AppLovin (NASDAQ:APP) Stock Price Down 2.7% Following Analyst Downgrade

Key Points

• AppLovin shares fell 2.7% to $312.01 after BTIG Research cut its price target from $408 to $396, while maintaining a buy rating.
• Analyst sentiment remains broadly positive, with MarketBeat reporting a “Moderate Buy” consensus and an average price target of $538.09, despite several recent target reductions.
• Insiders sold approximately $135.3 million of stock over the past quarter, while institutional investors own 41.85% of AppLovin; the company’s latest quarterly revenue rose 52.8% year over year to $1.92 billion.

AppLovin Corporation (NASDAQ:APP - Get Free Report)'s stock price dropped 2.7% during trading on Tuesday 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 $309.85 and last traded at $312.01. 3,820,115 shares changed hands during mid-day trading, a decline of 33% from the average daily volume of 5,667,751 shares. The stock had previously closed at $320.56.

A number of other equities research analysts have also recently commented on APP. Piper Sandler reduced their target price on shares of AppLovin from $385.00 to $325.00 and set a "neutral" rating for the company in a report on Friday, August 21st. 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. UBS Group reduced their price objective on AppLovin from $798.00 to $790.00 and set a "buy" rating for the company in a research note on Thursday, August 6th. Needham & Company LLC decreased their price objective on AppLovin from $500.00 to $475.00 and set a "buy" rating for the company in a research report on Wednesday, August 26th. Finally, Weiss Ratings raised AppLovin from a "hold (c)" rating to a "hold (c+)" rating in a research report on Thursday, August 6th. Three research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eight have given a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $538.09.

Insider Buying and Selling

In related news, Director Eduardo Vivas sold 163,910 shares of the firm's stock in a transaction that occurred 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 completion of the transaction, the director directly owned 6,785,087 shares of the company's stock, valued at $3,420,090,953.22. This trade represents a 2.36% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Maynard G. Webb, Jr. sold 3,076 shares of the firm's stock in a transaction on Monday, July 6th. The shares were sold at an average price of $521.29, for a total value of $1,603,488.04. Following the completion of the transaction, the director owned 120,444 shares of the company's stock, valued at approximately $62,786,252.76. This represents a 2.49% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 271,152 shares of company stock valued at $135,295,830 over the last quarter. Company insiders own 12.81% of the company's stock.

Institutional Trading of AppLovin

Large investors have recently made changes to their positions in the stock. Cassaday & Co Wealth Management LLC purchased a new stake in AppLovin in the 1st quarter worth approximately $25,000. Mcguire Capital Advisors Inc. purchased a new position in shares of AppLovin during the 4th quarter worth $27,000. Pioneer Family Office LLC acquired a new stake in shares of AppLovin during the second quarter worth $31,000. First Pacific Financial acquired a new stake in shares of AppLovin during the first quarter worth $33,000. Finally, IMA Advisory Services Inc. boosted its holdings in shares of AppLovin by 40.0% during 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 during the last quarter. Institutional investors and hedge funds own 41.85% of the company's stock.

AppLovin Stock Performance

The firm has a market cap of $104.41 billion, a PE ratio of 23.98, 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 current ratio of 4.30 and a quick ratio of 4.30. The stock has a 50-day moving average price of $391.02 and a 200 day moving average price of $440.23.

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, hitting the consensus estimate 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 for the quarter, compared to the consensus estimate of $1.94 billion. During the same period in the prior year, the business posted $2.39 earnings per share. The firm's revenue for the quarter was up 52.8% compared to the same quarter last year. Research analysts forecast that AppLovin Corporation will post 15.53 earnings per share for the current year.

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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