AppLovin (NASDAQ:APP) Shares Down 6.9% Following Insider Selling

AppLovin Corporation (NASDAQ:APP) shares dropped 6.9% during mid-day trading on Tuesday after an insider sold shares in the company. The company traded as low as $407.52 and last traded at $408.41. Approximately 2,283,053 shares traded hands during mid-day trading, a decline of 68% from the average daily volume of 7,096,576 shares. The stock had previously closed at $438.54.

Specifically, Director Herald Y. Chen sold 200,000 shares of the firm’s stock in a transaction dated Thursday, August 14th. The shares were sold at an average price of $432.49, for a total value of $86,498,000.00. Following the completion of the sale, the director directly owned 181,929 shares in the company, valued at $78,682,473.21. This trade represents a 52.37% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director Herald Y. Chen sold 200 shares of the firm’s stock in a transaction dated Friday, August 15th. The stock was sold at an average price of $424.19, for a total transaction of $84,838.00. Following the completion of the sale, the director owned 189,800 shares of the company’s stock, valued at $80,511,262. This trade represents a 0.11% 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 50,000 shares of the firm’s stock in a transaction dated Friday, August 15th. The shares were sold at an average price of $436.61, for a total value of $21,830,500.00. Following the completion of the sale, the director directly owned 181,929 shares in the company, valued at $79,432,020.69. This trade represents a 21.56% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link.

Wall Street Analyst Weigh In

APP has been the subject of several research analyst reports. JPMorgan Chase & Co. raised their price objective on shares of AppLovin from $400.00 to $425.00 and gave the stock a “neutral” rating in a report on Thursday, August 7th. Scotiabank raised their price objective on shares of AppLovin from $430.00 to $450.00 and gave the stock a “sector outperform” rating in a report on Thursday, August 7th. Jefferies Financial Group raised their price objective on shares of AppLovin from $460.00 to $530.00 and gave the stock a “buy” rating in a report on Thursday, May 8th. Wells Fargo & Company raised their price objective on shares of AppLovin from $405.00 to $480.00 and gave the stock an “overweight” rating in a report on Thursday, August 7th. Finally, Wall Street Zen lowered shares of AppLovin from a “buy” rating to a “hold” rating in a report on Saturday, August 9th. Two research analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $472.33.

AppLovin Stock Down 5.9%

The company has a market cap of $139.56 billion, a P/E ratio of 58.61, a P/E/G ratio of 2.45 and a beta of 2.43. The company has a debt-to-equity ratio of 3.01, a current ratio of 2.74 and a quick ratio of 2.74. The company’s 50-day moving average is $372.50 and its two-hundred day moving average is $343.87.

AppLovin (NASDAQ:APP) last announced its quarterly earnings results on Wednesday, August 6th. The company reported $2.26 earnings per share for the quarter, beating the consensus estimate of $2.05 by $0.21. The company had revenue of $1.26 billion during the quarter, compared to the consensus estimate of $1.37 billion. AppLovin had a net margin of 45.72% and a return on equity of 252.67%. The firm’s quarterly revenue was up 77.1% compared to the same quarter last year. During the same quarter last year, the firm earned $0.89 earnings per share. As a group, equities analysts predict that AppLovin Corporation will post 6.87 earnings per share for the current fiscal year.

Institutional Investors Weigh In On AppLovin

Several institutional investors and hedge funds have recently made changes to their positions in the company. B. Riley Wealth Advisors Inc. bought a new stake in shares of AppLovin during the second quarter valued at approximately $1,261,000. Newbridge Financial Services Group Inc. bought a new stake in shares of AppLovin during the second quarter valued at approximately $219,000. Marex Group plc bought a new stake in shares of AppLovin during the second quarter valued at approximately $19,620,000. Advisory Services Network LLC increased its position in shares of AppLovin by 4.1% during the second quarter. Advisory Services Network LLC now owns 26,340 shares of the company’s stock valued at $9,221,000 after acquiring an additional 1,035 shares in the last quarter. Finally, State of Wyoming bought a new stake in AppLovin in the 2nd quarter worth approximately $310,000. Institutional investors 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.