Clear Street Group Inc. Trims Stake in AppLovin Corporation $APP

Key Points

• Clear Street Group Inc. cut its AppLovin stake by 46.8% in the fourth quarter, selling 39,593 shares and ending the period with 44,986 shares worth about $30.3 million.
• AppLovin reported strong first-quarter results, with EPS of $3.56 beating estimates and revenue of $1.84 billion topping expectations; revenue rose 58.9% year over year.
• Insider selling has been notable, including recent sales by CEO Arash Adam Foroughi, Director Maynard G. Webb Jr., and CTO Vasily Shikin, even as analysts remain largely positive with a consensus Moderate Buy rating.

Clear Street Group Inc. reduced its stake in shares of AppLovin Corporation (NASDAQ:APP - Free Report) by 46.8% in the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 44,986 shares of the company's stock after selling 39,593 shares during the quarter. Clear Street Group Inc.'s holdings in AppLovin were worth $30,312,000 at the end of the most recent reporting period.

Several other institutional investors also recently bought and sold shares of the stock. Element Wealth LLC raised its position in AppLovin by 138.4% during the fourth quarter. Element Wealth LLC now owns 820 shares of the company's stock valued at $552,000 after acquiring an additional 476 shares in the last quarter. Blue Jean Financial LLC acquired a new stake in AppLovin in the fourth quarter valued at approximately $3,131,000. Adams Diversified Equity Fund Inc. acquired a new stake in AppLovin in the fourth quarter valued at approximately $4,312,000. Atlas Capital Advisors Inc. acquired a new stake in AppLovin in the fourth quarter valued at approximately $114,000. Finally, Aptus Capital Advisors LLC grew its holdings in AppLovin by 59.0% in the fourth quarter. Aptus Capital Advisors LLC now owns 33,471 shares of the company's stock valued at $22,553,000 after purchasing an additional 12,426 shares during the period. 41.85% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting AppLovin

Here are the key news stories impacting AppLovin this week:

• Negative Sentiment: CEO Arash Adam Foroughi sold additional AppLovin shares on June 10, 11, and 12, including several transactions worth millions of dollars, which may pressure investor confidence in the near term. SEC filing
• Neutral Sentiment: Recent commentary from analysts and financial media remained constructive overall, with one piece arguing AppLovin’s selloff looks detached from fundamentals and highlighting strong Q1 revenue, EBITDA, and free cash flow growth. Article
• Neutral Sentiment: Separately, coverage noted that brokers still generally view AppLovin as an attractive stock, though these recommendations are often considered lagging indicators and may not move the shares much on their own. Article

Analyst Ratings Changes

Several analysts have commented on the company. Morgan Stanley reissued an "overweight" rating on shares of AppLovin in a report on Wednesday, May 27th. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and issued a $660.00 price objective on shares of AppLovin in a report on Thursday, May 7th. Citigroup reissued a "buy" rating and issued a $710.00 price objective on shares of AppLovin in a report on Monday, June 1st. UBS Group dropped their price objective on AppLovin from $740.00 to $716.00 and set a "buy" rating on the stock in a report on Thursday, May 7th. Finally, Benchmark reissued a "buy" rating on shares of AppLovin in a report on Wednesday. One research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat, AppLovin has an average rating of "Moderate Buy" and a consensus target price of $669.62.

AppLovin Stock Performance

Shares of NASDAQ:APP opened at $496.77 on Friday. The company has a debt-to-equity ratio of 1.49, a current ratio of 3.24 and a quick ratio of 3.24. The business's 50 day moving average price is $482.88 and its 200-day moving average price is $520.84. The firm has a market capitalization of $166.88 billion, a PE ratio of 42.68, a P/E/G ratio of 0.81 and a beta of 2.45. AppLovin Corporation has a 1 year low of $320.00 and a 1 year high of $745.61.

AppLovin (NASDAQ:APP - Get Free Report) last issued its quarterly earnings results on Wednesday, May 6th. The company reported $3.56 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.44 by $0.12. The firm had revenue of $1.84 billion for the quarter, compared to analyst estimates of $1.77 billion. AppLovin had a return on equity of 219.37% and a net margin of 64.29%.The business's revenue was up 58.9% on a year-over-year basis. During the same period in the previous year, the company posted $1.67 earnings per share. As a group, equities research analysts expect that AppLovin Corporation will post 15.86 earnings per share for the current fiscal year.

Insider Transactions at AppLovin

In other news, Director Maynard G. Webb, Jr. sold 3,076 shares of AppLovin stock in a transaction that occurred on Friday, June 5th. The stock was sold at an average price of $582.04, for a total value of $1,790,355.04. Following the sale, the director directly owned 123,520 shares of the company's stock, valued at $71,893,580.80. The trade was a 2.43% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CTO Vasily Shikin sold 8,112 shares of AppLovin stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $483.67, for a total value of $3,923,531.04. Following the completion of the sale, the chief technology officer directly owned 18,805 shares in the company, valued at $9,095,414.35. This represents a 30.14% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 389,924 shares of company stock valued at $187,404,946. Insiders own 13.66% of the company's stock.

AppLovin Company Profile

AppLovin Corporation is a Palo Alto–based mobile technology company that provides software and services to help app developers grow and monetize their businesses. The company operates a data-driven advertising and marketing platform that connects app publishers and advertisers, delivering tools for user acquisition, monetization, analytics and creative optimization. AppLovin's technology is integrated into a broad set of mobile applications through software development kits (SDKs) and ad products designed to maximize revenue and engagement for developers.

Key components of AppLovin's offering include an ad mediation and exchange platform that enables publishers to manage and monetize inventory across multiple demand sources, and a user-acquisition platform that helps advertisers target and scale campaigns.

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