AppLovin (NASDAQ:APP) Shares Down 4.9% – What’s Next?

Shares of AppLovin Corporation (NASDAQ:APP) dropped 4.9% on Tuesday . The company traded as low as $319.50 and last traded at $322.4220. 1,616,651 shares traded hands during mid-day trading, a decline of 72% from the average session volume of 5,710,702 shares. The stock had previously closed at $339.00.

Analysts Set New Price Targets

A number of research analysts have issued reports on the stock. Royal Bank Of Canada reduced their target price on shares of AppLovin from $700.00 to $575.00 and set an “outperform” rating for the company in a research note on Thursday, August 6th. Deutsche Bank Aktiengesellschaft restated a “buy” rating and issued a $660.00 price target on shares of AppLovin in a research note on Thursday, May 7th. Bank of America reiterated a “neutral” rating and set a $400.00 price objective (down from $430.00) on shares of AppLovin in a research report on Tuesday. Piper Sandler lowered AppLovin from an “overweight” rating to a “neutral” rating and decreased their price objective for the stock from $665.00 to $385.00 in a report on Thursday, August 6th. Finally, Citigroup lowered their target price on AppLovin from $710.00 to $650.00 and set a “buy” rating on the stock in a research report on Friday. Two research analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and eight have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $573.45.

AppLovin Price Performance

The business has a 50-day simple moving average of $468.68 and a two-hundred day simple moving average of $461.58. The company has a quick ratio of 4.30, a current ratio of 4.30 and a debt-to-equity ratio of 1.11. The stock has a market capitalization of $108.11 billion, a price-to-earnings ratio of 24.79, a P/E/G ratio of 0.64 and a beta of 2.54.

AppLovin (NASDAQ:APP) last issued its quarterly earnings results on Tuesday, August 4th. The company reported $3.76 earnings per share (EPS) for the quarter, meeting the consensus estimate of $3.76. AppLovin had a return on equity of 193.10% and a net margin of 64.58%.The company had revenue of $1.92 billion for the quarter, compared to analysts’ expectations of $1.94 billion. During the same period last year, the firm earned $2.39 EPS. The firm’s revenue for the quarter was up 52.8% on a year-over-year basis. As a group, research analysts predict that AppLovin Corporation will post 15.56 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other AppLovin news, Director Eduardo Vivas sold 163,910 shares of the company’s stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $504.06, for a total value of $82,620,474.60. Following the transaction, the director owned 6,785,087 shares of the company’s stock, valued at approximately $3,420,090,953.22. This represents a 2.36% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Victoria Valenzuela sold 20,000 shares of the stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $565.89, for a total value of $11,317,800.00. Following the sale, the insider owned 243,961 shares of the company’s stock, valued at $138,055,090.29. This trade represents a 7.58% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 393,000 shares of company stock worth $197,297,363. Company insiders own 12.81% of the company’s stock.

Hedge Funds Weigh In On AppLovin

Institutional investors have recently bought and sold shares of the stock. Revolve Wealth Partners LLC purchased a new position in shares of AppLovin in the fourth quarter worth approximately $294,000. Bison Wealth LLC purchased a new stake in shares of AppLovin in the 4th quarter valued at approximately $239,000. Integrated Wealth Concepts LLC boosted its stake in AppLovin by 58.0% in the 1st quarter. Integrated Wealth Concepts LLC now owns 1,692 shares of the company’s stock worth $448,000 after purchasing an additional 621 shares during the period. NewEdge Advisors LLC grew its position in AppLovin by 5.7% during the 2nd quarter. NewEdge Advisors LLC now owns 14,523 shares of the company’s stock worth $5,084,000 after purchasing an additional 782 shares in the last quarter. Finally, Treasurer of the State of North Carolina grew its position in AppLovin by 7.2% during the 2nd quarter. Treasurer of the State of North Carolina now owns 139,189 shares of the company’s stock worth $48,727,000 after purchasing an additional 9,380 shares in the last quarter. Hedge funds and other institutional investors own 41.85% of the company’s stock.

AppLovin Company Profile

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.