AppLovin (NASDAQ:APP) Shares Down 8.3% Following Insider Selling

AppLovin Co. (NASDAQ:APP) dropped 8.3% during mid-day trading on Tuesday following insider selling activity. The company traded as low as $367.12 and last traded at $376.54. Approximately 4,871,838 shares traded hands during mid-day trading, a decline of 9% from the average daily volume of 5,377,460 shares. The stock had previously closed at $410.45.

Specifically, CEO Arash Adam Foroughi sold 45,000 shares of AppLovin stock in a transaction that occurred on Friday, February 21st. The stock was sold at an average price of $422.21, for a total transaction of $18,999,450.00. Following the completion of the transaction, the chief executive officer now directly owns 2,914,492 shares in the company, valued at approximately $1,230,527,667.32. The trade was a 1.52 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Arash Adam Foroughi sold 44,400 shares of the 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 transaction, the chief executive officer now directly owns 2,869,492 shares in the company, valued at approximately $1,179,045,567.88. This represents a 1.52 % decrease in their ownership of the stock. The disclosure for this sale can be found here.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on the company. JPMorgan Chase & Co. lifted their target price on AppLovin from $325.00 to $475.00 and gave the stock a “neutral” rating in a report on Thursday, February 13th. Oppenheimer reaffirmed an “outperform” rating and set a $560.00 price objective (up previously from $480.00) on shares of AppLovin in a research report on Thursday, February 13th. Wedbush restated an “outperform” rating and set a $270.00 price objective (up from $170.00) on shares of AppLovin in a research report on Thursday, November 7th. Macquarie upped their price objective on AppLovin from $270.00 to $450.00 and gave the stock an “outperform” rating in a research report on Friday, December 6th. Finally, Citigroup raised their target price on shares of AppLovin from $460.00 to $600.00 and gave the company a “buy” rating in a research report on Wednesday, February 19th. Four analysts have rated the stock with a hold rating, fourteen have issued a buy rating and one has given a strong buy rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $442.18.

AppLovin Trading Down 12.2 %

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 firm has a fifty day simple moving average of $368.06 and a 200-day simple moving average of $250.75. The firm has a market cap of $111.08 billion, a P/E ratio of 72.91, a price-to-earnings-growth ratio of 3.02 and a beta of 2.30.

AppLovin (NASDAQ:APP) last announced its quarterly earnings results on Wednesday, February 12th. The company reported $1.73 EPS for the quarter, beating analysts’ consensus estimates of $1.12 by $0.61. AppLovin had a net margin of 33.54% and a return on equity of 188.55%. On average, equities research analysts expect that AppLovin Co. will post 6.87 earnings per share for the current year.

Institutional Trading of AppLovin

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Private Advisor Group LLC lifted its position in shares of AppLovin by 58.0% during the 3rd quarter. Private Advisor Group LLC now owns 11,291 shares of the company’s stock worth $1,474,000 after buying an additional 4,147 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. boosted its holdings in shares of AppLovin by 1.2% in the 3rd quarter. Mirae Asset Global Investments Co. Ltd. now owns 13,627 shares of the company’s stock worth $1,741,000 after buying an additional 157 shares during the last quarter. Arkadios Wealth Advisors bought a new position in AppLovin during the third quarter valued at about $292,000. Pallas Capital Advisors LLC increased its holdings in AppLovin by 3.0% during the third quarter. Pallas Capital Advisors LLC now owns 15,916 shares of the company’s stock worth $2,078,000 after buying an additional 459 shares during the last quarter. Finally, abrdn plc boosted its stake in AppLovin by 784.2% in the third quarter. abrdn plc now owns 49,691 shares of the company’s stock valued at $6,487,000 after acquiring an additional 44,071 shares during the last quarter. 41.85% of the stock is owned by institutional investors.

AppLovin Company Profile

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.