AppLovin (NASDAQ:APP) Trading Down 10.5% – Here’s Why

Shares of AppLovin Co. (NASDAQ:APP) were down 10.5% on Thursday . The company traded as low as $445.09 and last traded at $442.30. Approximately 3,811,066 shares changed hands during mid-day trading, a decline of 24% from the average daily volume of 5,015,485 shares. The stock had previously closed at $494.17.

Wall Street Analysts Forecast Growth

A number of research analysts have recently weighed in on APP shares. Oppenheimer reissued an “outperform” rating and issued a $560.00 price objective (up from $480.00) on shares of AppLovin in a report on Thursday, February 13th. Stifel Nicolaus increased their price objective on AppLovin from $250.00 to $435.00 and gave the company a “buy” rating in a report on Thursday, December 5th. Citigroup increased their price objective on AppLovin from $460.00 to $600.00 and gave the company a “buy” rating in a report on Wednesday. JPMorgan Chase & Co. increased their price objective on AppLovin from $325.00 to $475.00 and gave the company a “neutral” rating in a report on Thursday, February 13th. Finally, Daiwa America raised AppLovin from a “hold” rating to a “strong-buy” rating in a report on Friday, November 8th. Four equities research analysts have rated the stock with a hold rating, fourteen have issued a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $442.18.

AppLovin Stock Performance

The company has a debt-to-equity ratio of 3.70, a current ratio of 2.41 and a quick ratio of 2.41. The firm has a fifty day simple moving average of $365.59 and a 200 day simple moving average of $243.25. The company has a market capitalization of $139.37 billion, a price-to-earnings ratio of 91.48, a price-to-earnings-growth ratio of 3.28 and a beta of 2.30.

AppLovin (NASDAQ:APP) last issued its quarterly earnings data on Wednesday, February 12th. The company reported $1.73 EPS for the quarter, beating 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, analysts anticipate that AppLovin Co. will post 6.87 earnings per share for the current fiscal year.

Insider Activity

In other news, Director Dawson Alyssa Harvey sold 500 shares of the firm’s stock in a transaction that occurred on Friday, December 6th. The stock was sold at an average price of $406.27, for a total value of $203,135.00. Following the transaction, the director now owns 6,684 shares in the company, valued at $2,715,508.68. This trade represents a 6.96 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Herald Y. Chen sold 400 shares of the firm’s stock in a transaction that occurred on Monday, December 9th. The shares were sold at an average price of $366.16, for a total value of $146,464.00. Following the completion of the transaction, the chief financial officer now owns 207,649 shares in the company, valued at approximately $76,032,757.84. This trade represents a 0.19 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 196,302 shares of company stock worth $65,305,354 over the last quarter. 14.69% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On AppLovin

A number of institutional investors have recently added to or reduced their stakes in APP. Sequoia Financial Advisors LLC purchased a new position in AppLovin during the third quarter worth approximately $281,000. Signaturefd LLC lifted its position in AppLovin by 12.3% during the third quarter. Signaturefd LLC now owns 2,794 shares of the company’s stock worth $365,000 after buying an additional 305 shares in the last quarter. Private Advisor Group LLC lifted its position in AppLovin by 58.0% during the third quarter. Private Advisor Group LLC now owns 11,291 shares of the company’s stock worth $1,474,000 after buying an additional 4,147 shares in the last quarter. International Assets Investment Management LLC purchased a new position in AppLovin during the third quarter worth approximately $56,410,000. Finally, IFM Investors Pty Ltd lifted its position in AppLovin by 11.0% during the third quarter. IFM Investors Pty Ltd now owns 40,439 shares of the company’s stock worth $5,279,000 after buying an additional 3,999 shares in the last quarter. 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.