AppLovin (NASDAQ:APP) Shares Down 8.9% – Here’s What Happened

AppLovin Co. (NASDAQ:APP)’s stock price dropped 8.9% during trading on Thursday . The stock traded as low as $287.03 and last traded at $289.76. Approximately 4,303,958 shares traded hands during trading, a decline of 13% from the average daily volume of 4,936,655 shares. The stock had previously closed at $318.00.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on the company. Stifel Nicolaus increased their price target on AppLovin from $250.00 to $435.00 and gave the company a “buy” rating in a research note on Thursday, December 5th. The Goldman Sachs Group upped their price objective on AppLovin from $220.00 to $335.00 and gave the company a “neutral” rating in a report on Monday, January 27th. Loop Capital lifted their target price on AppLovin from $450.00 to $650.00 and gave the stock a “buy” rating in a report on Thursday, February 20th. Wells Fargo & Company set a $538.00 price target on shares of AppLovin and gave the company an “overweight” rating in a report on Thursday, February 27th. Finally, Needham & Company LLC reaffirmed a “hold” rating on shares of AppLovin in a research note on Thursday, February 13th. Four investment analysts have rated the stock with a hold rating, fourteen have issued a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $452.29.

AppLovin Stock Down 18.4 %

The stock has a market capitalization of $87.04 billion, a price-to-earnings ratio of 57.13, a price-to-earnings-growth ratio of 3.02 and a beta of 2.30. 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 firm has a 50-day moving average of $366.88 and a two-hundred day moving average of $259.26.

AppLovin (NASDAQ:APP) last issued its earnings results on Wednesday, February 12th. The company reported $1.73 earnings per share for the quarter, beating analysts’ consensus estimates 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 anticipate that AppLovin Co. will post 6.87 earnings per share for the current year.

Insider Activity at AppLovin

In other AppLovin news, CFO Herald Y. Chen sold 400 shares of the company’s stock in a transaction that occurred on Monday, December 9th. The stock was sold at an average price of $366.16, for a total transaction of $146,464.00. Following the completion of the sale, the chief financial officer now owns 207,649 shares of the company’s stock, valued at $76,032,757.84. This represents a 0.19 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Arash Adam Foroughi sold 1,676 shares of AppLovin stock in a transaction that occurred on Tuesday, December 10th. The shares were sold at an average price of $356.39, for a total transaction of $597,309.64. Following the completion of the transaction, the chief executive officer now directly owns 3,058,635 shares in the company, valued at approximately $1,090,066,927.65. This represents a 0.05 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 406,947 shares of company stock valued at $140,740,416. 14.69% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Capital Performance Advisors LLP acquired a new stake in AppLovin in the 3rd quarter valued at approximately $25,000. GHP Investment Advisors Inc. bought a new position in AppLovin during the fourth quarter worth $25,000. Fuller & Thaler Asset Management Inc. acquired a new position in AppLovin during the 4th quarter valued at $25,000. Meeder Asset Management Inc. bought a new stake in AppLovin in the 3rd quarter valued at $27,000. Finally, Riverview Trust Co grew its position in AppLovin by 1,640.0% in the 4th quarter. Riverview Trust Co now owns 87 shares of the company’s stock worth $28,000 after purchasing an additional 82 shares during the last quarter. 41.85% of the stock is currently owned by institutional investors and hedge funds.

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.