AppLovin (NASDAQ:APP) Trading Down 13.6% After Insider Selling

AppLovin Co. (NASDAQ:APP) dropped 13.6% during trading on Wednesday following insider selling activity. The stock traded as low as $288.92 and last traded at $325.82. Approximately 14,780,647 shares traded hands during trading, an increase of 155% from the average daily volume of 5,794,863 shares. The stock had previously closed at $377.06.

Specifically, 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 directly owns 2,914,492 shares in the company, valued at $1,230,527,667.32. This trade represents a 1.52 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CEO Arash Adam Foroughi sold 44,400 shares of the firm’s stock in a transaction dated Monday, February 24th. The stock was sold at an average price of $410.89, for a total value of $18,243,516.00. Following the completion of the transaction, the chief executive officer now directly owns 2,869,492 shares in the company, valued at $1,179,045,567.88. The trade was a 1.52 % decrease in their ownership of the stock. The disclosure for this sale can be found here.

Analyst Upgrades and Downgrades

APP has been the topic of a number of recent research reports. Benchmark raised their target price on AppLovin from $375.00 to $525.00 and gave the stock a “buy” rating in a report on Thursday, February 13th. Daiwa Capital Markets raised AppLovin from a “neutral” rating to an “outperform” rating and raised their price objective for the stock from $80.00 to $280.00 in a research note on Friday, November 8th. Bank of America boosted their price objective on AppLovin from $375.00 to $580.00 and gave the company a “buy” rating in a research note on Thursday, February 13th. Daiwa America upgraded shares of AppLovin from a “hold” rating to a “strong-buy” rating in a research note on Friday, November 8th. Finally, Piper Sandler lifted their price target on shares of AppLovin from $400.00 to $575.00 and gave the company an “overweight” rating in a report on Thursday, February 13th. Four investment analysts have rated the stock with a hold rating, fourteen have issued a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $442.18.

AppLovin Price Performance

The company has a debt-to-equity ratio of 3.70, a quick ratio of 2.41 and a current ratio of 2.41. The firm has a fifty day simple moving average of $367.70 and a two-hundred day simple moving average of $250.18. The firm has a market cap of $111.83 billion, a PE ratio of 71.77, a PEG ratio of 3.02 and a beta of 2.30.

AppLovin (NASDAQ:APP) last posted 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 net margin of 33.54% and a return on equity of 188.55%. Equities analysts predict that AppLovin Co. will post 6.87 EPS for the current fiscal year.

Institutional Trading of AppLovin

A number of large investors have recently made changes to their positions in APP. Sequoia Financial Advisors LLC purchased a new position in AppLovin in the third quarter worth about $281,000. Private Advisor Group LLC boosted its holdings in shares of AppLovin by 58.0% in the 3rd quarter. Private Advisor Group LLC now owns 11,291 shares of the company’s stock worth $1,474,000 after purchasing an additional 4,147 shares during the period. Mirae Asset Global Investments Co. Ltd. increased its position in shares of AppLovin by 1.2% during the 3rd quarter. Mirae Asset Global Investments Co. Ltd. now owns 13,627 shares of the company’s stock valued at $1,741,000 after purchasing an additional 157 shares during the last quarter. Arkadios Wealth Advisors purchased a new stake in AppLovin during the 3rd quarter valued at $292,000. Finally, Wealth Enhancement Advisory Services LLC lifted its position in AppLovin by 115.6% in the third quarter. Wealth Enhancement Advisory Services LLC now owns 103,132 shares of the company’s stock worth $13,464,000 after buying an additional 55,300 shares during 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.