AppLovin (NASDAQ:APP) Shares Gap Down Following Insider Selling

Shares of AppLovin Co. (NASDAQ:APP) gapped down before the market opened on Monday after an insider sold shares in the company. The stock had previously closed at $417.89, but opened at $401.25. AppLovin shares last traded at $393.70, with a volume of 1,652,677 shares traded.

Specifically, Director Dawson Alyssa Harvey sold 513 shares of AppLovin stock in a transaction dated Friday, June 6th. The shares were sold at an average price of $420.30, for a total transaction of $215,613.90. Following the sale, the director now directly owns 3,451 shares in the company, valued at $1,450,455.30. The trade was a 12.94% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Dawson Alyssa Harvey sold 2,987 shares of AppLovin stock in a transaction dated Thursday, June 5th. The shares were sold at an average price of $413.98, for a total transaction of $1,236,558.26. Following the sale, the director now owns 3,964 shares in the company, valued at approximately $1,641,016.72. This represents a 42.97% decrease in their ownership of the stock. The disclosure for this sale can be found here. In other AppLovin news, Director Herald Y. Chen sold 100,000 shares of the business’s stock in a transaction dated Friday, June 6th. The shares were sold at an average price of $419.91, for a total value of $41,991,000.00. Following the sale, the director now directly owns 181,929 shares in the company, valued at approximately $76,393,806.39. The trade was a 35.47% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink.

Analyst Ratings Changes

Several research firms have issued reports on APP. Loop Capital restated a “buy” rating and set a $650.00 price objective on shares of AppLovin in a report on Friday, March 28th. Needham & Company LLC reiterated a “hold” rating on shares of AppLovin in a research note on Wednesday, May 28th. Benchmark restated a “buy” rating and issued a $525.00 target price on shares of AppLovin in a report on Thursday, May 8th. JPMorgan Chase & Co. upped their price target on AppLovin from $355.00 to $400.00 and gave the stock a “neutral” rating in a report on Tuesday, June 3rd. Finally, Wells Fargo & Company upped their price target on AppLovin from $386.00 to $405.00 and gave the stock an “overweight” rating in a report on Thursday, May 8th. One analyst has rated the stock with a sell rating, three have issued a hold rating, seventeen have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $438.10.

AppLovin Stock Performance

The firm has a fifty day moving average of $313.03 and a 200-day moving average of $332.78. The company has a quick ratio of 2.41, a current ratio of 2.41 and a debt-to-equity ratio of 3.70. The firm has a market cap of $129.81 billion, a P/E ratio of 84.49, a PEG ratio of 3.02 and a beta of 2.53.

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

Institutional Investors Weigh In On AppLovin

Hedge funds have recently modified their holdings of the business. Fuller & Thaler Asset Management Inc. bought a new position in shares of AppLovin during the fourth quarter worth about $25,000. Atala Financial Inc bought a new position in shares of AppLovin during the 1st quarter worth approximately $26,000. Alpine Bank Wealth Management bought a new position in shares of AppLovin during the 1st quarter worth approximately $27,000. Riverview Trust Co boosted its stake in shares of AppLovin by 1,640.0% during the 4th quarter. Riverview Trust Co now owns 87 shares of the company’s stock worth $28,000 after acquiring an additional 82 shares during the period. Finally, Tucker Asset Management LLC acquired a new stake in AppLovin during the 4th quarter worth approximately $28,000. 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.