AppLovin (NASDAQ:APP) Stock Price Down 1.8% - Here's Why

Key Points

• AppLovin shares fell 1.8% to $312.06, with trading volume below its average. The stock remains well below its 50-day and 200-day moving averages of $409.53 and $444.16, respectively.
• Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and an average price target of $552.74, despite several firms recently reducing their targets.
• AppLovin’s latest quarterly results met EPS expectations at $3.76, while revenue rose 52.8% year over year to $1.92 billion, slightly below estimates. Insiders sold approximately $148.4 million of stock over the past 90 days.

AppLovin Corporation (NASDAQ:APP - Get Free Report) shares fell 1.8% during trading on Monday . The stock traded as low as $306.25 and last traded at $312.06. 5,029,759 shares changed hands during mid-day trading, a decline of 12% from the average daily volume of 5,722,188 shares. The stock had previously closed at $317.76.

Analyst Upgrades and Downgrades

APP has been the topic of several research analyst reports. Piper Sandler lowered their price target on AppLovin from $385.00 to $325.00 and set a "neutral" rating on the stock in a research report on Friday, August 21st. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and issued a $660.00 target price on shares of AppLovin in a report on Thursday, May 7th. Morgan Stanley dropped their price target on AppLovin from $720.00 to $650.00 and set an "overweight" rating on the stock in a research report on Thursday, August 6th. BTIG Research cut their price target on AppLovin from $574.00 to $408.00 and set a "buy" rating for the company in a report on Wednesday, August 12th. Finally, Wedbush reduced their price objective on AppLovin from $640.00 to $610.00 and set an "outperform" rating for the company in a research report on Thursday, August 6th. Three equities research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eight have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, AppLovin currently has a consensus rating of "Moderate Buy" and an average target price of $552.74.

AppLovin Stock Down 1.8%

The firm has a market capitalization of $104.43 billion, a price-to-earnings ratio of 23.99, a price-to-earnings-growth ratio of 0.64 and a beta of 2.54. The business has a 50 day moving average of $409.53 and a 200 day moving average of $444.16. 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 announced its quarterly earnings results on Tuesday, August 4th. The company reported $3.76 earnings per share (EPS) for the quarter, meeting the consensus estimate of $3.76. AppLovin had a net margin of 64.58% and a return on equity of 193.10%. The firm had revenue of $1.92 billion for the quarter, compared to analyst estimates of $1.94 billion. During the same quarter in the previous year, the firm posted $2.39 EPS. The business's revenue for the quarter was up 52.8% on a year-over-year basis. On average, equities analysts anticipate that AppLovin Corporation will post 15.53 EPS for the current year.

Insider Buying and Selling

In related news, Director Eduardo Vivas sold 163,910 shares of the business's stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $504.06, for a total value of $82,620,474.60. Following the sale, the director owned 6,785,087 shares of the company's stock, valued at $3,420,090,953.22. The trade was a 2.36% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Arash Adam Foroughi sold 22,544 shares of the company's stock in a transaction on Friday, June 12th. The shares were sold at an average price of $494.98, for a total value of $11,158,829.12. Following the completion of the sale, the chief executive officer owned 2,327,684 shares in the company, valued at $1,152,157,026.32. This trade represents a 0.96% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 294,228 shares of company stock valued at $148,403,985 over the last ninety days. Company insiders own 12.81% of the company's stock.

Hedge Funds Weigh In On AppLovin

A number of institutional investors and hedge funds have recently added to or reduced their stakes in APP. Formuepleje A S bought a new stake in AppLovin during the 2nd quarter worth approximately $725,000. Tucker Asset Management LLC bought a new position in AppLovin in the 2nd quarter valued at $449,000. Amundi boosted its stake in AppLovin by 19.5% in the second quarter. Amundi now owns 1,332,633 shares of the company's stock worth $686,612,000 after purchasing an additional 217,214 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new stake in shares of AppLovin during the second quarter worth $55,708,000. Finally, CYBER HORNET ETFs LLC grew its holdings in shares of AppLovin by 795.2% during the second quarter. CYBER HORNET ETFs LLC now owns 6,669 shares of the company's stock worth $3,436,000 after purchasing an additional 5,924 shares during the last quarter. 41.85% of the stock is currently owned by institutional investors and hedge funds.

About AppLovin

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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