AppLovin (NASDAQ:APP) Shares Down 8.7% – What’s Next?

AppLovin Corporation (NASDAQ:APP)’s share price traded down 8.7% during mid-day trading on Monday . The company traded as low as $471.32 and last traded at $462.8580. Approximately 547,202 shares traded hands during mid-day trading, a decline of 90% from the average daily volume of 5,457,605 shares. The stock had previously closed at $506.98.

Analysts Set New Price Targets

A number of brokerages recently commented on APP. Wells Fargo & Company lifted their target price on shares of AppLovin from $571.00 to $575.00 and gave the stock an “overweight” rating in a research report on Tuesday, July 7th. Benchmark restated a “buy” rating on shares of AppLovin in a research report on Wednesday, June 10th. Morgan Stanley reaffirmed an “overweight” rating on shares of AppLovin in a research note on Wednesday, May 27th. Argus began coverage on AppLovin in a report on Tuesday, April 14th. They issued a “buy” rating and a $520.00 price objective on the stock. Finally, Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a $660.00 target price on shares of AppLovin in a research note on Thursday, May 7th. Two analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $668.45.

AppLovin Stock Performance

The business has a fifty day moving average of $509.16 and a 200-day moving average of $497.50. The company has a market cap of $151.53 billion, a PE ratio of 38.83, a P/E/G ratio of 0.82 and a beta of 2.49. The company has a current ratio of 3.24, a quick ratio of 3.24 and a debt-to-equity ratio of 1.49.

AppLovin (NASDAQ:APP) last released its quarterly earnings data on Wednesday, May 6th. The company reported $3.56 earnings per share for the quarter, topping the consensus estimate of $3.44 by $0.12. The business had revenue of $1.84 billion during the quarter, compared to analysts’ expectations of $1.77 billion. AppLovin had a return on equity of 219.37% and a net margin of 64.29%.The business’s revenue was up 58.9% on a year-over-year basis. During the same quarter last year, the business posted $1.67 EPS. Equities research analysts anticipate that AppLovin Corporation will post 15.93 earnings per share for the current fiscal year.

Insider Buying and Selling

In other AppLovin news, CEO Arash Adam Foroughi sold 22,544 shares of the company’s stock in a transaction on Friday, June 12th. The shares were sold at an average price of $494.98, for a total value of $11,158,829.12. Following the completion of the transaction, the chief executive officer directly owned 2,327,684 shares in the company, valued at approximately $1,152,157,026.32. This represents a 0.96% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Matthew Stumpf sold 9,052 shares of the company’s stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $600.00, for a total transaction of $5,431,200.00. Following the completion of the transaction, the chief financial officer owned 177,450 shares of the company’s stock, valued at $106,470,000. This trade represents a 4.85% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 393,000 shares of company stock valued at $197,297,363 over the last three months. Insiders own 13.66% of the company’s stock.

Hedge Funds Weigh In On AppLovin

Hedge funds and other institutional investors have recently modified their holdings of the stock. Redhawk Wealth Advisors Inc. boosted its position in AppLovin by 2.9% during the 4th quarter. Redhawk Wealth Advisors Inc. now owns 640 shares of the company’s stock valued at $431,000 after acquiring an additional 18 shares in the last quarter. Verdence Capital Advisors LLC raised its position in shares of AppLovin by 5.7% in the 4th quarter. Verdence Capital Advisors LLC now owns 333 shares of the company’s stock worth $224,000 after acquiring an additional 18 shares in the last quarter. Strategic Advocates LLC lifted its stake in shares of AppLovin by 0.8% in the 3rd quarter. Strategic Advocates LLC now owns 2,576 shares of the company’s stock valued at $1,851,000 after purchasing an additional 21 shares during the period. Finivi Inc. lifted its stake in shares of AppLovin by 3.2% in the 4th quarter. Finivi Inc. now owns 711 shares of the company’s stock valued at $479,000 after purchasing an additional 22 shares during the period. Finally, Revolve Wealth Partners LLC boosted its position in shares of AppLovin by 2.8% during the second quarter. Revolve Wealth Partners LLC now owns 851 shares of the company’s stock valued at $438,000 after purchasing an additional 23 shares in the last quarter. Hedge funds and other institutional investors own 41.85% of the company’s stock.

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.