AppLovin (NASDAQ:APP) Shares Down 9.1% – Here’s What Happened

AppLovin Corporation (NASDAQ:APP) was down 9.1% during mid-day trading on Monday . The stock traded as low as $375.70 and last traded at $380.62. Approximately 7,174,553 shares traded hands during mid-day trading, an increase of 3% from the average daily volume of 6,975,060 shares. The stock had previously closed at $418.68.

Analyst Upgrades and Downgrades

APP has been the subject of several analyst reports. Needham & Company LLC reaffirmed a “buy” rating and issued a $700.00 price objective on shares of AppLovin in a report on Thursday, February 12th. UBS Group set a $740.00 price target on AppLovin in a report on Thursday, February 12th. Benchmark reiterated a “buy” rating on shares of AppLovin in a research report on Monday, February 2nd. Morgan Stanley set a $720.00 price objective on AppLovin in a report on Thursday, February 12th. Finally, JPMorgan Chase & Co. raised their target price on AppLovin from $425.00 to $650.00 and gave the stock a “neutral” rating in a research note on Thursday, November 6th. Twenty-one equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $651.77.

AppLovin Price Performance

The business has a 50 day simple moving average of $566.47 and a two-hundred day simple moving average of $573.74. The firm has a market capitalization of $128.63 billion, a P/E ratio of 39.04, a price-to-earnings-growth ratio of 0.86 and a beta of 2.49. The company has a debt-to-equity ratio of 1.65, a quick ratio of 3.32 and a current ratio of 3.32.

AppLovin (NASDAQ:APP) last announced its earnings results on Wednesday, February 11th. The company reported $3.24 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.89 by $0.35. The business had revenue of $1.66 billion during the quarter, compared to analyst estimates of $1.61 billion. AppLovin had a net margin of 57.42% and a return on equity of 245.64%. AppLovin’s revenue for the quarter was up 66.0% on a year-over-year basis. During the same period in the previous year, the business posted $1.73 earnings per share. On average, sell-side analysts expect that AppLovin Corporation will post 6.87 EPS for the current fiscal year.

Insider Transactions at AppLovin

In related news, Director Dawson Alyssa Harvey sold 150 shares of the business’s stock in a transaction that occurred on Monday, December 8th. The stock was sold at an average price of $693.32, for a total value of $103,998.00. Following the completion of the sale, the director owned 2,829 shares in the company, valued at $1,961,402.28. The trade was a 5.04% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Victoria Valenzuela sold 7,609 shares of the stock in a transaction that occurred on Thursday, December 18th. The shares were sold at an average price of $657.13, for a total transaction of $5,000,102.17. Following the transaction, the insider owned 277,110 shares in the company, valued at $182,097,294.30. The trade was a 2.67% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 13.66% of the company’s stock.

Institutional Trading of AppLovin

Several institutional investors have recently added to or reduced their stakes in the business. CBIZ Investment Advisory Services LLC boosted its holdings in AppLovin by 58.6% during the 3rd quarter. CBIZ Investment Advisory Services LLC now owns 46 shares of the company’s stock valued at $33,000 after acquiring an additional 17 shares during the period. Redhawk Wealth Advisors Inc. lifted its position in AppLovin by 2.9% in the fourth quarter. Redhawk Wealth Advisors Inc. now owns 640 shares of the company’s stock valued at $431,000 after purchasing an additional 18 shares during the last quarter. Verdence Capital Advisors LLC boosted its stake in shares of AppLovin by 5.7% during the fourth quarter. Verdence Capital Advisors LLC now owns 333 shares of the company’s stock valued at $224,000 after purchasing an additional 18 shares during the period. Versant Capital Management Inc grew its holdings in shares of AppLovin by 2.8% in the third quarter. Versant Capital Management Inc now owns 701 shares of the company’s stock worth $504,000 after purchasing an additional 19 shares during the last quarter. Finally, Claro Advisors LLC increased its stake in shares of AppLovin by 3.2% in the third quarter. Claro Advisors LLC now owns 647 shares of the company’s stock worth $465,000 after buying an additional 20 shares during the period. 41.85% of the stock is currently owned by hedge funds and other institutional investors.

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.