AppLovin (NASDAQ:APP) Trading Down 9.1% – What’s Next?

AppLovin Corporation (NASDAQ:APP) shares fell 9.1% on Monday . The stock traded as low as $375.70 and last traded at $380.62. 7,174,553 shares were traded during trading, an increase of 3% from the average session volume of 6,975,060 shares. The stock had previously closed at $418.68.

Analysts Set New Price Targets

APP has been the subject of several recent analyst reports. UBS Group set a $740.00 price objective on shares of AppLovin in a research note on Thursday, February 12th. Morgan Stanley set a $720.00 price target on AppLovin in a report on Thursday, February 12th. Royal Bank Of Canada reaffirmed an “outperform” rating and set a $700.00 price target on shares of AppLovin in a research report on Thursday, February 12th. Piper Sandler reiterated an “overweight” rating and issued a $650.00 price objective (down from $800.00) on shares of AppLovin in a research report on Thursday, February 12th. Finally, Weiss Ratings upgraded AppLovin from a “hold (c+)” rating to a “buy (b-)” rating in a report on Friday. Twenty-one investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, AppLovin has a consensus rating of “Moderate Buy” and a consensus target price of $651.77.

AppLovin Price Performance

The stock has a market cap of $128.63 billion, a P/E ratio of 39.04, a price-to-earnings-growth ratio of 0.86 and a beta of 2.49. The company has a debt-to-equity ratio of 1.65, a quick ratio of 3.32 and a current ratio of 3.32. The firm has a 50-day moving average price of $566.47 and a 200-day moving average price of $573.74.

AppLovin (NASDAQ:APP) last released its quarterly earnings results on Wednesday, February 11th. The company reported $3.24 earnings per share for the quarter, beating the consensus estimate of $2.89 by $0.35. The company had revenue of $1.66 billion for the quarter, compared to analyst estimates of $1.61 billion. AppLovin had a return on equity of 245.64% and a net margin of 57.42%.The firm’s revenue was up 66.0% on a year-over-year basis. During the same period in the previous year, the company posted $1.73 earnings per share. On average, analysts forecast that AppLovin Corporation will post 6.87 earnings per share for the current fiscal year.

Insider Activity

In other AppLovin news, insider Victoria Valenzuela sold 7,609 shares of the firm’s stock in a transaction that occurred on Thursday, December 18th. The shares were 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 owned 277,110 shares of the company’s stock, valued at approximately $182,097,294.30. This trade represents a 2.67% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Dawson Alyssa Harvey sold 150 shares of the business’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 value of $103,998.00. Following the completion of the sale, the director directly owned 2,829 shares in the company, valued at approximately $1,961,402.28. This represents a 5.04% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 13.66% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Washington Trust Advisors Inc. boosted its position in shares of AppLovin by 160.0% during the fourth quarter. Washington Trust Advisors Inc. now owns 39 shares of the company’s stock valued at $27,000 after buying an additional 24 shares during the last quarter. Chilton Capital Management LLC purchased a new position in AppLovin during the third quarter valued at approximately $29,000. Board of the Pension Protection Fund bought a new position in AppLovin in the 4th quarter worth $27,000. Mcguire Capital Advisors Inc. purchased a new stake in AppLovin in the 4th quarter worth $27,000. Finally, Activest Wealth Management raised its holdings in AppLovin by 760.0% during the third quarter. Activest Wealth Management now owns 43 shares of the company’s stock valued at $31,000 after acquiring an additional 38 shares during the period. 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.