AppLovin (NASDAQ:APP) Shares Gap Down – Time to Sell?

AppLovin Co. (NASDAQ:APP) shares gapped down before the market opened on Monday . The stock had previously closed at $270.48, but opened at $246.53. AppLovin shares last traded at $243.19, with a volume of 3,162,873 shares trading hands.

Analysts Set New Price Targets

Several research analysts have weighed in on the company. Piper Sandler upped their price target on AppLovin from $400.00 to $575.00 and gave the stock an “overweight” rating in a research note on Thursday, February 13th. UBS Group boosted their target price on shares of AppLovin from $440.00 to $630.00 and gave the stock a “buy” rating in a report on Thursday, February 13th. JPMorgan Chase & Co. raised their target price on shares of AppLovin from $325.00 to $475.00 and gave the company a “neutral” rating in a research note on Thursday, February 13th. Citigroup boosted their price target on shares of AppLovin from $460.00 to $600.00 and gave the stock a “buy” rating in a research note on Wednesday, February 19th. Finally, Stifel Nicolaus increased their price objective on shares of AppLovin from $250.00 to $435.00 and gave the company a “buy” rating in a report on Thursday, December 5th. One research analyst has rated the stock with a sell rating, four have given a hold rating, fourteen have issued a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $438.28.

AppLovin Stock Performance

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 business has a 50 day moving average price of $360.57 and a 200 day moving average price of $265.20. The stock has a market cap of $87.63 billion, a P/E ratio of 56.78, a PEG ratio of 3.02 and a beta of 2.33.

AppLovin (NASDAQ:APP) last announced its quarterly earnings data on Wednesday, February 12th. The company reported $1.73 EPS for the quarter, beating the consensus estimate of $1.12 by $0.61. AppLovin had a return on equity of 188.55% and a net margin of 33.54%. As a group, sell-side analysts expect that AppLovin Co. will post 6.87 EPS for the current year.

Insider Transactions at AppLovin

In related news, Director Herald Y. Chen sold 200,000 shares of the business’s stock in a transaction that occurred on Friday, February 28th. The stock was sold at an average price of $324.65, for a total value of $64,930,000.00. Following the completion of the sale, the director now owns 621,209 shares in the company, valued at approximately $201,675,501.85. The trade was a 24.35 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Arash Adam Foroughi sold 45,000 shares of the firm’s stock in a transaction on Friday, February 21st. The stock was sold at an average price of $422.21, for a total value of $18,999,450.00. Following the transaction, the chief executive officer now owns 2,914,492 shares in the company, valued at $1,230,527,667.32. The trade was a 1.52 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 404,371 shares of company stock worth $139,793,507. Insiders own 14.69% of the company’s stock.

Institutional Trading of AppLovin

Institutional investors and hedge funds have recently made changes to their positions in the company. Capital Performance Advisors LLP purchased a new position in AppLovin during the 3rd quarter valued at about $25,000. GHP Investment Advisors Inc. bought a new position in shares of AppLovin during the fourth quarter valued at approximately $25,000. Fuller & Thaler Asset Management Inc. purchased a new position in AppLovin during the fourth quarter valued at approximately $25,000. Meeder Asset Management Inc. purchased a new position in AppLovin during the third quarter valued at approximately $27,000. Finally, Riverview Trust Co raised its stake in AppLovin by 1,640.0% in the fourth quarter. Riverview Trust Co now owns 87 shares of the company’s stock worth $28,000 after buying an additional 82 shares in the last quarter. 41.85% of the stock is currently 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.