AppLovin (NASDAQ:APP) Trading Down 4.9% - What's Next?

Key Points

• AppLovin's shares dropped 4.9%, trading between $447.37 and $444.06, significantly below its previous close of $467.00.
• Several analysts have upgraded their price targets for AppLovin, with UBS raising it from $450 to $475, and Piper Sandler increasing it to $500, indicating a generally positive outlook.
• The company reported earnings of $2.26 per share, exceeding estimates, though revenue of $1.26 billion fell short of expectations.

Shares of AppLovin Corporation (NASDAQ:APP - Get Free Report) were down 4.9% during trading on Wednesday . The company traded as low as $447.37 and last traded at $444.06. Approximately 2,217,546 shares were traded during trading, a decline of 69% from the average daily volume of 7,170,273 shares. The stock had previously closed at $467.00.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on APP shares. UBS Group boosted their price objective on shares of AppLovin from $450.00 to $475.00 and gave the stock a "buy" rating in a report on Thursday, May 8th. Piper Sandler lifted their target price on shares of AppLovin from $470.00 to $500.00 and gave the stock an "overweight" rating in a research report on Thursday, August 7th. Wells Fargo & Company lifted their target price on shares of AppLovin from $405.00 to $480.00 and gave the stock an "overweight" rating in a research report on Thursday, August 7th. Morgan Stanley lifted their target price on shares of AppLovin from $460.00 to $480.00 and gave the stock an "overweight" rating in a research report on Thursday, August 7th. Finally, Needham & Company LLC restated a "hold" rating on shares of AppLovin in a research report on Thursday, June 26th. One equities research analyst has rated the stock with a sell rating, four have issued a hold rating, eighteen have issued a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, AppLovin presently has an average rating of "Moderate Buy" and a consensus price target of $472.33.

AppLovin Stock Down 4.4%

The company has a debt-to-equity ratio of 3.01, a current ratio of 2.74 and a quick ratio of 2.74. The firm's 50-day moving average is $369.42 and its 200 day moving average is $341.34. The stock has a market cap of $151.06 billion, a price-to-earnings ratio of 63.41, a price-to-earnings-growth ratio of 2.60 and a beta of 2.43.

AppLovin (NASDAQ:APP - Get Free Report) last released its quarterly earnings data on Wednesday, August 6th. The company reported $2.26 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.05 by $0.21. AppLovin had a net margin of 45.72% and a return on equity of 252.67%. The company had revenue of $1.26 billion during the quarter, compared to the consensus estimate of $1.37 billion. During the same period in the previous year, the firm earned $0.89 earnings per share. AppLovin's revenue for the quarter was up 77.1% on a year-over-year basis. Sell-side analysts anticipate that AppLovin Corporation will post 6.87 earnings per share for the current fiscal year.

Insider Activity

In other AppLovin news, Director Herald Y. Chen sold 100,000 shares of the stock in a transaction on Friday, June 6th. The shares were sold at an average price of $419.91, for a total transaction of $41,991,000.00. Following the transaction, the director directly owned 181,929 shares in the company, valued at $76,393,806.39. This represents a 35.47% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Matthew Stumpf sold 9,714 shares of the firm's stock in a transaction dated Friday, June 6th. The stock was sold at an average price of $423.00, for a total transaction of $4,109,022.00. Following the completion of the transaction, the chief financial officer owned 192,421 shares in the company, valued at approximately $81,394,083. The trade was a 4.81% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 400,398 shares of company stock worth $151,712,641 over the last ninety days. Insiders own 13.66% of the company's stock.

Institutional Trading of AppLovin

Large investors have recently modified their holdings of the company. Kingswood Wealth Advisors LLC increased its stake in AppLovin by 5.1% during the 1st quarter. Kingswood Wealth Advisors LLC now owns 1,663 shares of the company's stock valued at $445,000 after buying an additional 80 shares during the period. Wealth Enhancement Advisory Services LLC boosted its holdings in shares of AppLovin by 62.7% in the first quarter. Wealth Enhancement Advisory Services LLC now owns 172,378 shares of the company's stock worth $45,675,000 after buying an additional 66,453 shares during the period. Yousif Capital Management LLC boosted its holdings in shares of AppLovin by 3.5% during the first quarter. Yousif Capital Management LLC now owns 3,544 shares of the company's stock worth $939,000 after purchasing an additional 119 shares during the period. Peak Retirement Planning Inc. acquired a new stake in shares of AppLovin during the fourth quarter worth approximately $969,000. Finally, Assenagon Asset Management S.A. raised its position in AppLovin by 3.0% during the first quarter. Assenagon Asset Management S.A. now owns 4,173 shares of the company's stock valued at $1,106,000 after acquiring an additional 121 shares in the last quarter. Institutional investors and hedge funds 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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