AppLovin (NASDAQ:APP) Stock Price Down 6.9% - Here's What Happened

AppLovin Co. (NASDAQ:APP - Get Free Report)'s share price dropped 6.9% during mid-day trading on Wednesday . The stock traded as low as $246.00 and last traded at $269.07. Approximately 4,574,056 shares traded hands during mid-day trading, a decline of 22% from the average daily volume of 5,886,599 shares. The stock had previously closed at $288.88.

Analyst Ratings Changes

A number of equities research analysts have recently commented on the company. Bank of America increased their price objective on AppLovin from $375.00 to $580.00 and gave the company a "buy" rating in a research report on Thursday, February 13th. UBS Group lowered their target price on AppLovin from $630.00 to $450.00 and set a "buy" rating on the stock in a research note on Friday, April 11th. The Goldman Sachs Group cut their target price on shares of AppLovin from $500.00 to $335.00 and set a "neutral" rating for the company in a research report on Monday, April 14th. Wells Fargo & Company reduced their price objective on AppLovin from $538.00 to $386.00 and set an "overweight" rating for the company in a research report on Tuesday, April 8th. Finally, Needham & Company LLC reaffirmed a "hold" rating on shares of AppLovin in a research report on Monday, April 21st. One equities research analyst has rated the stock with a sell rating, three have assigned a hold rating, seventeen have given a buy rating and one has issued a strong buy rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $415.15.

AppLovin Stock Down 6.9 %

The company has a market capitalization of $91.39 billion, a P/E ratio of 59.22, a P/E/G ratio of 3.02 and a beta of 2.39. The business's fifty day moving average price is $283.75 and its 200 day moving average price is $303.01. The company has a current ratio of 2.41, a quick ratio of 2.41 and a debt-to-equity ratio of 3.70.

AppLovin (NASDAQ:APP - Get Free Report) last announced its quarterly earnings results on Wednesday, February 12th. The company reported $1.73 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.12 by $0.61. AppLovin had a net margin of 33.54% and a return on equity of 188.55%. As a group, equities research analysts predict that AppLovin Co. will post 6.87 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Arash Adam Foroughi sold 45,000 shares of the business's stock in a transaction that occurred on Friday, February 21st. The stock was sold at an average price of $422.21, for a total value of $18,999,450.00. Following the completion of the transaction, the chief executive officer now directly owns 2,914,492 shares in the company, valued at approximately $1,230,527,667.32. The trade was a 1.52 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CTO Vasily Shikin sold 17,500 shares of the stock in a transaction on Monday, March 10th. The stock was sold at an average price of $241.65, for a total transaction of $4,228,875.00. Following the sale, the chief technology officer now directly owns 88,389 shares of the company's stock, valued at $21,359,201.85. This represents a 16.53 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 306,900 shares of company stock valued at $106,401,841 in the last 90 days. 14.69% of the stock is currently owned by insiders.

Institutional Investors Weigh In On AppLovin

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. FMR LLC boosted its holdings in shares of AppLovin by 75.5% during the fourth quarter. FMR LLC now owns 13,851,122 shares of the company's stock worth $4,485,409,000 after acquiring an additional 5,957,885 shares during the period. SVB Wealth LLC acquired a new position in shares of AppLovin during the fourth quarter worth $1,781,922,000. Baillie Gifford & Co. grew its position in shares of AppLovin by 5,421.4% in the 4th quarter. Baillie Gifford & Co. now owns 4,084,496 shares of the company's stock valued at $1,322,682,000 after buying an additional 4,010,520 shares during the last quarter. Norges Bank bought a new position in AppLovin during the 4th quarter worth approximately $828,138,000. Finally, Arrowstreet Capital Limited Partnership raised its stake in AppLovin by 457.2% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 2,893,148 shares of the company's stock worth $936,888,000 after buying an additional 2,373,885 shares during the last quarter. 41.85% of the stock is currently owned by institutional investors and hedge funds.

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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