AppLovin (NASDAQ:APP) Stock Price Down 6.1% – Time to Sell?

AppLovin Co. (NASDAQ:APP) traded down 6.1% during mid-day trading on Monday . The stock traded as low as $330.54 and last traded at $340.80. 2,270,924 shares were traded during mid-day trading, a decline of 42% from the average session volume of 3,947,066 shares. The stock had previously closed at $363.10.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on the stock. Loop Capital lifted their price target on shares of AppLovin from $385.00 to $450.00 and gave the stock a “buy” rating in a report on Monday, December 16th. Wedbush reiterated an “outperform” rating and issued a $270.00 price target (up previously from $170.00) on shares of AppLovin in a research report on Thursday, November 7th. Stifel Nicolaus raised their price objective on AppLovin from $250.00 to $435.00 and gave the stock a “buy” rating in a research report on Thursday, December 5th. Daiwa America raised AppLovin from a “hold” rating to a “strong-buy” rating in a research note on Friday, November 8th. Finally, Piper Sandler started coverage on shares of AppLovin in a research report on Wednesday, November 20th. They set an “overweight” rating and a $400.00 target price for the company. Four equities research analysts have rated the stock with a hold rating, fourteen have assigned a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $366.29.

AppLovin Price Performance

The business has a 50-day moving average price of $339.10 and a two-hundred day moving average price of $203.00. The company has a quick ratio of 2.41, a current ratio of 2.41 and a debt-to-equity ratio of 3.70. The company has a market capitalization of $122.94 billion, a price-to-earnings ratio of 111.01, a price-to-earnings-growth ratio of 2.96 and a beta of 2.29.

AppLovin (NASDAQ:APP) last released its quarterly earnings data on Wednesday, November 6th. The company reported $1.25 earnings per share for the quarter, topping the consensus estimate of $0.92 by $0.33. The firm had revenue of $1.20 billion for the quarter, compared to the consensus estimate of $1.13 billion. AppLovin had a net margin of 26.85% and a return on equity of 122.24%. The business’s revenue was up 38.6% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.30 earnings per share. As a group, research analysts anticipate that AppLovin Co. will post 4.06 EPS for the current year.

Insider Buying and Selling

In other AppLovin news, CMO Katie Kihorany Jansen sold 59,876 shares of the company’s stock in a transaction on Tuesday, November 12th. The stock was sold at an average price of $286.14, for a total value of $17,132,918.64. Following the completion of the transaction, the chief marketing officer now owns 1,017,388 shares in the company, valued at $291,115,402.32. This represents a 5.56 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Arash Adam Foroughi sold 1,676 shares of the firm’s stock in a transaction on Tuesday, December 10th. The shares were sold at an average price of $356.39, for a total value of $597,309.64. Following the sale, the chief executive officer now directly owns 3,058,635 shares of the company’s stock, valued at approximately $1,090,066,927.65. This represents a 0.05 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 888,867 shares of company stock worth $284,773,062. 14.69% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On AppLovin

Several institutional investors have recently bought and sold shares of the company. Avestar Capital LLC purchased a new stake in AppLovin during the fourth quarter valued at about $547,000. Hemington Wealth Management raised its position in shares of AppLovin by 78.4% in the fourth quarter. Hemington Wealth Management now owns 91 shares of the company’s stock valued at $29,000 after purchasing an additional 40 shares during the period. Avidian Wealth Enterprises LLC purchased a new stake in shares of AppLovin during the 4th quarter valued at approximately $498,000. Certuity LLC bought a new position in AppLovin in the 4th quarter worth approximately $416,000. Finally, Louisiana State Employees Retirement System purchased a new position in AppLovin in the 4th quarter valued at approximately $7,059,000. Hedge funds and other institutional investors 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.