with a sell rating, three have given a hold rating, seventeen have assigned a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $438.10.

AppLovin Stock Performance

The company has a debt-to-equity ratio of 3.70, a current ratio of 2.41 and a quick ratio of 2.41. The stock's 50-day moving average price is $321.71 and its 200-day moving average price is $333.90. The company has a market cap of $126.55 billion, a P/E ratio of 82.46, a PEG ratio of 3.02 and a beta of 2.53.

AppLovin (NASDAQ:APP - Get Free Report) last posted its quarterly earnings data on Wednesday, May 7th. The company reported $1.67 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.45 by $0.22. AppLovin had a net margin of 33.54% and a return on equity of 188.55%. The firm had revenue of $1.48 billion during the quarter, compared to the consensus estimate of $1.38 billion. During the same quarter in the previous year, the firm posted $0.67 EPS. The business's revenue for the quarter was up 40.3% compared to the same quarter last year. Equities analysts anticipate that AppLovin Co. will post 6.87 EPS for the current year.

Insider Buying and Selling

In related news, Director Dawson Alyssa Harvey sold 513 shares of the stock in a transaction that occurred on Friday, June 6th. The shares were sold at an average price of $420.30, for a total value of $215,613.90. Following the completion of the transaction, the director now owns 3,451 shares of the company's stock, valued at $1,450,455.30. This represents a 12.94% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Craig Scott Billings sold 12,000 shares of the firm's stock in a transaction that occurred on Monday, May 12th. The shares were sold at an average price of $353.12, for a total transaction of $4,237,440.00. Following the completion of the sale, the director now owns 2,987 shares in the company, valued at $1,054,769.44. This represents a 80.07% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 1,211,468 shares of company stock worth $454,489,290. Company insiders own 14.69% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of APP. Fuller & Thaler Asset Management Inc. acquired a new position in AppLovin in the 4th quarter worth about $25,000. Riverview Trust Co increased its stake in shares of AppLovin by 1,640.0% in the fourth quarter. Riverview Trust Co now owns 87 shares of the company's stock valued at $28,000 after buying an additional 82 shares during the period. Tucker Asset Management LLC bought a new position in AppLovin in the 4th quarter valued at approximately $28,000. Hemington Wealth Management boosted its position in AppLovin by 78.4% during the 4th quarter. Hemington Wealth Management now owns 91 shares of the company's stock worth $29,000 after buying an additional 40 shares during the period. Finally, Smithfield Trust Co acquired a new stake in AppLovin during the 4th quarter worth approximately $32,000. 41.85% of the stock is currently owned by institutional investors and hedge funds.

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.