AppLovin (NASDAQ:APP) Shares Down 8.4% on Analyst Downgrade

AppLovin Co. (NASDAQ:APP - Get Free Report) was down 8.4% on Friday after The Goldman Sachs Group lowered their price target on the stock from $500.00 to $335.00. The Goldman Sachs Group currently has a neutral rating on the stock. AppLovin traded as low as $239.00 and last traded at $241.75. Approximately 3,886,718 shares changed hands during trading, a decline of 32% from the average daily volume of 5,720,114 shares. The stock had previously closed at $263.83.

APP has been the subject of several other research reports. Benchmark increased their target price on AppLovin from $375.00 to $525.00 and gave the stock a "buy" rating in a research report on Thursday, February 13th. Needham & Company LLC reaffirmed a "hold" rating on shares of AppLovin in a research report on Monday, March 17th. Oppenheimer restated an "outperform" rating and issued a $560.00 price target on shares of AppLovin in a research note on Thursday, March 27th. JPMorgan Chase & Co. boosted their target price on AppLovin from $325.00 to $475.00 and gave the stock a "neutral" rating in a research report on Thursday, February 13th. Finally, Bank of America raised their price target on AppLovin from $375.00 to $580.00 and gave the stock a "buy" rating in a research note on Thursday, February 13th. One equities research analyst has rated the stock with a sell rating, three have given a hold rating, sixteen have issued a buy rating and one has issued a strong buy rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $424.84.

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Insider Buying and Selling at AppLovin

In related news, CTO Vasily Shikin sold 17,500 shares of AppLovin stock in a transaction on Monday, March 10th. The shares were sold at an average price of $241.65, for a total value 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. This trade represents a 16.53 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Arash Adam Foroughi sold 45,000 shares of the stock in a transaction dated Friday, February 21st. The shares were sold at an average price of $422.21, for a total transaction of $18,999,450.00. Following the completion of the transaction, the chief executive officer now owns 2,914,492 shares of the company's stock, valued at $1,230,527,667.32. This represents a 1.52 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 306,900 shares of company stock worth $106,401,841 in the last ninety days. 14.69% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Toronto Dominion Bank increased its stake in shares of AppLovin by 38.8% during the 3rd quarter. Toronto Dominion Bank now owns 25,174 shares of the company's stock valued at $3,286,000 after acquiring an additional 7,039 shares during the last quarter. Oxinas Partners Wealth Management LLC purchased a new position in shares of AppLovin during the 4th quarter valued at approximately $1,081,000. Virtu Financial LLC acquired a new position in AppLovin in the third quarter worth about $3,211,000. Franchise Capital Ltd acquired a new stake in shares of AppLovin during the fourth quarter worth $2,811,000. Finally, Barclays PLC grew its stake in AppLovin by 92.5% during the 3rd quarter. Barclays PLC now owns 318,992 shares of the company's stock worth $41,643,000 after buying an additional 153,248 shares during the last quarter. 41.85% of the stock is currently owned by institutional investors and hedge funds.

AppLovin Price Performance

The firm has a market capitalization of $81.77 billion, a P/E ratio of 52.98, a price-to-earnings-growth ratio of 3.02 and a beta of 2.39. The business has a fifty day moving average of $324.56 and a 200-day moving average of $295.32. The company has a debt-to-equity ratio of 3.70, a quick ratio of 2.41 and a current ratio of 2.41.

AppLovin (NASDAQ:APP - Get Free Report) last announced its quarterly earnings data on Wednesday, February 12th. The company reported $1.73 earnings per share (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%. On average, sell-side analysts forecast that AppLovin Co. will post 6.87 EPS for the current fiscal year.

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.