AppLovin (NASDAQ:APP) Shares Down 2.2% – What’s Next?

AppLovin Corporation (NASDAQ:APP)’s share price dropped 2.2% during mid-day trading on Monday . The stock traded as low as $682.00 and last traded at $698.82. Approximately 3,107,166 shares traded hands during mid-day trading, a decline of 54% from the average daily volume of 6,731,701 shares. The stock had previously closed at $714.23.

Analysts Set New Price Targets

Several analysts have recently weighed in on the stock. The Goldman Sachs Group lifted their target price on shares of AppLovin from $630.00 to $720.00 and gave the company a “neutral” rating in a research report on Friday, November 7th. Bank of America upped their price objective on AppLovin from $580.00 to $860.00 and gave the company a “buy” rating in a research note on Wednesday, October 1st. Benchmark raised their target price on AppLovin from $700.00 to $775.00 and gave the stock a “buy” rating in a research report on Thursday, December 11th. Piper Sandler upped their price target on AppLovin from $740.00 to $800.00 and gave the company an “overweight” rating in a research report on Thursday, November 6th. Finally, Wedbush increased their target price on shares of AppLovin from $745.00 to $800.00 and gave the stock an “outperform” rating in a research report on Thursday, November 6th. Nineteen research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $695.90.

AppLovin Stock Performance

The company has a debt-to-equity ratio of 2.38, a current ratio of 3.25 and a quick ratio of 3.25. The company has a market cap of $236.17 billion, a price-to-earnings ratio of 84.81, a price-to-earnings-growth ratio of 3.83 and a beta of 2.51. The stock has a 50-day moving average price of $629.93 and a 200 day moving average price of $524.28.

AppLovin (NASDAQ:APP) last announced its quarterly earnings data on Wednesday, November 5th. The company reported $2.45 EPS for the quarter, topping analysts’ consensus estimates of $2.34 by $0.11. AppLovin had a net margin of 51.27% and a return on equity of 258.49%. The business had revenue of $1.41 billion for the quarter, compared to analyst estimates of $1.34 billion. During the same quarter in the previous year, the firm posted $1.29 earnings per share. The firm’s revenue for the quarter was up 68.2% on a year-over-year basis. As a group, analysts anticipate that AppLovin Corporation will post 6.87 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Arash Adam Foroughi sold 4,069 shares of AppLovin stock in a transaction dated Friday, November 21st. The shares were sold at an average price of $497.50, for a total transaction of $2,024,327.50. Following the completion of the sale, the chief executive officer owned 2,998,948 shares of the company’s stock, valued at approximately $1,491,976,630. The trade was a 0.14% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CTO Vasily Shikin sold 27,143 shares of the business’s stock in a transaction that occurred on Monday, November 24th. The stock was sold at an average price of $545.38, for a total value of $14,803,249.34. Following the sale, the chief technology officer owned 3,323,681 shares of the company’s stock, valued at approximately $1,812,669,143.78. This represents a 0.81% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 340,336 shares of company stock worth $200,062,623. Company insiders own 13.66% of the company’s stock.

Institutional Investors Weigh In On AppLovin

A number of large investors have recently bought and sold shares of the company. Hilltop National Bank acquired a new position in AppLovin during the second quarter valued at approximately $26,000. LFA Lugano Financial Advisors SA bought a new position in shares of AppLovin in the 2nd quarter valued at $26,000. Chilton Capital Management LLC acquired a new position in shares of AppLovin during the 3rd quarter worth $29,000. Activest Wealth Management lifted its position in shares of AppLovin by 760.0% during the 3rd quarter. Activest Wealth Management now owns 43 shares of the company’s stock worth $31,000 after buying an additional 38 shares during the last quarter. Finally, Twin Peaks Wealth Advisors LLC acquired a new stake in AppLovin in the second quarter valued at about $33,000. 41.85% of the stock is currently owned by institutional investors and hedge funds.

About AppLovin

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.