AppLovin (NASDAQ:APP) Shares Down 13.5% – Time to Sell?

Shares of AppLovin Co. (NASDAQ:APP) fell 13.5% during trading on Thursday . The stock traded as low as $249.08 and last traded at $251.32. 3,863,489 shares traded hands during mid-day trading, a decline of 30% from the average session volume of 5,535,480 shares. The stock had previously closed at $290.39.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on the company. The Goldman Sachs Group raised their price objective on AppLovin from $220.00 to $335.00 and gave the company a “neutral” rating in a research report on Monday, January 27th. Citigroup upped their price target on shares of AppLovin from $460.00 to $600.00 and gave the company a “buy” rating in a research note on Wednesday, February 19th. Oppenheimer reissued an “outperform” rating and issued a $560.00 price objective on shares of AppLovin in a research note on Thursday, March 27th. JPMorgan Chase & Co. increased their price target on shares of AppLovin from $325.00 to $475.00 and gave the company a “neutral” rating in a report on Thursday, February 13th. Finally, Piper Sandler lifted their price target on AppLovin from $400.00 to $575.00 and gave the stock an “overweight” rating in a research report on Thursday, February 13th. One equities research analyst has rated the stock with a sell rating, four have issued a hold rating, fifteen have given a buy rating and one has given a strong buy rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $435.47.

AppLovin Stock Down 16.3 %

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 has a market cap of $74.58 billion, a PE ratio of 48.32, a P/E/G ratio of 3.02 and a beta of 2.39. The business’s 50-day simple moving average is $342.89 and its 200 day simple moving average is $287.27.

AppLovin (NASDAQ:APP) last issued its quarterly earnings data on Wednesday, February 12th. The company reported $1.73 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.12 by $0.61. AppLovin had a net margin of 33.54% and a return on equity of 188.55%. As a group, equities research analysts expect that AppLovin Co. will post 6.87 earnings per share for the current year.

Insider Buying and Selling

In related news, CTO Vasily Shikin sold 17,500 shares of the business’s stock in a transaction on Monday, March 10th. The stock was sold at an average price of $241.65, for a total transaction of $4,228,875.00. Following the transaction, the chief technology officer now directly owns 88,389 shares in the company, valued at $21,359,201.85. The trade was a 16.53 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Herald Y. Chen sold 200,000 shares of the stock in a transaction dated Friday, February 28th. The shares were sold at an average price of $324.65, for a total value of $64,930,000.00. Following the completion of the sale, the director now owns 621,209 shares of the company’s stock, valued at approximately $201,675,501.85. This trade represents a 24.35 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 306,900 shares of company stock worth $106,401,841 in the last three months. 14.69% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Benjamin Edwards Inc. acquired a new position in shares of AppLovin in the 3rd quarter valued at $364,000. IHT Wealth Management LLC purchased a new stake in AppLovin during the 3rd quarter valued at about $316,000. Royal London Asset Management Ltd. acquired a new position in shares of AppLovin in the third quarter valued at about $13,052,000. Quarry LP raised its stake in shares of AppLovin by 121.2% in the third quarter. Quarry LP now owns 1,157 shares of the company’s stock worth $151,000 after purchasing an additional 634 shares during the last quarter. Finally, Quantinno Capital Management LP lifted its holdings in shares of AppLovin by 146.6% during the third quarter. Quantinno Capital Management LP now owns 6,412 shares of the company’s stock worth $837,000 after purchasing an additional 3,812 shares during the period. Hedge funds and other institutional investors own 41.85% of the company’s stock.

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.