AppLovin (NASDAQ:APP) Trading Down 3.7% – Should You Sell?

AppLovin Co. (NASDAQ:APP)’s stock price was down 3.7% during mid-day trading on Wednesday . The stock traded as low as $317.50 and last traded at $317.50. Approximately 313,729 shares changed hands during mid-day trading, a decline of 93% from the average daily volume of 4,449,475 shares. The stock had previously closed at $329.77.

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on the company. Oppenheimer boosted their price target on AppLovin from $260.00 to $480.00 and gave the stock an “outperform” rating in a research report on Monday. UBS Group raised AppLovin from a “neutral” rating to a “buy” rating and raised their price target for the company from $100.00 to $145.00 in a report on Tuesday, September 17th. Wells Fargo & Company upped their price objective on shares of AppLovin from $250.00 to $360.00 and gave the company an “overweight” rating in a report on Wednesday, November 20th. Bank of America raised their target price on shares of AppLovin from $252.00 to $375.00 and gave the stock a “buy” rating in a research note on Monday. Finally, The Goldman Sachs Group lowered shares of AppLovin from a “buy” rating to a “neutral” rating and upped their price target for the company from $103.00 to $150.00 in a research note on Monday, October 14th. One investment analyst has rated the stock with a sell rating, four have assigned a hold rating, fourteen have issued a buy rating and one has given a strong buy rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $265.57.

AppLovin Trading Down 2.6 %

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 firm’s 50-day moving average is $185.37 and its 200 day moving average is $119.37. The firm has a market capitalization of $107.79 billion, a price-to-earnings ratio of 99.93, a P/E/G ratio of 3.94 and a beta of 1.86.

AppLovin (NASDAQ:APP) last released its quarterly 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 net margin of 26.85% and a return on equity of 122.24%. The firm had revenue of $1.20 billion during the quarter, compared to analyst estimates of $1.13 billion. During the same quarter last year, the business earned $0.30 EPS. The company’s revenue was up 38.6% compared to the same quarter last year. On average, equities analysts predict that AppLovin Co. will post 4.05 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Dawson Alyssa Harvey sold 1,500 shares of the company’s stock in a transaction that occurred on Tuesday, September 10th. The stock was 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 of the company’s stock, valued at approximately $900,711.30. This represents a 12.77 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Craig Scott Billings sold 18,000 shares of the stock in a transaction that occurred on Thursday, November 21st. The stock was sold at an average price of $318.94, for a total value of $5,740,920.00. Following the completion of the transaction, the director now owns 2,987 shares in the company, valued at approximately $952,673.78. The trade was a 85.77 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 854,065 shares of company stock worth $233,072,408. Company insiders own 14.69% of the company’s stock.

Hedge Funds Weigh In On AppLovin

A number of institutional investors have recently modified their holdings of the company. Capital Performance Advisors LLP bought a new position in shares of AppLovin in the third quarter valued at approximately $25,000. Meeder Asset Management Inc. bought a new position in AppLovin during the 3rd quarter valued at $27,000. DT Investment Partners LLC purchased a new position in AppLovin during the 3rd quarter worth $27,000. Raleigh Capital Management Inc. bought a new stake in shares of AppLovin in the 3rd quarter worth $29,000. Finally, HM Payson & Co. raised its holdings in shares of AppLovin by 50.0% in the third quarter. HM Payson & Co. now owns 300 shares of the company’s stock valued at $39,000 after purchasing an additional 100 shares during the last quarter. 41.85% of the stock is owned by institutional investors and hedge funds.

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.