AppLovin (NASDAQ:APP) Stock Price Down 4.3% - Here's What Happened

AppLovin Corporation (NASDAQ:APP - Get Free Report) was down 4.3% on Tuesday . The stock traded as low as $338.83 and last traded at $335.09. Approximately 1,860,215 shares traded hands during trading, a decline of 70% from the average daily volume of 6,191,364 shares. The stock had previously closed at $350.08.

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on APP. Jefferies Financial Group increased their target price on AppLovin from $460.00 to $530.00 and gave the company a "buy" rating in a report on Thursday, May 8th. Citigroup reissued a "buy" rating on shares of AppLovin in a research note on Thursday, May 29th. Wells Fargo & Company raised their price objective on AppLovin from $386.00 to $405.00 and gave the stock an "overweight" rating in a research report on Thursday, May 8th. Piper Sandler reiterated an "overweight" rating and issued a $470.00 target price (up previously from $455.00) on shares of AppLovin in a report on Thursday, June 26th. Finally, Loop Capital reissued a "buy" rating and issued a $650.00 price target on shares of AppLovin in a research report on Friday, March 28th. One research analyst has rated the stock with a sell rating, three have assigned a hold rating, seventeen have issued a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $438.85.

AppLovin Stock Down 4.3%

The business has a 50-day simple moving average of $345.98 and a two-hundred day simple moving average of $333.86. The company has a quick ratio of 1.68, a current ratio of 1.68 and a debt-to-equity ratio of 6.10. The company has a market cap of $113.43 billion, a price-to-earnings ratio of 60.62, a PEG ratio of 1.99 and a beta of 2.53.

AppLovin (NASDAQ:APP - Get Free Report) last released its quarterly earnings results on Wednesday, May 7th. The company reported $1.67 EPS for the quarter, beating analysts' consensus estimates of $1.45 by $0.22. The company had revenue of $1.48 billion for the quarter, compared to analyst estimates of $1.38 billion. AppLovin had a net margin of 37.38% and a return on equity of 224.65%. The company's quarterly revenue was up 40.3% compared to the same quarter last year. During the same quarter last year, the firm posted $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.

Insider Activity at AppLovin

In related news, CFO Matthew Stumpf sold 9,714 shares of the business's stock in a transaction dated Friday, June 6th. The stock was sold at an average price of $423.00, for a total transaction of $4,109,022.00. Following the completion of the transaction, the chief financial officer owned 192,421 shares of the company's stock, valued at approximately $81,394,083. The trade was a 4.81% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CTO Vasily Shikin sold 34,766 shares of the firm's stock in a transaction that occurred on Friday, May 23rd. The shares were sold at an average price of $353.64, for a total value of $12,294,648.24. Following the completion of the sale, the chief technology officer directly owned 70,889 shares in the company, valued at $25,069,185.96. This trade represents a 32.91% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 1,212,968 shares of company stock valued at $455,062,980. 13.66% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On AppLovin

Institutional investors and hedge funds have recently bought and sold shares of the stock. FMR LLC lifted its stake in shares of AppLovin by 75.5% in the fourth quarter. FMR LLC now owns 13,851,122 shares of the company's stock valued at $4,485,409,000 after buying an additional 5,957,885 shares during the period. Dynasty Wealth Management LLC raised its holdings in AppLovin by 117,664.4% in the 1st quarter. Dynasty Wealth Management LLC now owns 2,702,694 shares of the company's stock valued at $716,133,000 after acquiring an additional 2,700,399 shares in the last quarter. Norges Bank acquired a new position in AppLovin in the 4th quarter valued at approximately $828,138,000. Arrowstreet Capital Limited Partnership lifted its position in shares of AppLovin by 457.2% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 2,893,148 shares of the company's stock worth $936,888,000 after acquiring an additional 2,373,885 shares during the period. Finally, Alliancebernstein L.P. grew its holdings in shares of AppLovin by 193.6% during the 4th quarter. Alliancebernstein L.P. now owns 2,725,101 shares of the company's stock worth $882,469,000 after purchasing an additional 1,797,027 shares in the last quarter. Institutional investors own 41.85% of the company's stock.

About AppLovin

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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