AppLovin (NASDAQ:APP) Trading Down 3.3% – Should You Sell?

AppLovin Co. (NASDAQ:APP)’s stock price was down 3.3% during mid-day trading on Wednesday . The stock traded as low as $230.26 and last traded at $237.45. Approximately 2,016,941 shares traded hands during mid-day trading, a decline of 65% from the average daily volume of 5,766,899 shares. The stock had previously closed at $245.47.

Wall Street Analyst Weigh In

APP has been the subject of a number of recent research reports. Jefferies Financial Group boosted their price objective on shares of AppLovin from $400.00 to $425.00 and gave the company a “buy” rating in a research report on Wednesday, January 8th. Citigroup raised their price objective on AppLovin from $460.00 to $600.00 and gave the company a “buy” rating in a research report on Wednesday, February 19th. Arete Research set a $200.00 price objective on shares of AppLovin in a research report on Wednesday, March 5th. FBN Securities began coverage on AppLovin in a research report on Friday, March 28th. They issued an “outperform” rating and a $385.00 price target for the company. Finally, Loop Capital reiterated a “buy” rating and issued a $650.00 price target on shares of AppLovin in a report on Friday, March 28th. One equities research analyst has rated the stock with a sell rating, three have assigned a hold rating, sixteen have issued a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $424.84.

AppLovin Stock Up 3.7 %

The firm’s 50-day simple moving average is $316.01 and its two-hundred day simple moving average is $295.27. 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 company has a market capitalization of $80.98 billion, a price-to-earnings ratio of 52.47, a price-to-earnings-growth ratio of 3.02 and a beta of 2.39.

AppLovin (NASDAQ:APP) last posted its quarterly earnings data on Wednesday, February 12th. The company reported $1.73 EPS for the quarter, topping analysts’ consensus estimates of $1.12 by $0.61. AppLovin had a return on equity of 188.55% and a net margin of 33.54%. Sell-side analysts predict that AppLovin Co. will post 6.87 EPS for the current fiscal year.

Insider Activity at AppLovin

In related news, CEO Arash Adam Foroughi sold 44,400 shares of the business’s stock in a transaction dated Monday, February 24th. The shares were sold at an average price of $410.89, for a total transaction of $18,243,516.00. Following the completion of the sale, the chief executive officer now owns 2,869,492 shares of the company’s stock, valued at $1,179,045,567.88. This represents a 1.52 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Herald Y. Chen sold 200,000 shares of the business’s stock in a transaction on Friday, February 28th. The shares were sold at an average price of $324.65, for a total transaction of $64,930,000.00. Following the transaction, the director now directly owns 621,209 shares of the company’s stock, valued at approximately $201,675,501.85. This trade represents a 24.35 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 306,900 shares of company stock worth $106,401,841. 14.69% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On AppLovin

A number of large investors have recently made changes to their positions in APP. JFS Wealth Advisors LLC grew its stake in AppLovin by 38.2% in the fourth quarter. JFS Wealth Advisors LLC now owns 105 shares of the company’s stock valued at $34,000 after purchasing an additional 29 shares in the last quarter. HighPoint Advisor Group LLC increased its holdings in shares of AppLovin by 1.7% during the 4th quarter. HighPoint Advisor Group LLC now owns 1,822 shares of the company’s stock worth $590,000 after purchasing an additional 31 shares during the period. Quadrant Capital Group LLC raised its holdings in AppLovin by 6.7% in the 4th quarter. Quadrant Capital Group LLC now owns 526 shares of the company’s stock valued at $170,000 after acquiring an additional 33 shares in the last quarter. Forum Financial Management LP boosted its stake in AppLovin by 0.9% during the fourth quarter. Forum Financial Management LP now owns 3,776 shares of the company’s stock worth $1,223,000 after buying an additional 33 shares in the last quarter. Finally, Truvestments Capital LLC lifted its stake in AppLovin by 0.7% during the fourth quarter. Truvestments Capital LLC now owns 5,236 shares of the company’s stock worth $1,696,000 after purchasing an additional 38 shares during the period. Institutional investors and hedge funds 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.