AppLovin (NASDAQ:APP) Stock Price Down 9.3% – Time to Sell?

AppLovin Co. (NASDAQ:APP)’s share price fell 9.3% on Tuesday . The stock traded as low as $313.61 and last traded at $322.00. 2,836,932 shares changed hands during mid-day trading, a decline of 26% from the average session volume of 3,847,477 shares. The stock had previously closed at $354.93.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on APP. Macquarie boosted their price objective on AppLovin from $270.00 to $450.00 and gave the stock an “outperform” rating in a report on Friday, December 6th. Citigroup boosted their price target on AppLovin from $335.00 to $460.00 and gave the company a “buy” rating in a research note on Thursday, December 5th. UBS Group raised AppLovin from a “neutral” rating to a “buy” rating and upped their price objective for the company from $100.00 to $145.00 in a report on Tuesday, September 17th. Needham & Company LLC reissued a “hold” rating on shares of AppLovin in a report on Thursday, November 7th. Finally, JPMorgan Chase & Co. upped their price target on shares of AppLovin from $160.00 to $200.00 and gave the company a “neutral” rating in a research note on Thursday, November 7th. One equities research analyst has rated the stock with a sell rating, four have given a hold rating, thirteen have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat.com, AppLovin has an average rating of “Moderate Buy” and a consensus price target of $312.18.

AppLovin Stock Performance

The company’s 50 day moving average is $312.12 and its 200 day moving average is $177.04. The firm has a market cap of $110.48 billion, a P/E ratio of 99.76, a P/E/G ratio of 4.17 and a beta of 2.29. The company has a debt-to-equity ratio of 3.70, a quick ratio of 2.41 and a current ratio of 2.41.

AppLovin (NASDAQ:APP) last issued its earnings results on Wednesday, November 6th. The company reported $1.25 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.92 by $0.33. AppLovin had a return on equity of 122.24% and a net margin of 26.85%. The business had revenue of $1.20 billion during the quarter, compared to analysts’ expectations of $1.13 billion. During the same quarter in the prior year, the firm earned $0.30 EPS. The business’s revenue for the quarter was up 38.6% compared to the same quarter last year. As a group, equities analysts predict that AppLovin Co. will post 4.06 earnings per share for the current fiscal year.

Insider Buying and Selling

In other AppLovin news, Director Dawson Alyssa Harvey sold 500 shares of the firm’s stock in a transaction on Friday, December 6th. The shares were sold at an average price of $406.27, for a total value of $203,135.00. Following the completion of the sale, the director now directly owns 6,684 shares in the company, valued at approximately $2,715,508.68. This trade represents a 6.96 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Herald Y. Chen sold 400 shares of the company’s stock in a transaction dated Monday, December 9th. The shares were sold at an average price of $366.16, for a total transaction of $146,464.00. Following the transaction, the chief financial officer now owns 207,649 shares in the company, valued at $76,032,757.84. This represents a 0.19 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 888,867 shares of company stock valued at $284,773,062 over the last 90 days. 14.69% of the stock is owned by insiders.

Institutional Trading of AppLovin

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Capital Performance Advisors LLP bought a new position in shares of AppLovin in the third quarter valued at approximately $25,000. DT Investment Partners LLC bought a new position in shares of AppLovin during the third quarter valued at about $27,000. Meeder Asset Management Inc. purchased a new position in AppLovin during the third quarter worth about $27,000. Raleigh Capital Management Inc. bought a new stake in AppLovin in the 3rd quarter worth about $29,000. Finally, Quest Partners LLC purchased a new stake in AppLovin in the 2nd quarter valued at about $33,000. 41.85% of the stock is owned by institutional investors.

AppLovin Company Profile

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.