AppLovin (NASDAQ:APP) Trading Down 3.9% on Insider Selling

Shares of AppLovin Co. (NASDAQ:APP) fell 3.9% during mid-day trading on Monday after an insider sold shares in the company. The stock traded as low as $387.85 and last traded at $401.47. 2,524,727 shares were traded during mid-day trading, a decline of 59% from the average session volume of 6,105,568 shares. The stock had previously closed at $417.89.

Specifically, Director Dawson Alyssa Harvey sold 513 shares of the stock in a transaction that occurred on Friday, June 6th. The stock was sold at an average price of $420.30, for a total value of $215,613.90. Following the completion of the transaction, the director now directly owns 3,451 shares in the company, valued at approximately $1,450,455.30. This represents a 12.94% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Dawson Alyssa Harvey sold 2,987 shares of AppLovin stock in a transaction on Thursday, June 5th. The shares were sold at an average price of $413.98, for a total value of $1,236,558.26. Following the completion of the transaction, the director now owns 3,964 shares of the company’s stock, valued at approximately $1,641,016.72. This trade represents a 42.97% decrease in their ownership of the stock. The disclosure for this sale can be found here. In other news, Director Herald Y. Chen sold 100,000 shares of AppLovin stock in a transaction dated Friday, June 6th. The stock was sold at an average price of $419.91, for a total transaction of $41,991,000.00. Following the sale, the director now owns 181,929 shares in the company, valued at approximately $76,393,806.39. The trade was a 35.47% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link.

Analyst Ratings Changes

A number of equities research analysts have weighed in on the company. Citigroup reaffirmed a “buy” rating on shares of AppLovin in a report on Thursday, May 29th. Jefferies Financial Group upped their price objective on AppLovin from $460.00 to $530.00 and gave the stock a “buy” rating in a report on Thursday, May 8th. FBN Securities initiated coverage on shares of AppLovin in a research report on Friday, March 28th. They issued an “outperform” rating and a $385.00 price objective for the company. Benchmark reissued a “buy” rating and issued a $525.00 price objective on shares of AppLovin in a research report on Thursday, May 8th. Finally, Loop Capital restated a “buy” rating and issued a $650.00 target price on shares of AppLovin in a research note on Friday, March 28th. One investment analyst has rated the stock with a sell rating, three have issued a hold rating, seventeen have given a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat.com, AppLovin has an average rating of “Moderate Buy” and an average price target of $438.10.

AppLovin Price Performance

The company has a market cap of $129.81 billion, a PE ratio of 84.50, a price-to-earnings-growth ratio of 3.02 and a beta of 2.53. The business has a 50 day moving average of $315.46 and a 200 day moving average of $333.14. The company has a debt-to-equity ratio of 3.70, a current ratio of 2.41 and a quick ratio of 2.41.

AppLovin (NASDAQ:APP) last issued its earnings results on Wednesday, May 7th. The company reported $1.67 earnings per share for the quarter, topping analysts’ consensus estimates of $1.45 by $0.22. AppLovin had a return on equity of 188.55% and a net margin of 33.54%. The business had revenue of $1.48 billion during the quarter, compared to analyst estimates of $1.38 billion. During the same quarter in the previous year, the firm earned $0.67 EPS. AppLovin’s revenue was up 40.3% on a year-over-year basis. As a group, research analysts predict that AppLovin Co. will post 6.87 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. FMR LLC lifted its position in shares of AppLovin by 75.5% during the fourth quarter. FMR LLC now owns 13,851,122 shares of the company’s stock worth $4,485,409,000 after purchasing an additional 5,957,885 shares during the last quarter. SVB Wealth LLC bought a new stake in shares of AppLovin in the fourth quarter valued at about $1,781,922,000. Baillie Gifford & Co. grew its stake in AppLovin by 5,421.4% in the fourth quarter. Baillie Gifford & Co. now owns 4,084,496 shares of the company’s stock valued at $1,322,682,000 after purchasing an additional 4,010,520 shares during the last quarter. Dynasty Wealth Management LLC grew its stake in AppLovin by 117,664.4% in the first quarter. Dynasty Wealth Management LLC now owns 2,702,694 shares of the company’s stock valued at $716,133,000 after purchasing an additional 2,700,399 shares during the last quarter. Finally, Norges Bank purchased a new position in AppLovin during the 4th quarter worth $828,138,000. 41.85% of the stock is currently owned by institutional investors.

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.