AppLovin (NASDAQ:APP) Stock Price Down 3.7% - What's Next?

Key Points

• AppLovin's stock price fell 3.7% during trading, closing at $608.68, with trading volume 49% below its average.
• Wall Street analysts maintain a generally positive outlook, with a consensus rating of Moderate Buy and target prices ranging from $630.00 to $750.00.
• Insider transactions saw significant selling, including a 125,000 shares sale by Director Eduardo Vivas, indicating possible shifts in insider confidence.

AppLovin Corporation (NASDAQ:APP - Get Free Report) dropped 3.7% during trading on Tuesday . The company traded as low as $607.93 and last traded at $608.68. Approximately 3,652,969 shares changed hands during mid-day trading, a decline of 49% from the average daily volume of 7,174,975 shares. The stock had previously closed at $632.14.

Wall Street Analysts Forecast Growth

APP has been the topic of a number of recent research reports. The Goldman Sachs Group restated a "neutral" rating and issued a $630.00 target price on shares of AppLovin in a research note on Tuesday, October 14th. Phillip Securities upgraded AppLovin to a "moderate buy" rating in a research note on Monday, September 29th. Wells Fargo & Company boosted their target price on AppLovin from $491.00 to $633.00 and gave the company an "overweight" rating in a research note on Tuesday, October 14th. Royal Bank Of Canada initiated coverage on AppLovin in a research note on Monday, October 13th. They issued an "outperform" rating and a $700.00 target price on the stock. Finally, Morgan Stanley boosted their target price on AppLovin from $480.00 to $750.00 and gave the company an "overweight" rating in a research note on Monday, September 29th. One analyst has rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, AppLovin currently has a consensus rating of "Moderate Buy" and a consensus target price of $606.39.

AppLovin Stock Performance

The firm has a 50 day moving average of $593.42 and a two-hundred day moving average of $442.65. The stock has a market cap of $205.89 billion, a P/E ratio of 86.46, a P/E/G ratio of 3.46 and a beta of 2.50. 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. AppLovin had a return on equity of 252.67% and a net margin of 45.72%.The firm had revenue of $1.26 billion during the quarter, compared to the consensus estimate of $1.37 billion. During the same quarter in the prior year, the company earned $0.89 EPS. The firm's revenue for the quarter was up 77.1% compared to the same quarter last year. On average, research analysts predict that AppLovin Corporation will post 6.87 EPS for the current fiscal year.

Insider Transactions at AppLovin

In other AppLovin news, Director Eduardo Vivas sold 125,000 shares of the company's stock in a transaction that occurred on Tuesday, August 12th. The stock was sold at an average price of $466.00, for a total value of $58,250,000.00. Following the completion of the transaction, the director owned 7,283,292 shares of the company's stock, valued at $3,394,014,072. This represents a 1.69% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Arash Adam Foroughi sold 90,000 shares of the company's stock in a transaction that occurred on Thursday, August 21st. The shares were sold at an average price of $421.04, for a total value of $37,893,600.00. Following the completion of the transaction, the chief executive officer directly owned 2,620,054 shares of the company's stock, valued at approximately $1,103,147,536.16. This trade represents a 3.32% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 1,156,788 shares of company stock worth $514,863,333. 13.66% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On AppLovin

Several large investors have recently added to or reduced their stakes in the company. Ashton Thomas Private Wealth LLC acquired a new position in AppLovin in the 3rd quarter valued at approximately $536,000. Premier Path Wealth Partners LLC raised its holdings in AppLovin by 68.4% in the 3rd quarter. Premier Path Wealth Partners LLC now owns 963 shares of the company's stock valued at $692,000 after acquiring an additional 391 shares in the last quarter. Penserra Capital Management LLC raised its holdings in AppLovin by 125.3% in the 3rd quarter. Penserra Capital Management LLC now owns 14,982 shares of the company's stock valued at $10,764,000 after acquiring an additional 8,332 shares in the last quarter. Westside Investment Management Inc. grew its stake in shares of AppLovin by 60.5% in the 3rd quarter. Westside Investment Management Inc. now owns 61 shares of the company's stock valued at $43,000 after purchasing an additional 23 shares during the period. Finally, Hartford Investment Management Co. acquired a new position in shares of AppLovin in the 3rd quarter worth approximately $11,397,000. 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.