AppLovin (NASDAQ:APP) Trading Down 3.7% - What's Next?

AppLovin Corporation (NASDAQ:APP - Get Free Report) fell 3.7% on Tuesday . The company traded as low as $343.00 and last traded at $352.62. 1,899,082 shares changed hands during mid-day trading, a decline of 70% from the average session volume of 6,265,811 shares. The stock had previously closed at $366.17.

Wall Street Analyst Weigh In

APP has been the topic of a number of research analyst reports. Morgan Stanley raised their target price on shares of AppLovin from $420.00 to $460.00 and gave the company an "overweight" rating in a research report on Monday, June 9th. HSBC set a $436.00 price objective on shares of AppLovin and gave the company a "buy" rating in a report on Wednesday, April 23rd. Citigroup restated a "buy" rating on shares of AppLovin in a report on Thursday, May 29th. FBN Securities began coverage on shares of AppLovin in a research note on Friday, March 28th. They issued an "outperform" rating and a $385.00 target price on the stock. Finally, Oppenheimer reissued an "outperform" rating and set a $500.00 target price (down previously from $560.00) on shares of AppLovin in a report on Thursday, May 8th. One analyst has rated the stock with a sell rating, four have given a hold rating, sixteen have issued a buy rating and three have assigned a strong buy rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $438.43.

AppLovin Trading Down 4.3%

The business has a fifty day simple moving average of $362.51 and a 200-day simple moving average of $335.12. The firm has a market cap of $118.53 billion, a price-to-earnings ratio of 63.22, a PEG ratio of 2.16 and a beta of 2.42. The company has a debt-to-equity ratio of 6.10, a quick ratio of 1.68 and a current ratio of 1.68.

AppLovin (NASDAQ:APP - Get Free Report) last announced its quarterly earnings results on Wednesday, May 7th. The company reported $1.67 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.45 by $0.22. AppLovin had a return on equity of 224.65% and a net margin of 37.38%. The business had revenue of $1.48 billion for the quarter, compared to analyst estimates of $1.38 billion. During the same quarter in the prior year, the company earned $0.67 earnings per share. The company's quarterly revenue was up 40.3% 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 fiscal year.

Insider Transactions at AppLovin

In other news, CEO Arash Adam Foroughi sold 100,000 shares of the business's stock in a transaction dated Wednesday, May 21st. The stock was sold at an average price of $367.51, for a total value of $36,751,000.00. Following the transaction, the chief executive officer directly owned 2,760,363 shares in the company, valued at $1,014,461,006.13. The trade was a 3.50% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CTO Vasily Shikin sold 34,766 shares of the business's stock in a transaction dated Friday, May 23rd. The shares were sold at an average price of $353.64, for a total value of $12,294,648.24. Following the completion of the transaction, the chief technology officer owned 70,889 shares in the company, valued at $25,069,185.96. The trade was a 32.91% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 1,212,968 shares of company stock valued at $455,062,980 over the last 90 days. 13.66% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of APP. Fuller & Thaler Asset Management Inc. acquired a new stake in AppLovin during the 4th quarter worth about $25,000. Atala Financial Inc acquired a new stake in AppLovin during the 1st quarter worth about $26,000. Hilltop National Bank acquired a new stake in AppLovin during the 2nd quarter worth about $26,000. Alpine Bank Wealth Management acquired a new stake in shares of AppLovin during the 1st quarter valued at about $27,000. Finally, Tucker Asset Management LLC acquired a new stake in shares of AppLovin during the 4th quarter valued at about $28,000. Institutional investors own 41.85% of the company's stock.

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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