AppLovin (NASDAQ:APP) Trading Down 1.1% - What's Next?

Key Points

• AppLovin's stock (NASDAQ:APP) declined by 1.1% during trading on Tuesday, closing at $473.32, with a substantial decrease in trading volume of about 73% from its average.
• Recent analyst ratings show a consensus of "Moderate Buy" for AppLovin, with price targets ranging from $460 to $491 from various firms.
• The company reported earnings of $2.26 EPS for the last quarter, surpassing analyst expectations, but revenue of $1.26 billion fell short of estimates at $1.37 billion.

AppLovin Corporation (NASDAQ:APP - Get Free Report)'s stock price was down 1.1% during trading on Tuesday . The stock traded as low as $452.25 and last traded at $473.32. Approximately 1,908,371 shares traded hands during trading, a decline of 73% from the average daily volume of 6,994,691 shares. The stock had previously closed at $478.59.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on APP shares. Needham & Company LLC reiterated a "hold" rating on shares of AppLovin in a report on Tuesday, August 26th. Zacks Research raised AppLovin to a "strong-buy" rating in a research report on Friday, August 8th. Morgan Stanley boosted their target price on shares of AppLovin from $460.00 to $480.00 and gave the company an "overweight" rating in a research note on Thursday, August 7th. Wells Fargo & Company raised their price target on AppLovin from $480.00 to $491.00 and gave the company an "overweight" rating in a report on Thursday, August 21st. Finally, UBS Group lifted their price objective on AppLovin from $450.00 to $475.00 and gave the company a "buy" rating in a report on Thursday, May 8th. Two research analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $478.81.

AppLovin Stock Down 0.4%

The stock's fifty day moving average is $390.26 and its two-hundred day moving average is $347.01. The company has a market capitalization of $161.30 billion, a PE ratio of 67.72, a P/E/G ratio of 2.68 and a beta of 2.44. The company has a current ratio of 2.74, a quick ratio of 2.74 and a debt-to-equity ratio of 3.01.

AppLovin (NASDAQ:APP - Get Free Report) last posted its earnings results on Wednesday, August 6th. The company reported $2.26 earnings per share for the quarter, beating analysts' consensus estimates of $2.05 by $0.21. AppLovin had a return on equity of 252.67% and a net margin of 45.72%.The business had revenue of $1.26 billion during the quarter, compared to analyst estimates of $1.37 billion. During the same quarter in the previous year, the firm earned $0.89 EPS. The company's quarterly revenue was up 77.1% compared to the same quarter last year. As a group, analysts predict that AppLovin Corporation will post 6.87 EPS for the current year.

Insiders Place Their Bets

In related news, insider Victoria Valenzuela sold 15,000 shares of AppLovin stock in a transaction on Monday, August 25th. The shares were sold at an average price of $450.00, for a total transaction of $6,750,000.00. Following the transaction, the insider owned 304,955 shares in the company, valued at approximately $137,229,750. The trade was a 4.69% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CTO Vasily Shikin sold 17,564 shares of the stock in a transaction on Friday, August 22nd. The shares were sold at an average price of $437.48, for a total value of $7,683,898.72. Following the sale, the chief technology officer owned 53,389 shares in the company, valued at $23,356,619.72. The trade was a 24.75% decrease in their position. The disclosure for this sale can be found here. Insiders sold 1,236,152 shares of company stock worth $545,240,378 over the last three months. Company insiders own 13.66% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Atala Financial Inc purchased a new stake in shares of AppLovin in the first quarter valued at about $26,000. Hilltop National Bank purchased a new stake in AppLovin in the 2nd quarter worth approximately $26,000. LFA Lugano Financial Advisors SA acquired a new position in AppLovin during the second quarter valued at approximately $26,000. Alpine Bank Wealth Management acquired a new position in AppLovin during the 1st quarter worth $27,000. Finally, ORG Wealth Partners LLC acquired a new position in AppLovin in the first quarter valued at approximately $29,000. Hedge funds and other institutional investors own 41.85% of the company's stock.

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.