AppLovin (NASDAQ:APP) Trading Down 1.1% on Analyst Downgrade

AppLovin Corporation (NASDAQ:APP) shares dropped 1.1% during mid-day trading on Monday after Benchmark lowered their price target on the stock from $500.00 to $440.00. Benchmark currently has a buy rating on the stock. AppLovin traded as low as $307.70 and last traded at $311.98. 5,626,039 shares changed hands during mid-day trading, a decline of 3% from the average session volume of 5,782,994 shares. The stock had previously closed at $315.44.

A number of other research analysts have also recently weighed in on the stock. Citigroup cut their price objective on shares of AppLovin from $710.00 to $650.00 and set a “buy” rating for the company in a report on Friday, August 7th. Morgan Stanley dropped their target price on AppLovin from $720.00 to $650.00 and set an “overweight” rating on the stock in a research report on Thursday, August 6th. Scotiabank restated a “sector outperform” rating and issued a $515.00 price target on shares of AppLovin in a research note on Thursday, August 6th. Bank of America reiterated a “neutral” rating and set a $400.00 price target (down from $430.00) on shares of AppLovin in a research report on Tuesday, August 11th. Finally, JPMorgan Chase & Co. raised their price objective on AppLovin from $500.00 to $515.00 and gave the company a “neutral” rating in a report on Thursday, May 7th. Three equities research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eight have issued a Hold rating to the stock. According to MarketBeat.com, AppLovin currently has an average rating of “Moderate Buy” and a consensus target price of $557.83.

Insider Buying and Selling

In other AppLovin news, Director Eduardo Vivas sold 163,910 shares of the business’s stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $504.06, for a total transaction of $82,620,474.60. Following the completion of the sale, the director directly owned 6,785,087 shares in the company, valued at approximately $3,420,090,953.22. The trade was a 2.36% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Maynard G. Webb, Jr. sold 3,076 shares of the stock in a transaction that occurred on Monday, July 6th. The shares were sold at an average price of $521.29, for a total value of $1,603,488.04. Following the transaction, the director directly owned 120,444 shares of the company’s stock, valued at $62,786,252.76. The trade was a 2.49% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 393,000 shares of company stock worth $197,297,363 in the last quarter. 12.81% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Ancora Advisors LLC acquired a new stake in AppLovin during the 2nd quarter worth $169,000. Kelly Lawrence W & Associates Inc. CA acquired a new stake in shares of AppLovin in the second quarter valued at about $11,669,000. C M Bidwell & Associates Ltd. purchased a new position in shares of AppLovin in the second quarter worth about $483,000. Abacus FCF Advisors LLC purchased a new position in shares of AppLovin in the second quarter worth about $9,706,000. Finally, Great Lakes Advisors LLC acquired a new position in AppLovin during the second quarter worth about $2,091,000. Hedge funds and other institutional investors own 41.85% of the company’s stock.

AppLovin Stock Performance

The company has a market cap of $104.40 billion, a PE ratio of 23.98, a PEG ratio of 0.63 and a beta of 2.54. The company has a debt-to-equity ratio of 1.11, a quick ratio of 4.30 and a current ratio of 4.30. The firm’s 50 day moving average is $447.84 and its 200-day moving average is $455.50.

AppLovin (NASDAQ:APP) last released its earnings results on Tuesday, August 4th. The company reported $3.76 earnings per share for the quarter, hitting analysts’ consensus estimates of $3.76. The business had revenue of $1.92 billion for the quarter, compared to analyst estimates of $1.94 billion. AppLovin had a net margin of 64.58% and a return on equity of 193.10%. The business’s revenue was up 52.8% on a year-over-year basis. During the same period last year, the company posted $2.39 EPS. On average, research analysts anticipate that AppLovin Corporation will post 15.57 earnings per share for the current fiscal year.

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.