AppLovin (NASDAQ:APP) Shares Down 3.7% – Should You Sell?

AppLovin Co. (NASDAQ:APP) was down 3.7% on Wednesday . The company traded as low as $317.50 and last traded at $317.50. Approximately 313,729 shares were traded during mid-day trading, a decline of 93% from the average daily volume of 4,449,475 shares. The stock had previously closed at $329.77.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on APP. UBS Group raised AppLovin from a “neutral” rating to a “buy” rating and lifted their price target for the company from $100.00 to $145.00 in a research note on Tuesday, September 17th. Needham & Company LLC restated a “hold” rating on shares of AppLovin in a research note on Thursday, November 7th. Wells Fargo & Company raised their price target on shares of AppLovin from $250.00 to $360.00 and gave the stock an “overweight” rating in a research note on Wednesday, November 20th. JPMorgan Chase & Co. boosted their price objective on shares of AppLovin from $160.00 to $200.00 and gave the stock a “neutral” rating in a research report on Thursday, November 7th. Finally, Oppenheimer raised their target price on shares of AppLovin from $260.00 to $480.00 and gave the company an “outperform” rating in a research report on Monday. One analyst has rated the stock with a sell rating, four have issued a hold rating, fourteen have assigned a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $265.57.

AppLovin Price Performance

The company has a 50 day moving average price of $193.60 and a 200 day moving average price of $122.53. The company has a current ratio of 2.41, a quick ratio of 2.41 and a debt-to-equity ratio of 3.70. The company has a market capitalization of $110.26 billion, a P/E ratio of 99.56, a P/E/G ratio of 3.94 and a beta of 1.86.

AppLovin (NASDAQ:APP) last released its quarterly earnings data on Wednesday, November 6th. The company reported $1.25 EPS for the quarter, beating 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 company’s quarterly revenue was up 38.6% on a year-over-year basis. During the same period in the previous year, the company earned $0.30 earnings per share. On average, equities analysts predict that AppLovin Co. will post 4.05 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Dawson Alyssa Harvey sold 1,500 shares of the business’s stock in a transaction dated Tuesday, September 10th. The shares were sold at an average price of $87.90, for a total value of $131,850.00. Following the completion of the sale, the director now owns 10,247 shares of the company’s stock, valued at approximately $900,711.30. The trade was a 12.77 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CTO Vasily Shikin sold 154,500 shares of the firm’s stock in a transaction dated Friday, September 6th. The stock was sold at an average price of $84.14, for a total transaction of $12,999,630.00. Following the transaction, the chief technology officer now directly owns 4,530,455 shares in the company, valued at approximately $381,192,483.70. This represents a 3.30 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 854,065 shares of company stock worth $233,072,408 over the last three months. Insiders own 14.69% of the company’s stock.

Institutional Investors Weigh In On AppLovin

A number of large investors have recently added to or reduced their stakes in the stock. Price T Rowe Associates Inc. MD lifted its position in shares of AppLovin by 122.2% during the 1st quarter. Price T Rowe Associates Inc. MD now owns 536,937 shares of the company’s stock valued at $37,168,000 after acquiring an additional 295,251 shares during the period. B. Riley Wealth Advisors Inc. acquired a new stake in AppLovin during the first quarter worth about $474,000. California State Teachers Retirement System grew its stake in AppLovin by 47.7% during the first quarter. California State Teachers Retirement System now owns 241,197 shares of the company’s stock worth $16,696,000 after buying an additional 77,914 shares in the last quarter. Tidal Investments LLC acquired a new position in shares of AppLovin in the 1st quarter valued at approximately $236,000. Finally, Comerica Bank lifted its holdings in shares of AppLovin by 2.7% during the 1st quarter. Comerica Bank now owns 175,883 shares of the company’s stock worth $12,175,000 after acquiring an additional 4,690 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.