AppLovin (NASDAQ:APP) Stock Price Down 4.2% - Here's Why

AppLovin Corporation (NASDAQ:APP - Get Free Report) dropped 4.2% during mid-day trading on Friday . The company traded as low as $324.68 and last traded at $330.04. Approximately 3,137,597 shares changed hands during mid-day trading, a decline of 49% from the average daily volume of 6,106,191 shares. The stock had previously closed at $344.37.

Wall Street Analysts Forecast Growth

APP has been the subject of a number of analyst reports. HSBC set a $436.00 target price on AppLovin and gave the stock a "buy" rating in a report on Wednesday, April 23rd. The Goldman Sachs Group increased their price objective on AppLovin from $335.00 to $435.00 and gave the company a "neutral" rating in a report on Friday, May 9th. Loop Capital reiterated a "buy" rating and set a $650.00 price objective on shares of AppLovin in a report on Friday, March 28th. Benchmark reissued a "buy" rating and issued a $525.00 target price on shares of AppLovin in a research report on Thursday, May 8th. Finally, Jefferies Financial Group upped their target price on AppLovin from $460.00 to $530.00 and gave the company a "buy" rating in a research report 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 one has issued a strong buy rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $438.10.

AppLovin Trading Down 5.6%

The firm has a market capitalization of $109.95 billion, a PE ratio of 58.53, a PEG ratio of 2.00 and a beta of 2.53. The company's 50-day moving average price is $331.71 and its 200-day moving average price is $334.73. The company has a debt-to-equity ratio of 6.10, a quick ratio of 1.68 and a current ratio of 1.68.

AppLovin (NASDAQ:APP - Get Free Report) last announced its quarterly earnings results on Wednesday, May 7th. The company reported $1.67 earnings per share for the quarter, beating analysts' consensus estimates of $1.45 by $0.22. AppLovin had a net margin of 37.38% and a return on equity of 224.65%. The firm had revenue of $1.48 billion during the quarter, compared to analysts' expectations of $1.38 billion. During the same period in the previous year, the company earned $0.67 earnings per share. AppLovin's quarterly revenue was up 40.3% compared to the same quarter last year. On average, sell-side analysts expect that AppLovin Corporation will post 6.87 earnings per share for the current year.

Insider Buying and Selling at AppLovin

In other news, CFO Matthew Stumpf sold 9,714 shares of the business's stock in a transaction dated 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 transaction, the chief financial officer now directly owns 192,421 shares in the company, valued at $81,394,083. The trade was a 4.81% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Victoria Valenzuela sold 6,585 shares of the business's stock in a transaction dated Monday, May 19th. The stock was sold at an average price of $370.23, for a total transaction of $2,437,964.55. Following the transaction, the insider now owns 357,903 shares in the company, valued at approximately $132,506,427.69. This trade represents a 1.81% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 1,212,968 shares of company stock worth $455,062,980. 13.66% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. First Hawaiian Bank acquired a new position in AppLovin during the first quarter worth about $1,017,000. Inspire Investing LLC purchased a new position in shares of AppLovin during the first quarter valued at approximately $2,120,000. Strs Ohio purchased a new position in AppLovin during the first quarter worth approximately $86,173,000. Advisors Capital Management LLC purchased a new position in AppLovin during the first quarter worth approximately $3,373,000. Finally, McAdam LLC raised its stake in AppLovin by 54.6% during the first quarter. McAdam LLC now owns 1,940 shares of the company's stock worth $514,000 after purchasing an additional 685 shares during the period. 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.

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