AppLovin (NASDAQ:APP) Shares Down 5% - What's Next?

AppLovin Co. (NASDAQ:APP - Get Free Report)'s share price was down 5% on Tuesday . The stock traded as low as $320.47 and last traded at $326.81. Approximately 1,364,616 shares traded hands during mid-day trading, a decline of 70% from the average daily volume of 4,586,882 shares. The stock had previously closed at $343.96.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on APP shares. Daiwa Capital Markets upgraded AppLovin from a "neutral" rating to an "outperform" rating and raised their price target for the stock from $80.00 to $280.00 in a research note on Friday, November 8th. Citigroup raised their target price on shares of AppLovin from $335.00 to $460.00 and gave the stock a "buy" rating in a research report on Thursday, December 5th. Benchmark reiterated a "sell" rating and issued a $66.00 price target on shares of AppLovin in a research report on Thursday, November 7th. Jefferies Financial Group raised their price objective on shares of AppLovin from $270.00 to $400.00 and gave the stock a "buy" rating in a research report on Tuesday, November 26th. Finally, JPMorgan Chase & Co. upped their target price on shares of AppLovin from $160.00 to $200.00 and gave the company a "neutral" rating in a report on Thursday, November 7th. One analyst has rated the stock with a sell rating, four have given a hold rating, fourteen have given a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $296.40.

AppLovin Price Performance

The firm has a market cap of $113.39 billion, a PE ratio of 102.39, a P/E/G ratio of 4.17 and a beta of 2.28. The stock's fifty day moving average price is $253.97 and its 200-day moving average price is $148.87. 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 issued its earnings results on Wednesday, November 6th. The company reported $1.25 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.92 by $0.33. The company had revenue of $1.20 billion during the quarter, compared to analysts' expectations of $1.13 billion. AppLovin had a net margin of 26.85% and a return on equity of 122.24%. The firm's quarterly revenue was up 38.6% compared to the same quarter last year. During the same period last year, the company posted $0.30 earnings per share. As a group, equities analysts forecast that AppLovin Co. will post 4.06 EPS for the current fiscal year.

Insider Transactions at AppLovin

In related news, CEO Arash Adam Foroughi sold 1,676 shares of the stock in a transaction on Tuesday, December 10th. The stock was sold at an average price of $356.39, for a total transaction of $597,309.64. Following the sale, the chief executive officer now owns 3,058,635 shares of the company's stock, valued at $1,090,066,927.65. This trade represents a 0.05 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Herald Y. Chen sold 99,000 shares of the business's stock in a transaction dated Thursday, December 12th. The shares were sold at an average price of $329.50, for a total transaction of $32,620,500.00. Following the completion of the transaction, the director now directly owns 621,209 shares of the company's stock, valued at $204,688,365.50. The trade was a 13.75 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 872,896 shares of company stock valued at $279,773,021 in the last 90 days. 14.69% of the stock is currently owned by insiders.

Institutional Investors Weigh In On AppLovin

Hedge funds and other institutional investors have recently modified their holdings of the company. Capital Performance Advisors LLP purchased a new position in shares of AppLovin in the 3rd quarter worth $25,000. DT Investment Partners LLC acquired a new position in shares of AppLovin in the 3rd quarter valued at about $27,000. Meeder Asset Management Inc. purchased a new stake in shares of AppLovin during the 3rd quarter worth about $27,000. Raleigh Capital Management Inc. purchased a new position in AppLovin in the third quarter valued at approximately $29,000. Finally, Quest Partners LLC acquired a new position in AppLovin during the second quarter valued at approximately $33,000. 41.85% of the stock is currently owned by hedge funds and other institutional investors.

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.