AppLovin (NASDAQ:APP) Trading Down 4.2% – Should You Sell?

AppLovin Co. (NASDAQ:APP) shares fell 4.2% on Friday . The stock traded as low as $326.69 and last traded at $332.13. 869,744 shares traded hands during trading, a decline of 81% from the average session volume of 4,590,855 shares. The stock had previously closed at $346.73.

Analyst Ratings Changes

A number of equities analysts recently weighed in on APP shares. Needham & Company LLC restated a “hold” rating on shares of AppLovin in a report on Thursday, November 7th. Wells Fargo & Company upped their price target on AppLovin from $250.00 to $360.00 and gave the company an “overweight” rating in a report on Wednesday, November 20th. Bank of America lifted their price objective on AppLovin from $252.00 to $375.00 and gave the stock a “buy” rating in a report on Monday, November 25th. UBS Group upgraded shares of AppLovin from a “neutral” rating to a “buy” rating and upped their target price for the company from $100.00 to $145.00 in a research note on Tuesday, September 17th. Finally, Benchmark reiterated a “sell” rating and issued a $66.00 price target on shares of AppLovin in a research note on Thursday, November 7th. One equities research analyst has rated the stock with a sell rating, four have issued a hold rating, thirteen have assigned a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat, AppLovin currently has a consensus rating of “Moderate Buy” and a consensus target price of $310.71.

AppLovin Stock Performance

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 cap of $112.48 billion, a PE ratio of 101.57, a PEG ratio of 4.17 and a beta of 2.28. The business’s 50 day moving average is $284.48 and its two-hundred day moving average is $162.60.

AppLovin (NASDAQ:APP) last released its earnings results on Wednesday, November 6th. The company reported $1.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.92 by $0.33. AppLovin had a return on equity of 122.24% and a net margin of 26.85%. The firm had revenue of $1.20 billion during the quarter, compared to analysts’ expectations of $1.13 billion. During the same quarter last year, the business posted $0.30 earnings per share. The firm’s revenue was up 38.6% on a year-over-year basis. On average, equities research analysts anticipate that AppLovin Co. will post 4.06 EPS for the current year.

Insider Activity at AppLovin

In other news, Director Dawson Alyssa Harvey sold 500 shares of the stock in a transaction that occurred on Friday, December 6th. The stock was sold at an average price of $406.27, for a total transaction of $203,135.00. Following the completion of the transaction, the director now directly owns 6,684 shares in the company, valued at approximately $2,715,508.68. This represents a 6.96 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Arash Adam Foroughi sold 1,676 shares of the business’s stock in a transaction on Tuesday, December 10th. The stock was sold at an average price of $356.39, for a total transaction of $597,309.64. Following the completion of the sale, the chief executive officer now owns 3,058,635 shares in the company, valued at $1,090,066,927.65. This represents a 0.05 % decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 888,867 shares of company stock valued at $284,773,062. Corporate insiders own 14.69% of the company’s stock.

Institutional Investors Weigh In On AppLovin

Several large investors have recently added to or reduced their stakes in the stock. Capital Performance Advisors LLP bought a new position in shares of AppLovin during the 3rd quarter valued at approximately $25,000. DT Investment Partners LLC bought a new position in AppLovin during the third quarter valued at $27,000. Meeder Asset Management Inc. purchased a new stake in shares of AppLovin in the third quarter valued at $27,000. Raleigh Capital Management Inc. bought a new stake in shares of AppLovin in the 3rd quarter worth about $29,000. Finally, Quest Partners LLC purchased a new position in shares of AppLovin during the 2nd quarter worth about $33,000. 41.85% of the stock is 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.