AppLovin (NASDAQ:APP) Trading Down 13.5% – Should You Sell?

AppLovin Co. (NASDAQ:APP)’s share price traded down 13.5% during mid-day trading on Thursday . The company traded as low as $249.08 and last traded at $251.32. 3,863,489 shares were traded during trading, a decline of 30% from the average session volume of 5,535,480 shares. The stock had previously closed at $290.39.

Analyst Ratings Changes

A number of brokerages recently issued reports on APP. Needham & Company LLC reiterated a “hold” rating on shares of AppLovin in a research note on Monday, March 17th. Piper Sandler upped their price objective on AppLovin from $400.00 to $575.00 and gave the company an “overweight” rating in a research report on Thursday, February 13th. The Goldman Sachs Group boosted their price target on AppLovin from $220.00 to $335.00 and gave the stock a “neutral” rating in a research note on Monday, January 27th. Oppenheimer reiterated an “outperform” rating and issued a $560.00 price objective on shares of AppLovin in a report on Thursday, March 27th. Finally, Macquarie raised their price target on shares of AppLovin from $270.00 to $450.00 and gave the company an “outperform” rating in a report on Friday, December 6th. One equities research analyst has rated the stock with a sell rating, four have given a hold rating, fifteen have given a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $435.47.

AppLovin Stock Down 9.8 %

The company has a current ratio of 2.41, a quick ratio of 2.41 and a debt-to-equity ratio of 3.70. The business has a 50-day moving average price of $347.77 and a 200 day moving average price of $286.73. The stock has a market capitalization of $89.06 billion, a P/E ratio of 57.70, a P/E/G ratio of 3.02 and a beta of 2.33.

AppLovin (NASDAQ:APP) last released its quarterly earnings results on Wednesday, February 12th. The company reported $1.73 EPS for the quarter, topping the consensus estimate of $1.12 by $0.61. AppLovin had a return on equity of 188.55% and a net margin of 33.54%. On average, equities analysts expect that AppLovin Co. will post 6.87 EPS for the current fiscal year.

Insider Activity

In other news, CEO Arash Adam Foroughi sold 45,000 shares of AppLovin stock in a transaction that occurred on Friday, February 21st. The shares were sold at an average price of $422.21, for a total transaction of $18,999,450.00. Following the completion of the sale, the chief executive officer now owns 2,914,492 shares of the company’s stock, valued at approximately $1,230,527,667.32. The trade was a 1.52 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CTO Vasily Shikin sold 17,500 shares of the firm’s stock in a transaction on Monday, March 10th. The stock was sold at an average price of $241.65, for a total value of $4,228,875.00. Following the transaction, the chief technology officer now owns 88,389 shares in the company, valued at $21,359,201.85. The trade was a 16.53 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 306,900 shares of company stock valued at $106,401,841. 14.69% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in APP. Benjamin Edwards Inc. bought a new position in AppLovin in the third quarter worth approximately $364,000. Ascent Group LLC purchased a new position in AppLovin in the third quarter valued at about $540,000. Janus Henderson Group PLC raised its holdings in AppLovin by 31.3% in the third quarter. Janus Henderson Group PLC now owns 2,350,802 shares of the company’s stock worth $306,897,000 after purchasing an additional 560,560 shares in the last quarter. Investment Management Corp of Ontario lifted its position in shares of AppLovin by 264.5% during the third quarter. Investment Management Corp of Ontario now owns 14,580 shares of the company’s stock valued at $1,903,000 after buying an additional 10,580 shares during the last quarter. Finally, IHT Wealth Management LLC bought a new stake in shares of AppLovin in the 3rd quarter valued at about $316,000. Hedge funds and other institutional investors own 41.85% of the company’s stock.

About AppLovin

AppLovin Corporation engages in building a software-based platform for advertisers to enhance the marketing and monetization of their content in the United States and internationally. It operates through two segments, Software Platform and Apps. The company's software solutions include AppDiscovery, a marketing software solution, which matches advertiser demand with publisher supply through auctions; MAX, an in-app bidding software that optimizes the value of a publisher's advertising inventory by running a real-time competitive auction; Adjust, a measurement and analytics marketing platform that provides marketers with the visibility, insights, and tools needed to grow their apps from early stage to maturity; and Wurl, a connected TV platform, which distributes streaming video for content companies and provides advertising and publishing solutions through its AdPool, ContentDiscovery, and Global FAST Pass products.