AppLovin (NASDAQ:APP) Shares Gap Down – What’s Next?

Shares of AppLovin Co. (NASDAQ:APP) gapped down before the market opened on Friday . The stock had previously closed at $318.24, but opened at $309.00. AppLovin shares last traded at $309.94, with a volume of 1,995,050 shares.

Analysts Set New Price Targets

A number of research firms recently commented on APP. Oppenheimer lifted their price target on shares of AppLovin from $180.00 to $260.00 and gave the stock an “outperform” rating in a research note on Thursday, November 7th. JPMorgan Chase & Co. lifted their price target on shares of AppLovin from $160.00 to $200.00 and gave the stock a “neutral” rating in a research note on Thursday, November 7th. The Goldman Sachs Group lowered shares of AppLovin from a “buy” rating to a “neutral” rating and lifted their price objective for the company from $103.00 to $150.00 in a report on Monday, October 14th. Daiwa Capital Markets upgraded shares of AppLovin from a “neutral” rating to an “outperform” rating and lifted their price objective for the company from $80.00 to $280.00 in a report on Friday, November 8th. Finally, Piper Sandler began coverage on shares of AppLovin in a report on Wednesday. They set an “overweight” rating and a $400.00 price objective for the company. One research analyst has rated the stock with a sell rating, four have issued a hold rating, fourteen have given a buy rating and one has given a strong buy rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $222.96.

AppLovin Price Performance

The stock has a market cap of $109.90 billion, a price-to-earnings ratio of 96.67, a price-to-earnings-growth ratio of 3.95 and a beta of 1.86. The stock’s 50 day moving average price is $176.89 and its two-hundred day moving average price is $115.35. The company has a quick ratio of 2.41, a current ratio of 2.41 and a debt-to-equity ratio of 3.70.

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 analysts’ consensus estimates of $0.92 by $0.33. The firm had revenue of $1.20 billion for the quarter, compared to analyst estimates of $1.13 billion. AppLovin had a net margin of 26.85% and a return on equity of 122.24%. The business’s quarterly revenue was up 38.6% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.30 earnings per share. Equities research analysts forecast that AppLovin Co. will post 4.06 EPS for the current fiscal year.

Insider Activity at AppLovin

In other AppLovin news, CTO Vasily Shikin sold 5,500 shares of the stock in a transaction on Monday, September 9th. The shares were sold at an average price of $86.04, for a total transaction of $473,220.00. Following the transaction, the chief technology officer now directly owns 4,536,447 shares of the company’s stock, valued at $390,315,899.88. This trade represents a 0.12 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Dawson Alyssa Harvey sold 1,500 shares of the stock in a transaction on Tuesday, September 10th. The shares were sold at an average price of $87.90, for a total transaction of $131,850.00. Following the transaction, the director now directly owns 10,247 shares in the company, valued at approximately $900,711.30. The trade was a 12.77 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 221,376 shares of company stock worth $30,737,619. 14.69% of the stock is owned by company insiders.

Hedge Funds Weigh In On AppLovin

Hedge funds and other institutional investors have recently modified their holdings of the business. Capital Performance Advisors LLP purchased a new position in shares of AppLovin in the third quarter worth about $25,000. DT Investment Partners LLC purchased a new position in shares of AppLovin in the third quarter worth about $27,000. Meeder Asset Management Inc. purchased a new position in shares of AppLovin in the third quarter worth about $27,000. Raleigh Capital Management Inc. purchased a new position in shares of AppLovin in the third quarter worth about $29,000. Finally, Quest Partners LLC purchased a new position in shares of AppLovin in the second quarter worth about $33,000. 41.85% of the stock is owned by hedge funds and other 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.