AppLovin (NASDAQ:APP) Shares Gap Down – What’s Next?

AppLovin Co. (NASDAQ:APP) shares gapped down prior to trading on Friday . The stock had previously closed at $318.24, but opened at $309.00. AppLovin shares last traded at $309.94, with a volume of 1,995,050 shares changing hands.

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on APP shares. Oppenheimer lifted their price objective on AppLovin from $180.00 to $260.00 and gave the stock an “outperform” rating in a research report on Thursday, November 7th. Stifel Nicolaus lifted their price objective on AppLovin from $185.00 to $250.00 and gave the stock a “buy” rating in a research report on Thursday, November 7th. Wells Fargo & Company raised their target price on AppLovin from $250.00 to $360.00 and gave the company an “overweight” rating in a research note on Wednesday. Citigroup raised their target price on AppLovin from $185.00 to $335.00 and gave the company a “buy” rating in a research note on Monday. Finally, BTIG Research raised their target price on AppLovin from $202.00 to $291.00 and gave the company a “buy” rating in a research note on Thursday, November 7th. One analyst has rated the stock with a sell rating, four have issued a hold rating, fourteen have assigned a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $222.96.

AppLovin Price Performance

The firm’s 50-day moving average is $176.89 and its 200-day moving average is $115.35. 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 company has a market capitalization of $109.90 billion, a PE ratio of 96.67, a price-to-earnings-growth ratio of 3.95 and a beta of 1.86.

AppLovin (NASDAQ:APP) last issued its quarterly earnings data on Wednesday, November 6th. The company reported $1.25 EPS for the quarter, beating the consensus estimate of $0.92 by $0.33. AppLovin had a net margin of 26.85% and a return on equity of 122.24%. The firm had revenue of $1.20 billion during the quarter, compared to the consensus estimate of $1.13 billion. During the same period in the prior year, the firm posted $0.30 earnings per share. The company’s quarterly revenue was up 38.6% compared to the same quarter last year. Equities analysts predict that AppLovin Co. will post 4.06 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Dawson Alyssa Harvey sold 1,500 shares of the firm’s stock in a transaction that occurred on Tuesday, September 10th. The shares were sold at an average price of $87.90, for a total value of $131,850.00. Following the sale, the director now owns 10,247 shares in the company, valued at approximately $900,711.30. This trade represents a 12.77 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CTO Vasily Shikin sold 5,500 shares of the firm’s stock in a transaction that occurred on Monday, September 9th. The stock was sold at an average price of $86.04, for a total transaction of $473,220.00. Following the completion of the sale, the chief technology officer now owns 4,536,447 shares in the company, valued at $390,315,899.88. This represents a 0.12 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 221,376 shares of company stock worth $30,737,619. 14.69% of the stock is currently owned by company insiders.

Institutional Trading of AppLovin

Several institutional investors and hedge funds have recently modified their holdings of APP. Capital Performance Advisors LLP bought a new stake in AppLovin in the 3rd quarter valued at $25,000. DT Investment Partners LLC bought a new stake in AppLovin in the 3rd quarter valued at $27,000. Meeder Asset Management Inc. bought a new stake in AppLovin in the 3rd quarter valued at $27,000. Raleigh Capital Management Inc. bought a new stake in AppLovin in the 3rd quarter valued at $29,000. Finally, Quest Partners LLC bought a new stake in AppLovin in the 2nd quarter valued at $33,000. 41.85% of the stock is currently owned by institutional investors.

AppLovin Company Profile

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.