AppLovin (NASDAQ:APP) Shares Down 7.8% – Here’s What Happened

AppLovin Corporation (NASDAQ:APP)’s stock price was down 7.8% on Wednesday . The stock traded as low as $622.24 and last traded at $616.6890. Approximately 954,774 shares traded hands during mid-day trading, a decline of 73% from the average daily volume of 3,548,827 shares. The stock had previously closed at $668.63.

Analysts Set New Price Targets

Several research firms have recently issued reports on APP. Deutsche Bank Aktiengesellschaft set a $705.00 price objective on shares of AppLovin and gave the stock a “buy” rating in a research report on Wednesday, October 22nd. Phillip Securities raised AppLovin to a “moderate buy” rating in a research report on Monday, September 29th. JPMorgan Chase & Co. increased their price objective on AppLovin from $425.00 to $650.00 and gave the company a “neutral” rating in a report on Thursday, November 6th. Royal Bank Of Canada boosted their target price on AppLovin from $700.00 to $750.00 and gave the stock an “outperform” rating in a research note on Thursday, November 6th. Finally, Morgan Stanley increased their price target on shares of AppLovin from $750.00 to $800.00 and gave the company an “overweight” rating in a research note on Tuesday. One investment analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, AppLovin has an average rating of “Moderate Buy” and an average target price of $706.76.

AppLovin Trading Down 10.0%

The business’s 50 day simple moving average is $640.73 and its 200 day simple moving average is $549.90. 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 capitalization of $203.37 billion, a price-to-earnings ratio of 73.16, a price-to-earnings-growth ratio of 2.18 and a beta of 2.50.

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

Insider Activity

In other news, insider Victoria Valenzuela sold 7,609 shares of the stock in a transaction that occurred on Thursday, December 18th. The stock was sold at an average price of $657.13, for a total transaction of $5,000,102.17. Following the completion of the transaction, the insider directly owned 277,110 shares of the company’s stock, valued at approximately $182,097,294.30. This represents a 2.67% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CEO Arash Adam Foroughi sold 17,112 shares of AppLovin stock in a transaction that occurred on Friday, November 21st. The shares were sold at an average price of $502.48, for a total value of $8,598,437.76. Following the completion of the sale, the chief executive officer owned 2,584,049 shares in the company, valued at approximately $1,298,432,941.52. This trade represents a 0.66% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 340,336 shares of company stock worth $200,062,623 over the last quarter. Insiders own 13.66% of the company’s stock.

Institutional Investors Weigh In On AppLovin

Several institutional investors have recently made changes to their positions in the stock. Spire Wealth Management lifted its stake in shares of AppLovin by 0.3% in the fourth quarter. Spire Wealth Management now owns 8,596 shares of the company’s stock valued at $5,792,000 after purchasing an additional 28 shares during the period. Barnes Dennig Private Wealth Management LLC increased its holdings in AppLovin by 81.7% in the fourth quarter. Barnes Dennig Private Wealth Management LLC now owns 109 shares of the company’s stock valued at $73,000 after buying an additional 49 shares in the last quarter. Eastern Bank grew its holdings in shares of AppLovin by 49.5% in the 4th quarter. Eastern Bank now owns 157 shares of the company’s stock worth $106,000 after acquiring an additional 52 shares during the period. Woodward Diversified Capital LLC increased its stake in AppLovin by 49.5% in the 4th quarter. Woodward Diversified Capital LLC now owns 2,348 shares of the company’s stock valued at $1,582,000 after purchasing an additional 777 shares in the last quarter. Finally, Legal Advantage Investments Inc. boosted its position in AppLovin by 26.5% during the fourth quarter. Legal Advantage Investments Inc. now owns 5,375 shares of the company’s stock worth $3,622,000 after purchasing an additional 1,125 shares in the last quarter. 41.85% of the stock is currently owned by hedge funds and other institutional investors.

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.