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

AppLovin Corporation (NASDAQ:APP)’s stock price gapped down before the market opened on Monday . The stock had previously closed at $418.68, but opened at $401.63. AppLovin shares last traded at $383.04, with a volume of 1,375,349 shares.

Analyst Upgrades and Downgrades

APP has been the subject of several recent analyst reports. Wells Fargo & Company decreased their target price on shares of AppLovin from $735.00 to $543.00 and set an “overweight” rating for the company in a report on Thursday, February 12th. Jefferies Financial Group reduced their price target on AppLovin from $860.00 to $700.00 and set a “buy” rating for the company in a report on Thursday, February 12th. The Goldman Sachs Group decreased their price objective on shares of AppLovin from $710.00 to $585.00 and set a “neutral” rating for the company in a report on Thursday, February 12th. Scotiabank increased their price target on AppLovin from $750.00 to $775.00 and gave the company an “outperform” rating in a report on Thursday, February 12th. Finally, UBS Group set a $740.00 price objective on AppLovin in a research note on Thursday, February 12th. Twenty-one analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $651.77.

AppLovin Trading Down 10.0%

The company has a current ratio of 3.32, a quick ratio of 3.32 and a debt-to-equity ratio of 1.65. The business’s fifty day simple moving average is $566.47 and its 200 day simple moving average is $573.74. The stock has a market cap of $127.40 billion, a P/E ratio of 38.61, a price-to-earnings-growth ratio of 0.86 and a beta of 2.49.

AppLovin (NASDAQ:APP) last issued 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. AppLovin had a net margin of 57.42% and a return on equity of 245.64%. The company had revenue of $1.66 billion for the quarter, compared to analyst estimates of $1.61 billion. During the same quarter last year, the firm earned $1.73 EPS. The company’s revenue for the quarter was up 66.0% on a year-over-year basis. As a group, analysts expect that AppLovin Corporation will post 6.87 EPS for the current year.

Insider Buying and Selling at AppLovin

In other news, Director Dawson Alyssa Harvey sold 150 shares of the company’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 transaction of $103,998.00. Following the sale, the director owned 2,829 shares in the company, valued at $1,961,402.28. This represents a 5.04% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, insider Victoria Valenzuela sold 7,609 shares of AppLovin stock in a transaction dated Thursday, December 18th. The stock was sold at an average price of $657.13, for a total value of $5,000,102.17. Following the transaction, the insider owned 277,110 shares of the company’s stock, valued at $182,097,294.30. The trade was a 2.67% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders own 13.66% of the company’s stock.

Institutional Investors Weigh In On AppLovin

A number of institutional investors have recently modified their holdings of APP. LFA Lugano Financial Advisors SA acquired a new position in AppLovin in the second quarter valued at about $26,000. Board of the Pension Protection Fund bought a new position in AppLovin in the 4th quarter valued at approximately $27,000. Washington Trust Advisors Inc. lifted its holdings in shares of AppLovin by 160.0% during the fourth quarter. Washington Trust Advisors Inc. now owns 39 shares of the company’s stock worth $27,000 after purchasing an additional 24 shares during the period. Mcguire Capital Advisors Inc. bought a new stake in shares of AppLovin in the 4th quarter valued at about $27,000. Finally, Chilton Capital Management LLC acquired a new stake in AppLovin during the 3rd quarter valued at approximately $29,000. 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.