AppLovin (NASDAQ:APP) Trading Down 0.6% - Should You Sell?

AppLovin Co. (NASDAQ:APP - Get Free Report) was down 0.6% on Thursday . The company traded as low as $361.27 and last traded at $363.97. Approximately 1,737,057 shares changed hands during trading, a decline of 57% from the average daily volume of 4,007,993 shares. The stock had previously closed at $366.34.

Analyst Ratings Changes

Several research firms recently weighed in on APP. Daiwa Capital Markets raised shares of AppLovin from a "neutral" rating to an "outperform" rating and upped their price objective for the stock from $80.00 to $280.00 in a report on Friday, November 8th. Needham & Company LLC reiterated a "hold" rating on shares of AppLovin in a research note on Thursday, November 7th. Wedbush reaffirmed an "outperform" rating and set a $270.00 price target (up from $170.00) on shares of AppLovin in a research note on Thursday, November 7th. Loop Capital boosted their price objective on AppLovin from $385.00 to $450.00 and gave the stock a "buy" rating in a research note on Monday, December 16th. Finally, Piper Sandler began coverage on shares of AppLovin in a report on Wednesday, November 20th. They issued an "overweight" rating and a $400.00 target price on the stock. Four research analysts have rated the stock with a hold rating, fourteen have assigned a buy rating and one has issued a strong buy rating to the company's stock. According to MarketBeat.com, AppLovin currently has a consensus rating of "Moderate Buy" and an average price target of $366.29.

AppLovin Price Performance

The company has a market capitalization of $122.66 billion, a PE ratio of 110.76, a P/E/G ratio of 2.96 and a beta of 2.29. The stock has a 50 day moving average price of $339.92 and a two-hundred day moving average price of $204.14. 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 released its quarterly earnings results on Wednesday, November 6th. The company reported $1.25 earnings per share for the quarter, beating analysts' consensus estimates of $0.92 by $0.33. The business had revenue of $1.20 billion for the quarter, compared to the consensus estimate of $1.13 billion. AppLovin had a net margin of 26.85% and a return on equity of 122.24%. AppLovin's revenue for the quarter was up 38.6% on a year-over-year basis. During the same quarter last year, the firm earned $0.30 EPS. Equities analysts forecast that AppLovin Co. will post 4.06 earnings per share for the current year.

Insider Activity

In related news, CEO Arash Adam Foroughi sold 1,676 shares of the business's stock in a transaction dated Tuesday, December 10th. The stock was sold at an average price of $356.39, for a total transaction of $597,309.64. Following the completion of the transaction, the chief executive officer now owns 3,058,635 shares of the company's stock, valued at approximately $1,090,066,927.65. The trade was a 0.05 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Victoria Valenzuela sold 15,971 shares of the firm's stock in a transaction that occurred on Thursday, December 19th. The shares were sold at an average price of $313.07, for a total value of $5,000,040.97. Following the completion of the sale, the insider now directly owns 372,205 shares in the company, valued at $116,526,219.35. This trade represents a 4.11 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 888,867 shares of company stock valued at $284,773,062. Insiders own 14.69% of the company's stock.

Hedge Funds Weigh In On AppLovin

Several large investors have recently bought and sold shares of APP. GHP Investment Advisors Inc. acquired a new position in shares of AppLovin during the fourth quarter valued at about $25,000. Hemington Wealth Management raised its holdings in AppLovin by 78.4% in the 4th quarter. Hemington Wealth Management now owns 91 shares of the company's stock valued at $29,000 after acquiring an additional 40 shares in the last quarter. Fifth Third Bancorp lifted its position in shares of AppLovin by 172.2% in the 4th quarter. Fifth Third Bancorp now owns 98 shares of the company's stock worth $32,000 after acquiring an additional 62 shares during the period. Bogart Wealth LLC acquired a new stake in shares of AppLovin during the 4th quarter worth approximately $37,000. Finally, MassMutual Private Wealth & Trust FSB grew its holdings in shares of AppLovin by 139.1% during the 4th quarter. MassMutual Private Wealth & Trust FSB now owns 153 shares of the company's stock worth $50,000 after purchasing an additional 89 shares in the last quarter. 41.85% of the stock is currently 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.

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