AppLovin (NASDAQ:APP) Stock Price Down 2.2% on Analyst Downgrade

Key Points

• AppLovin shares fell 2.2% to about $305 after BTIG Research cut its price target from $408 to $396, while maintaining a Buy rating.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $538.09, despite several recent target reductions.
• Insiders sold approximately $124.8 million of stock over the past three months, while institutional investors and hedge funds own 41.85% of the company.

AppLovin Corporation (NASDAQ:APP - Get Free Report) traded down 2.2% on Wednesday after BTIG Research lowered their price target on the stock from $408.00 to $396.00. BTIG Research currently has a buy rating on the stock. AppLovin traded as low as $304.21 and last traded at $305.06. Approximately 3,867,155 shares were traded during mid-day trading, a decline of 32% from the average daily volume of 5,660,016 shares. The stock had previously closed at $312.01.

Other equities research analysts have also issued research reports about the company. Phillip Securities upgraded AppLovin from a "moderate buy" rating to a "strong-buy" rating in a research report on Tuesday, August 11th. Scotiabank restated a "sector outperform" rating and set a $515.00 price objective on shares of AppLovin in a research report on Thursday, August 6th. Evercore reaffirmed an "outperform" rating and issued a $510.00 price objective on shares of AppLovin in a research note on Tuesday, September 1st. William Blair set a $440.00 target price on AppLovin in a report on Monday, August 17th. Finally, Wells Fargo & Company decreased their target price on shares of AppLovin from $357.00 to $325.00 and set an "equal weight" rating for the company in a research report on Wednesday, August 19th. Three research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and eight have issued a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $538.09.

Insider Buying and Selling at AppLovin

In other news, CEO Arash Foroughi sold 33,042 shares of AppLovin stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $486.95, for a total value of $16,089,801.90. Following the completion of the sale, the chief executive officer owned 2,369,351 shares in the company, valued at $1,153,755,469.45. The trade was a 1.38% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Eduardo Vivas sold 163,910 shares of AppLovin stock in a transaction on Tuesday, June 16th. The shares were 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 of the company's stock, valued at $3,420,090,953.22. This represents a 2.36% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 250,319 shares of company stock valued at $124,797,873. 12.81% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On AppLovin

Large investors have recently bought and sold shares of the stock. Revolve Wealth Partners LLC boosted its position 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 purchasing an additional 23 shares in the last quarter. IMA Advisory Services Inc. grew its stake in shares of AppLovin by 40.0% in the 1st quarter. IMA Advisory Services Inc. now owns 84 shares of the company's stock valued at $33,000 after buying an additional 24 shares during the period. Rehmann Capital Advisory Group increased its position in AppLovin by 2.2% in the 3rd quarter. Rehmann Capital Advisory Group now owns 1,115 shares of the company's stock valued at $828,000 after buying an additional 24 shares in the last quarter. CENTRAL TRUST Co increased its position in AppLovin by 41.3% in the 1st quarter. CENTRAL TRUST Co now owns 89 shares of the company's stock valued at $35,000 after buying an additional 26 shares in the last quarter. Finally, Mitchell Capital Management Co. raised its stake in AppLovin by 0.5% during the 4th quarter. Mitchell Capital Management Co. now owns 5,956 shares of the company's stock worth $4,013,000 after buying an additional 27 shares during the period. 41.85% of the stock is currently owned by institutional investors and hedge funds.

AppLovin Trading Down 2.2%

The business has a 50 day moving average of $386.96 and a two-hundred day moving average of $439.58. The firm has a market capitalization of $102.09 billion, a price-to-earnings ratio of 23.45, a P/E/G ratio of 0.68 and a beta of 2.49. The company has a debt-to-equity ratio of 1.11, a quick ratio of 4.30 and a current ratio of 4.30.

AppLovin (NASDAQ:APP - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The company reported $3.76 EPS for the quarter, meeting analysts' consensus estimates of $3.76. AppLovin had a return on equity of 193.10% and a net margin of 64.58%.The firm had revenue of $1.92 billion during the quarter, compared to analysts' expectations of $1.94 billion. During the same quarter last year, the firm posted $2.39 earnings per share. The company's revenue for the quarter was up 52.8% compared to the same quarter last year. Equities analysts predict that AppLovin Corporation will post 15.53 EPS for the current year.

About AppLovin

AppLovin Corporation NASDAQ: APP is a technology company that provides software and services designed to help mobile application developers grow their businesses. Its platform supports user acquisition, advertising, monetization, measurement and other functions that enable developers to attract users and generate revenue from their applications.

AppLovin's offerings include AXON, an artificial-intelligence-powered software engine used to optimize advertising and user-acquisition campaigns; MAX, a platform for managing in-app advertising and mediation; and AppDiscovery, which helps developers promote their applications.

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