AppLovin (NASDAQ:APP) Trading Down 1.1% - Should You Sell?

Key Points

• AppLovin's share price dropped by 1.1% to around $599.31, with trading volume significantly declining by 56% compared to its average session.
• Analysts have mixed views on the stock, with one firm raising the price target to $740.00, while Zacks Research downgraded its rating to "hold."
• Insider activity showed significant sales, with directors selling over 1.1 million shares valued at approximately $514.9 million in the past three months.

AppLovin Corporation (NASDAQ:APP - Get Free Report)'s share price fell 1.1% during mid-day trading on Friday . The stock traded as low as $589.20 and last traded at $599.31. 3,277,921 shares were traded during mid-day trading, a decline of 56% from the average session volume of 7,378,229 shares. The stock had previously closed at $605.68.

Analyst Upgrades and Downgrades

Several research firms have recently issued reports on APP. Piper Sandler upped their price objective on AppLovin from $500.00 to $740.00 and gave the company an "overweight" rating in a research note on Friday, September 26th. The Goldman Sachs Group reiterated a "neutral" rating and issued a $630.00 target price on shares of AppLovin in a report on Tuesday. Scotiabank reiterated an "outperform" rating on shares of AppLovin in a report on Thursday, August 28th. Zacks Research lowered AppLovin from a "strong-buy" rating to a "hold" rating in a research report on Monday, October 6th. Finally, Benchmark increased their price target on AppLovin from $525.00 to $640.00 and gave the company a "buy" rating in a research report on Monday, September 15th. One research analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, AppLovin has an average rating of "Moderate Buy" and a consensus price target of $600.59.

AppLovin Trading Down 1.1%

The stock has a 50-day moving average price of $553.38 and a 200-day moving average price of $409.27. The stock has a market cap of $202.72 billion, a P/E ratio of 85.13, a P/E/G ratio of 3.27 and a beta of 2.53. 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 released its earnings results on Wednesday, August 6th. The company reported $2.26 earnings per share for the quarter, topping analysts' consensus estimates of $2.05 by $0.21. The company had revenue of $1.26 billion during the quarter, compared to the consensus estimate of $1.37 billion. AppLovin had a return on equity of 252.67% and a net margin of 45.72%.AppLovin's quarterly revenue was up 77.1% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.89 EPS. On average, equities research analysts expect that AppLovin Corporation will post 6.87 EPS for the current year.

Insider Activity

In related news, Director Eduardo Vivas sold 125,000 shares of the company's stock in a transaction 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 sale, the director directly owned 7,283,292 shares of the company's stock, valued at $3,394,014,072. This represents a 1.69% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CTO Vasily Shikin sold 30,000 shares of the company's stock in a transaction on Friday, August 22nd. The stock was sold at an average price of $437.57, for a total value of $13,127,100.00. Following the completion of the sale, the chief technology officer directly owned 3,360,104 shares in the company, valued at approximately $1,470,280,707.28. The trade was a 0.88% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 1,156,788 shares of company stock valued at $514,863,333. 13.66% of the stock is owned by insiders.

Institutional Investors Weigh In On AppLovin

Several hedge funds have recently added to or reduced their stakes in the stock. Atala Financial Inc bought a new position in AppLovin in the first quarter valued at about $26,000. Hilltop National Bank purchased a new position in shares of AppLovin in the 2nd quarter worth approximately $26,000. LFA Lugano Financial Advisors SA purchased a new position in AppLovin during the 2nd quarter valued at $26,000. Alpine Bank Wealth Management purchased a new position in AppLovin during the 1st quarter valued at $27,000. Finally, ORG Wealth Partners LLC purchased a new position in AppLovin during the 1st quarter valued at $29,000. 41.85% of the stock is owned by institutional investors.

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.

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.