AppLovin (NASDAQ:APP) Trading Down 8.9% - Here's What Happened

Shares of AppLovin Co. (NASDAQ:APP - Get Free Report) were down 8.9% during trading on Thursday . The stock traded as low as $287.03 and last traded at $289.76. Approximately 4,303,958 shares traded hands during mid-day trading, a decline of 13% from the average daily volume of 4,936,655 shares. The stock had previously closed at $318.00.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on APP shares. Oppenheimer reissued an "outperform" rating and issued a $560.00 price target (up previously from $480.00) on shares of AppLovin in a research report on Thursday, February 13th. Macquarie raised their price objective on shares of AppLovin from $270.00 to $450.00 and gave the company an "outperform" rating in a report on Friday, December 6th. Needham & Company LLC restated a "hold" rating on shares of AppLovin in a report on Thursday, February 13th. Piper Sandler raised their price objective on shares of AppLovin from $400.00 to $575.00 and gave the company an "overweight" rating in a report on Thursday, February 13th. Finally, Wells Fargo & Company set a $538.00 price objective on shares of AppLovin and gave the company an "overweight" rating in a report on Thursday, February 27th. One analyst has rated the stock with a sell rating, four have given a hold rating, fourteen have issued a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $452.29.

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AppLovin Trading Up 4.2 %

The firm has a market cap of $90.77 billion, a PE ratio of 59.58, a P/E/G ratio of 3.02 and a beta of 2.33. The company's fifty day moving average price is $363.84 and its two-hundred day moving average price is $261.76. The company has a quick ratio of 2.41, a current ratio of 2.41 and a debt-to-equity ratio of 3.70.

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

Insider Buying and Selling

In related news, Director Herald Y. Chen sold 200,000 shares of the business's stock in a transaction dated Friday, February 28th. The shares were sold at an average price of $324.65, for a total transaction of $64,930,000.00. Following the sale, the director now owns 621,209 shares of the company's stock, valued at approximately $201,675,501.85. The trade was a 24.35 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Arash Adam Foroughi sold 45,000 shares of the business's stock in a transaction dated Friday, February 21st. The stock was sold at an average price of $422.21, for a total transaction of $18,999,450.00. Following the sale, the chief executive officer now directly owns 2,914,492 shares in the company, valued at approximately $1,230,527,667.32. This represents a 1.52 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 406,447 shares of company stock valued at $140,537,281. Corporate insiders own 14.69% of the company's stock.

Hedge Funds Weigh In On AppLovin

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. JFS Wealth Advisors LLC raised its position in AppLovin by 38.2% during the fourth quarter. JFS Wealth Advisors LLC now owns 105 shares of the company's stock worth $34,000 after acquiring an additional 29 shares during the last quarter. HighPoint Advisor Group LLC raised its position in AppLovin by 1.7% during the fourth quarter. HighPoint Advisor Group LLC now owns 1,822 shares of the company's stock worth $590,000 after acquiring an additional 31 shares during the last quarter. Quadrant Capital Group LLC raised its position in AppLovin by 6.7% during the fourth quarter. Quadrant Capital Group LLC now owns 526 shares of the company's stock worth $170,000 after acquiring an additional 33 shares during the last quarter. Forum Financial Management LP raised its position in AppLovin by 0.9% during the fourth quarter. Forum Financial Management LP now owns 3,776 shares of the company's stock worth $1,223,000 after acquiring an additional 33 shares during the last quarter. Finally, Truvestments Capital LLC raised its position in AppLovin by 0.7% during the fourth quarter. Truvestments Capital LLC now owns 5,236 shares of the company's stock worth $1,696,000 after acquiring an additional 38 shares during the last quarter. Institutional investors and hedge funds own 41.85% of the company's stock.

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.