AppLovin (NASDAQ:APP) Trading Down 6.9% on Insider Selling

Key Points

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Shares of AppLovin Corporation (NASDAQ:APP - Get Free Report) were down 6.9% during trading on Tuesday after an insider sold shares in the company. The stock traded as low as $407.52 and last traded at $408.41. Approximately 2,283,053 shares were traded during trading, a decline of 68% from the average daily volume of 7,096,576 shares. The stock had previously closed at $438.54.

Specifically, Director Herald Y. Chen sold 200,000 shares of the business's stock in a transaction on Thursday, August 14th. The stock was sold at an average price of $432.49, for a total value of $86,498,000.00. Following the sale, the director directly owned 181,929 shares of the company's stock, valued at approximately $78,682,473.21. The trade was a 52.37% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Herald Y. Chen sold 200 shares of the business's stock in a transaction on Friday, August 15th. The stock was sold at an average price of $424.19, for a total value of $84,838.00. Following the completion of the sale, the director directly owned 189,800 shares in the company, valued at $80,511,262. This trade represents a 0.11% decrease in their ownership of the stock. The disclosure for this sale can be found here. In other news, Director Herald Y. Chen sold 50,000 shares of the business's stock in a transaction on Friday, August 15th. The stock was sold at an average price of $436.61, for a total value of $21,830,500.00. Following the completion of the transaction, the director owned 181,929 shares in the company, valued at $79,432,020.69. The trade was a 21.56% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on the company. Wall Street Zen cut AppLovin from a "buy" rating to a "hold" rating in a research note on Saturday, August 9th. UBS Group boosted their price target on AppLovin from $450.00 to $475.00 and gave the stock a "buy" rating in a research note on Thursday, May 8th. Scotiabank boosted their price target on AppLovin from $430.00 to $450.00 and gave the stock a "sector outperform" rating in a research note on Thursday, August 7th. HSBC set a $436.00 price target on AppLovin and gave the stock a "buy" rating in a research note on Wednesday, April 23rd. Finally, Wells Fargo & Company upped their price objective on AppLovin from $405.00 to $480.00 and gave the company an "overweight" rating in a research report on Thursday, August 7th. Two research analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $472.33.

AppLovin Price Performance

The company has a current ratio of 2.74, a quick ratio of 2.74 and a debt-to-equity ratio of 3.01. The firm has a market cap of $138.87 billion, a P/E ratio of 58.09, a PEG ratio of 2.45 and a beta of 2.43. The firm has a 50-day simple moving average of $371.92 and a 200-day simple moving average of $343.39.

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

Institutional Trading of AppLovin

Institutional investors have recently made changes to their positions in the business. Fuller & Thaler Asset Management Inc. acquired a new stake in shares of AppLovin in the 4th quarter worth $25,000. Atala Financial Inc acquired a new stake in shares of AppLovin in the 1st quarter worth $26,000. Hilltop National Bank acquired a new stake in shares of AppLovin in the 2nd quarter worth $26,000. LFA Lugano Financial Advisors SA acquired a new stake in shares of AppLovin in the 2nd quarter worth $26,000. Finally, Alpine Bank Wealth Management acquired a new stake in shares of AppLovin in the 1st quarter worth $27,000. 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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