AppLovin (NASDAQ:APP) Stock Price Down 1.2% – Should You Sell?

AppLovin Co. (NASDAQ:APP) shares fell 1.2% on Friday . The stock traded as low as $332.48 and last traded at $335.40. 3,091,841 shares changed hands during mid-day trading, a decline of 49% from the average session volume of 6,011,883 shares. The stock had previously closed at $339.51.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on APP. HSBC set a $436.00 price target on shares of AppLovin and gave the company a “buy” rating in a report on Wednesday, April 23rd. Bank of America boosted their target price on AppLovin from $375.00 to $580.00 and gave the company a “buy” rating in a research note on Thursday, February 13th. FBN Securities assumed coverage on AppLovin in a report on Friday, March 28th. They issued an “outperform” rating and a $385.00 price target for the company. Needham & Company LLC reiterated a “hold” rating on shares of AppLovin in a report on Monday, April 21st. Finally, Loop Capital reissued a “buy” rating and set a $650.00 target price on shares of AppLovin in a research note on Friday, March 28th. One research analyst has rated the stock with a sell rating, three have given a hold rating, seventeen have assigned a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $433.85.

AppLovin Price 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 company has a fifty day moving average price of $275.55 and a two-hundred day moving average price of $311.59. The company has a market cap of $111.77 billion, a P/E ratio of 72.42, a PEG ratio of 3.02 and a beta of 2.39.

AppLovin (NASDAQ:APP) last posted its quarterly earnings results on Wednesday, May 7th. The company reported $1.67 earnings per share for the quarter, topping the consensus estimate of $1.45 by $0.22. AppLovin had a return on equity of 188.55% and a net margin of 33.54%. The firm had revenue of $1.48 billion for the quarter, compared to analyst estimates of $1.38 billion. During the same quarter in the previous year, the firm earned $0.67 EPS. The business’s quarterly revenue was up 40.3% on a year-over-year basis. On average, sell-side analysts anticipate that AppLovin Co. will post 6.87 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CTO Vasily Shikin sold 17,500 shares of the firm’s stock in a transaction that occurred on Monday, March 10th. The stock was sold at an average price of $241.65, for a total value of $4,228,875.00. Following the completion of the sale, the chief technology officer now directly owns 88,389 shares of the company’s stock, valued at $21,359,201.85. This trade represents a 16.53 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CEO Arash Adam Foroughi sold 45,000 shares of the business’s stock in a transaction that occurred on Friday, February 21st. The stock was sold at an average price of $422.21, for a total value of $18,999,450.00. Following the transaction, the chief executive officer now directly owns 2,914,492 shares in the company, valued at $1,230,527,667.32. The trade was a 1.52 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 306,900 shares of company stock valued at $106,401,841. 14.69% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of APP. Fuller & Thaler Asset Management Inc. acquired a new position in shares of AppLovin in the fourth quarter valued at approximately $25,000. GHP Investment Advisors Inc. bought a new stake in AppLovin in the 4th quarter valued at $25,000. Riverview Trust Co grew its holdings in AppLovin by 1,640.0% in the 4th quarter. Riverview Trust Co now owns 87 shares of the company’s stock valued at $28,000 after buying an additional 82 shares in the last quarter. Tucker Asset Management LLC acquired a new stake in shares of AppLovin during the fourth quarter worth $28,000. Finally, Hemington Wealth Management boosted its position in shares of AppLovin by 78.4% in the fourth quarter. Hemington Wealth Management now owns 91 shares of the company’s stock valued at $29,000 after acquiring an additional 40 shares during the period. 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.