AppLovin (NASDAQ:APP) Stock Price Down 4.7% - Here's What Happened

Key Points

• AppLovin's stock price decreased by 4.7% on Thursday, reaching a low of $591.50 before trading at $600.32, with a significant drop in trading volume compared to the average.
• Several analysts raised their price targets for AppLovin, with Bank of America setting a target of $860.00 and maintaining a "buy" rating.
• Recently reported earnings showed AppLovin beat estimates with $2.26 EPS, but revenue of $1.26 billion fell short of the $1.37 billion expectation.

AppLovin Corporation (NASDAQ:APP - Get Free Report)'s stock price dropped 4.7% on Thursday . The company traded as low as $591.50 and last traded at $600.32. Approximately 6,264,758 shares changed hands during trading, a decline of 16% from the average daily volume of 7,477,167 shares. The stock had previously closed at $629.70.

Wall Street Analyst Weigh In

APP has been the topic of a number of research reports. Bank of America increased their target price on shares of AppLovin from $580.00 to $860.00 and gave the stock a "buy" rating in a report on Wednesday, October 1st. Wedbush increased their target price on shares of AppLovin from $725.00 to $745.00 and gave the stock an "outperform" rating in a report on Monday. Jefferies Financial Group upped their price target on shares of AppLovin from $560.00 to $615.00 and gave the stock a "buy" rating in a research report on Friday, September 5th. Scotiabank restated an "outperform" rating on shares of AppLovin in a research report on Thursday, August 28th. Finally, Piper Sandler upped their price target on shares of AppLovin from $500.00 to $740.00 and gave the stock an "overweight" rating in a research report on Friday, September 26th. One research analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating, four have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $597.38.

AppLovin Stock Performance

The company has a current ratio of 2.74, a quick ratio of 2.74 and a debt-to-equity ratio of 3.01. The company's 50-day moving average price is $533.82 and its two-hundred day moving average price is $399.03. The company has a market cap of $203.06 billion, a P/E ratio of 85.27, a price-to-earnings-growth ratio of 3.45 and a beta of 2.53.

AppLovin (NASDAQ:APP - Get Free Report) last posted its quarterly earnings data 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 net margin of 45.72% and a return on equity of 252.67%. The company had revenue of $1.26 billion during the quarter, compared to analyst estimates of $1.37 billion. During the same quarter last year, the firm posted $0.89 EPS. The business's revenue for the quarter was up 77.1% on a year-over-year basis. As a group, equities analysts forecast that AppLovin Corporation will post 6.87 earnings per share for the current year.

Insider Activity

In other AppLovin news, Director Dawson Alyssa Harvey sold 350 shares of the company's stock in a transaction dated Friday, September 5th. The shares were sold at an average price of $487.97, for a total transaction of $170,789.50. Following the completion of the sale, the director directly owned 3,150 shares of the company's stock, valued at approximately $1,537,105.50. This represents a 10.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Victoria Valenzuela sold 35,000 shares of the company's stock in a transaction dated Thursday, September 4th. The shares were sold at an average price of $502.23, for a total transaction of $17,578,050.00. Following the sale, the insider directly owned 269,955 shares of the company's stock, valued at $135,579,499.65. This represents a 11.48% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 1,156,788 shares of company stock valued at $514,863,333 over the last ninety days. Corporate insiders own 13.66% of the company's stock.

Institutional Trading of AppLovin

Hedge funds have recently bought and sold shares of the company. Atala Financial Inc purchased a new stake in shares of AppLovin in the first quarter worth approximately $26,000. Hilltop National Bank purchased a new stake in shares of AppLovin in the second quarter worth approximately $26,000. LFA Lugano Financial Advisors SA purchased a new stake in shares of AppLovin in the second quarter worth approximately $26,000. Alpine Bank Wealth Management purchased a new stake in shares of AppLovin in the first quarter worth approximately $27,000. Finally, ORG Wealth Partners LLC purchased a new stake in shares of AppLovin in the first quarter worth approximately $29,000. 41.85% of the stock is owned by hedge funds and other institutional investors.

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 and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.