AppLovin (NASDAQ:APP) Shares Down 10.2% - Here's What Happened

AppLovin Co. (NASDAQ:APP - Get Free Report) shares dropped 10.2% during mid-day trading on Monday . The stock traded as low as $238.31 and last traded at $242.92. Approximately 5,252,961 shares traded hands during trading, an increase of 4% from the average daily volume of 5,034,170 shares. The stock had previously closed at $270.48.

Analyst Ratings Changes

APP has been the topic of several recent research reports. JPMorgan Chase & Co. lifted their target price on shares of AppLovin from $325.00 to $475.00 and gave the stock a "neutral" rating in a research note on Thursday, February 13th. Stifel Nicolaus boosted their price objective on shares of AppLovin from $250.00 to $435.00 and gave the company a "buy" rating in a report on Thursday, December 5th. Citigroup boosted their price target on shares of AppLovin from $460.00 to $600.00 and gave the stock a "buy" rating in a research note on Wednesday, February 19th. Macquarie boosted their price target on shares of AppLovin from $270.00 to $450.00 and gave the stock an "outperform" rating in a research note on Friday, December 6th. Finally, Wells Fargo & Company set a $538.00 price objective on AppLovin and gave the stock an "overweight" rating in a research report on Thursday, February 27th. One analyst has rated the stock with a sell rating, four have issued 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, AppLovin has a consensus rating of "Moderate Buy" and an average price target of $438.28.

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AppLovin Price Performance

The company has a debt-to-equity ratio of 3.70, a current ratio of 2.41 and a quick ratio of 2.41. The company has a 50 day moving average price of $361.89 and a 200 day moving average price of $264.02. The firm has a market cap of $84.18 billion, a PE ratio of 55.41, a PEG ratio of 3.02 and a beta of 2.33.

AppLovin (NASDAQ:APP - Get Free Report) last released its quarterly earnings results on Wednesday, February 12th. The company reported $1.73 EPS for the quarter, topping the consensus estimate of $1.12 by $0.61. AppLovin had a return on equity of 188.55% and a net margin of 33.54%. Sell-side analysts expect that AppLovin Co. will post 6.87 EPS for the current fiscal year.

Insiders Place Their Bets

In other AppLovin news, insider Victoria Valenzuela sold 15,971 shares of the company's stock in a transaction on Thursday, December 19th. The stock was sold at an average price of $313.07, for a total value of $5,000,040.97. Following the sale, the insider now owns 372,205 shares of the company's stock, valued at approximately $116,526,219.35. This represents a 4.11 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Herald Y. Chen sold 99,000 shares of the stock in a transaction on Thursday, December 12th. The shares were sold at an average price of $329.50, for a total value of $32,620,500.00. Following the sale, the director now directly owns 621,209 shares in the company, valued at approximately $204,688,365.50. The trade was a 13.75 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 404,371 shares of company stock worth $139,793,507. 14.69% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On AppLovin

A number of large investors have recently modified their holdings of APP. Farther Finance Advisors LLC grew its position in shares of AppLovin by 150.6% in the 3rd quarter. Farther Finance Advisors LLC now owns 1,020 shares of the company's stock worth $133,000 after acquiring an additional 613 shares in the last quarter. Capital Performance Advisors LLP acquired a new position in shares of AppLovin in the 3rd quarter worth approximately $25,000. Assetmark Inc. grew its position in shares of AppLovin by 131.8% in the 3rd quarter. Assetmark Inc. now owns 9,637 shares of the company's stock worth $1,258,000 after acquiring an additional 5,480 shares in the last quarter. Atria Investments Inc acquired a new position in AppLovin during the 3rd quarter valued at approximately $574,000. Finally, Legacy Capital Wealth Partners LLC acquired a new position in AppLovin during the 3rd quarter valued at approximately $268,000. 41.85% of the stock is currently owned by hedge funds and other 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.