AppLovin (NASDAQ:APP) Stock Price Down 1.7% - Should You Sell?

Key Points

• AppLovin shares fell 1.7% to $313.58 in mid-day trading, remaining well below their 50-day and 200-day moving averages of $400.36 and $441.67, respectively.
• Analysts remain broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $538.61, although several firms recently lowered their targets.
• The company’s latest results showed adjusted earnings in line with estimates at $3.76 per share and 52.8% year-over-year revenue growth, while insiders sold approximately $137.1 million of stock over the past 90 days.

Shares of AppLovin Corporation (NASDAQ:APP - Get Free Report) fell 1.7% during mid-day trading on Thursday . The company traded as low as $309.41 and last traded at $313.58. 4,382,913 shares traded hands during trading, a decline of 23% from the average session volume of 5,692,827 shares. The stock had previously closed at $319.05.

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on the stock. JPMorgan Chase & Co. raised their price target on shares of AppLovin from $500.00 to $515.00 and gave the company a "neutral" rating in a report on Thursday, May 7th. Wedbush decreased their price objective on AppLovin from $640.00 to $610.00 and set an "outperform" rating on the stock in a research report on Thursday, August 6th. William Blair set a $440.00 target price on AppLovin in a research note on Monday, August 17th. The Goldman Sachs Group dropped their target price on AppLovin from $585.00 to $465.00 and set a "neutral" rating for the company in a research report on Thursday, August 6th. Finally, Benchmark cut their price target on AppLovin from $500.00 to $440.00 and set a "buy" rating on the stock in a research note on Monday, August 17th. Three research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eight have issued a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $538.61.

AppLovin Trading Down 1.7%

The business has a 50 day moving average of $400.36 and a 200 day moving average of $441.67. The firm has a market capitalization of $104.94 billion, a price-to-earnings ratio of 24.10, a PEG ratio of 0.66 and a beta of 2.49. The company has a debt-to-equity ratio of 1.11, a current ratio of 4.30 and a quick ratio of 4.30.

AppLovin (NASDAQ:APP - Get Free Report) last released its earnings results on Tuesday, August 4th. The company reported $3.76 earnings per share for the quarter, meeting the consensus estimate of $3.76. The firm had revenue of $1.92 billion for the quarter, compared to analyst estimates of $1.94 billion. AppLovin had a return on equity of 193.10% and a net margin of 64.58%.The company's quarterly revenue was up 52.8% on a year-over-year basis. During the same quarter in the prior year, the firm posted $2.39 earnings per share. As a group, research analysts predict that AppLovin Corporation will post 15.53 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director G Jr sold 3,076 shares of the business's stock in a transaction that occurred on Monday, July 6th. The shares were sold at an average price of $521.29, for a total transaction of $1,603,488.04. Following the completion of the transaction, the director owned 120,444 shares in the company, valued at approximately $62,786,252.76. The trade was a 2.49% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Eduardo Vivas sold 163,910 shares of the stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $504.06, for a total transaction of $82,620,474.60. Following the completion of the sale, the director owned 6,785,087 shares in the company, valued at approximately $3,420,090,953.22. This trade represents a 2.36% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 274,228 shares of company stock valued at $137,086,185 in the last 90 days. 12.81% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in APP. Revolve Wealth Partners LLC grew its stake in shares of AppLovin by 2.8% during the 2nd quarter. Revolve Wealth Partners LLC now owns 851 shares of the company's stock worth $438,000 after acquiring an additional 23 shares in the last quarter. Washington Trust Advisors Inc. lifted its position in shares of AppLovin by 160.0% in the fourth quarter. Washington Trust Advisors Inc. now owns 39 shares of the company's stock worth $27,000 after purchasing an additional 24 shares in the last quarter. IMA Advisory Services Inc. lifted its position in shares of AppLovin by 40.0% in the first quarter. IMA Advisory Services Inc. now owns 84 shares of the company's stock worth $33,000 after purchasing an additional 24 shares in the last quarter. Rehmann Capital Advisory Group boosted its holdings in AppLovin by 2.2% during the third quarter. Rehmann Capital Advisory Group now owns 1,115 shares of the company's stock worth $828,000 after purchasing an additional 24 shares during the last quarter. Finally, CENTRAL TRUST Co grew its position in AppLovin by 41.3% in the first quarter. CENTRAL TRUST Co now owns 89 shares of the company's stock valued at $35,000 after purchasing an additional 26 shares in the last quarter. 41.85% of the stock is owned by institutional investors and hedge funds.

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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