AppLovin (NASDAQ:APP) Trading Down 2.9% - Here's What Happened

Key Points

• AppLovin shares fell 2.9% on Thursday, reaching a low of $674.40 before closing at $683.64, with a trading volume down 19% from average levels.
• Analysts have shown a positive outlook for AppLovin, with price targets ranging significantly higher, including Bank of America's increase to $860.00 and Jefferies raising theirs to $615.00.
• Despite the decline in stock price, AppLovin reported an EPS of $2.26, beating consensus estimates, although revenue for the quarter came in lower than expected at $1.26 billion.

AppLovin Corporation (NASDAQ:APP - Get Free Report) shares dropped 2.9% on Thursday . The company traded as low as $674.40 and last traded at $683.64. Approximately 6,059,249 shares were traded during mid-day trading, a decline of 19% from the average daily volume of 7,455,466 shares. The stock had previously closed at $704.09.

Analyst Upgrades and Downgrades

APP has been the topic of a number of research analyst reports. JPMorgan Chase & Co. increased their price target on AppLovin from $400.00 to $425.00 and gave the company a "neutral" rating in a research note on Thursday, August 7th. Jefferies Financial Group increased their price objective on AppLovin from $560.00 to $615.00 and gave the stock a "buy" rating in a research report on Friday, September 5th. Bank of America increased their price objective on AppLovin from $580.00 to $860.00 and gave the stock a "buy" rating in a research report on Wednesday. BTIG Research increased their price objective on AppLovin from $547.00 to $664.00 and gave the stock a "buy" rating in a research report on Monday, September 15th. Finally, Scotiabank reiterated an "outperform" rating on shares of AppLovin in a research report on Thursday, August 28th. Two analysts have rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $578.86.

AppLovin Stock Down 2.9%

The firm has a 50 day moving average of $501.73 and a two-hundred day moving average of $385.43. The firm has a market capitalization of $231.24 billion, a price-to-earnings ratio of 97.11, a price-to-earnings-growth ratio of 3.94 and a beta of 2.52. The company has a quick ratio of 2.74, a current 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 EPS for the quarter, beating the consensus estimate of $2.05 by $0.21. The firm 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%.The business's quarterly revenue was up 77.1% on a year-over-year basis. During the same period last year, the company earned $0.89 earnings per share. As a group, sell-side analysts anticipate that AppLovin Corporation will post 6.87 EPS for the current fiscal year.

Insider Activity at AppLovin

In related news, Director Eduardo Vivas sold 125,000 shares of AppLovin stock in a transaction that occurred on Tuesday, August 12th. The stock was sold at an average price of $466.00, for a total transaction of $58,250,000.00. Following the transaction, the director owned 7,283,292 shares of the company's stock, valued at $3,394,014,072. The trade was a 1.69% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, insider Victoria Valenzuela sold 35,000 shares of AppLovin stock in a transaction that occurred on Thursday, September 4th. The shares were sold at an average price of $502.23, for a total value of $17,578,050.00. Following the transaction, the insider directly owned 269,955 shares in the company, valued at approximately $135,579,499.65. The trade was a 11.48% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 1,156,788 shares of company stock valued at $514,863,333 over the last 90 days. Corporate insiders own 13.66% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. boosted its position in AppLovin by 0.4% in the second quarter. Vanguard Group Inc. now owns 17,902,795 shares of the company's stock worth $6,267,410,000 after purchasing an additional 72,120 shares during the last quarter. Price T Rowe Associates Inc. MD boosted its position in AppLovin by 36.7% in the first quarter. Price T Rowe Associates Inc. MD now owns 6,588,483 shares of the company's stock worth $1,745,752,000 after purchasing an additional 1,769,400 shares during the last quarter. State Street Corp boosted its position in AppLovin by 2.4% in the second quarter. State Street Corp now owns 5,615,415 shares of the company's stock worth $1,965,844,000 after purchasing an additional 133,402 shares during the last quarter. Baillie Gifford & Co. lifted its position in shares of AppLovin by 29.0% during the 1st quarter. Baillie Gifford & Co. now owns 5,270,355 shares of the company's stock valued at $1,396,486,000 after buying an additional 1,185,859 shares during the last quarter. Finally, Invesco Ltd. lifted its position in shares of AppLovin by 32.9% during the 1st quarter. Invesco Ltd. now owns 4,011,306 shares of the company's stock valued at $1,062,876,000 after buying an additional 992,316 shares during the last quarter. 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.

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