AppLovin (NASDAQ:APP) Shares Down 3.6% – Should You Sell?

Shares of AppLovin Corporation (NASDAQ:APP) fell 3.6% during mid-day trading on Tuesday . The stock traded as low as $368.18 and last traded at $376.38. 5,166,641 shares changed hands during trading, a decline of 26% from the average session volume of 6,977,423 shares. The stock had previously closed at $390.55.

Analyst Ratings Changes

Several research firms recently weighed in on APP. Needham & Company LLC restated a “buy” rating and issued a $700.00 price target on shares of AppLovin in a research note on Thursday, February 12th. JPMorgan Chase & Co. raised their price target on AppLovin from $425.00 to $650.00 and gave the company a “neutral” rating in a report on Thursday, November 6th. Citigroup dropped their price target on shares of AppLovin from $820.00 to $710.00 and set a “buy” rating on the stock in a research note on Thursday, February 12th. Wells Fargo & Company dropped their target price on shares of AppLovin from $735.00 to $543.00 and set an “overweight” rating on the stock in a research note on Thursday, February 12th. Finally, Wedbush lifted their price objective on AppLovin from $465.00 to $640.00 and gave the stock an “outperform” rating in a report on Thursday, February 12th. Twenty equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $651.77.

AppLovin Price Performance

The company has a market capitalization of $127.20 billion, a P/E ratio of 40.60, a price-to-earnings-growth ratio of 1.25 and a beta of 2.49. The company has a debt-to-equity ratio of 1.65, a current ratio of 3.32 and a quick ratio of 3.25. The firm’s 50-day moving average is $590.55 and its 200-day moving average is $573.26.

AppLovin (NASDAQ:APP) last released its earnings results on Wednesday, February 11th. The company reported $3.24 EPS for the quarter, topping analysts’ consensus estimates of $2.89 by $0.35. The company had revenue of $1.66 billion for the quarter, compared to analysts’ expectations of $1.61 billion. AppLovin had a net margin of 57.42% and a return on equity of 245.64%. The firm’s revenue was up 66.0% compared to the same quarter last year. During the same quarter last year, the business earned $1.73 EPS. Analysts predict that AppLovin Corporation will post 6.87 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Arash Adam Foroughi sold 17,112 shares of AppLovin stock in a transaction that occurred on Friday, November 21st. The stock was sold at an average price of $502.48, for a total transaction of $8,598,437.76. Following the sale, the chief executive officer owned 2,584,049 shares of the company’s stock, valued at approximately $1,298,432,941.52. This trade represents a 0.66% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Victoria Valenzuela sold 7,609 shares of the company’s stock in a transaction that occurred on Thursday, December 18th. The stock was sold at an average price of $657.13, for a total value of $5,000,102.17. Following the completion of the transaction, the insider owned 277,110 shares of the company’s stock, valued at $182,097,294.30. The trade was a 2.67% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 187,786 shares of company stock worth $100,914,925. 13.66% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On AppLovin

Several hedge funds have recently modified their holdings of the stock. Polar Asset Management Partners Inc. boosted its position in shares of AppLovin by 321.7% during the fourth quarter. Polar Asset Management Partners Inc. now owns 11,400 shares of the company’s stock worth $7,682,000 after acquiring an additional 16,541 shares during the last quarter. DV Equities LLC bought a new position in shares of AppLovin during the 4th quarter valued at about $256,000. Abel Hall LLC grew its position in shares of AppLovin by 70.8% during the fourth quarter. Abel Hall LLC now owns 885 shares of the company’s stock valued at $596,000 after purchasing an additional 367 shares in the last quarter. EFG International AG bought a new stake in shares of AppLovin in the fourth quarter worth about $9,158,000. Finally, CHICAGO TRUST Co NA lifted its position in shares of AppLovin by 12.8% in the fourth quarter. CHICAGO TRUST Co NA now owns 3,282 shares of the company’s stock worth $2,211,000 after buying an additional 373 shares in the last quarter. Hedge funds and other institutional investors own 41.85% of the company’s stock.

AppLovin Company Profile

AppLovin Corporation is a Palo Alto–based mobile technology company that provides software and services to help app developers grow and monetize their businesses. The company operates a data-driven advertising and marketing platform that connects app publishers and advertisers, delivering tools for user acquisition, monetization, analytics and creative optimization. AppLovin’s technology is integrated into a broad set of mobile applications through software development kits (SDKs) and ad products designed to maximize revenue and engagement for developers.

Key components of AppLovin’s offering include an ad mediation and exchange platform that enables publishers to manage and monetize inventory across multiple demand sources, and a user-acquisition platform that helps advertisers target and scale campaigns.