AppLovin (NASDAQ:APP) Stock Price Down 1% - Here's What Happened

AppLovin Co. (NASDAQ:APP - Get Free Report) shares fell 1% during trading on Monday . The company traded as low as $307.07 and last traded at $315.44. 1,135,261 shares changed hands during mid-day trading, a decline of 73% from the average session volume of 4,140,390 shares. The stock had previously closed at $318.48.

Wall Street Analyst Weigh In

APP has been the subject of a number of research reports. JPMorgan Chase & Co. lifted their price objective on AppLovin from $200.00 to $325.00 and gave the stock a "neutral" rating in a research report on Friday. Daiwa Capital Markets raised shares of AppLovin from a "neutral" rating to an "outperform" rating and lifted their target price for the stock from $80.00 to $280.00 in a report on Friday, November 8th. Jefferies Financial Group lifted their price objective on AppLovin from $400.00 to $425.00 and gave the stock a "buy" rating in a research note on Wednesday, January 8th. Piper Sandler began coverage on AppLovin in a report on Wednesday, November 20th. They set an "overweight" rating and a $400.00 target price on the stock. Finally, BTIG Research increased their price target on shares of AppLovin from $202.00 to $291.00 and gave the company a "buy" rating in a research report on Thursday, November 7th. Four investment analysts have rated the stock with a hold rating, fourteen have given a buy rating and one has given a strong buy rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $338.06.

AppLovin Stock Performance

The company has a debt-to-equity ratio of 3.70, a quick ratio of 2.41 and a current ratio of 2.41. The firm has a market cap of $105.94 billion, a P/E ratio of 95.66, a P/E/G ratio of 4.17 and a beta of 2.29. The company's 50 day moving average is $321.54 and its 200 day moving average is $182.80.

AppLovin (NASDAQ:APP - Get Free Report) last issued its earnings results on Wednesday, November 6th. The company reported $1.25 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.92 by $0.33. The business had revenue of $1.20 billion during the quarter, compared to analysts' expectations of $1.13 billion. AppLovin had a return on equity of 122.24% and a net margin of 26.85%. The business's revenue for the quarter was up 38.6% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.30 EPS. As a group, equities analysts predict that AppLovin Co. will post 4.06 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Herald Y. Chen sold 99,000 shares of the company's stock in a transaction that occurred on Thursday, December 12th. The stock was sold at an average price of $329.50, for a total value of $32,620,500.00. Following the transaction, the director now owns 621,209 shares in the company, valued at approximately $204,688,365.50. This represents a 13.75 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Victoria Valenzuela sold 17,925 shares of the company's stock in a transaction on Tuesday, December 3rd. The shares were sold at an average price of $354.15, for a total value of $6,348,138.75. Following the transaction, the insider now directly owns 405,676 shares in the company, valued at $143,670,155.40. This represents a 4.23 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 888,867 shares of company stock valued at $284,773,062 over the last ninety days. 14.69% of the stock is owned by company insiders.

Institutional Investors Weigh In On AppLovin

Several hedge funds have recently added to or reduced their stakes in the company. FNY Investment Advisers LLC purchased a new stake in shares of AppLovin in the 4th quarter worth about $158,000. Signet Financial Management LLC purchased a new position in AppLovin in the 4th quarter worth approximately $317,000. PFW Advisors LLC purchased a new position in shares of AppLovin in the fourth quarter worth $216,000. Claro Advisors LLC bought a new position in AppLovin during the 4th quarter valued at about $415,000. Finally, Wedmont Private Capital lifted its position in AppLovin by 4.6% during the fourth quarter. Wedmont Private Capital now owns 6,322 shares of the company's stock valued at $2,013,000 after purchasing an additional 277 shares during the period. Institutional investors 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.