AppLovin (NASDAQ:APP) Trading Down 4.7% on Analyst Downgrade

AppLovin Corporation (NASDAQ:APP)’s stock price was down 4.7% during mid-day trading on Wednesday after BTIG Research lowered their price target on the stock from $574.00 to $408.00. BTIG Research currently has a buy rating on the stock. AppLovin traded as low as $303.17 and last traded at $303.76. Approximately 9,109,943 shares changed hands during trading, an increase of 58% from the average session volume of 5,765,886 shares. The stock had previously closed at $318.68.

Other equities analysts have also recently issued reports about the company. Argus initiated coverage on AppLovin in a research note on Tuesday, April 14th. They set a “buy” rating and a $520.00 price objective on the stock. Scotiabank reiterated a “sector outperform” rating and issued a $515.00 target price on shares of AppLovin in a research note on Thursday, August 6th. JPMorgan Chase & Co. increased their target price on shares of AppLovin from $500.00 to $515.00 and gave the company a “neutral” rating in a report on Thursday, May 7th. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and set a $660.00 price target on shares of AppLovin in a research report on Thursday, May 7th. Finally, Wells Fargo & Company restated an “equal weight” rating and set a $357.00 price target (down from $575.00) on shares of AppLovin in a report on Thursday, August 6th. Three equities research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eight have given a Hold rating to the company’s stock. According to MarketBeat, AppLovin has a consensus rating of “Moderate Buy” and a consensus price target of $565.91.

Insider Transactions at AppLovin

In related news, CFO Matthew Stumpf sold 9,052 shares of the business’s stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $600.00, for a total value of $5,431,200.00. Following the transaction, the chief financial officer directly owned 177,450 shares of the company’s stock, valued at approximately $106,470,000. The trade was a 4.85% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CTO Vasily Shikin sold 62,804 shares of the stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $484.42, for a total transaction of $30,423,513.68. Following the transaction, the chief technology officer owned 3,189,739 shares of the company’s stock, valued at approximately $1,545,173,366.38. The trade was a 1.93% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 393,000 shares of company stock worth $197,297,363. Company insiders own 12.81% of the company’s stock.

Key Stories Impacting AppLovin

Here are the key news stories impacting AppLovin this week:

• Positive Sentiment: AppLovin’s third-quarter outlook calls for sequential revenue-growth reacceleration while preserving an approximately 83% margin, even as the company continues investing in AI computing capacity. The guidance could help rebuild confidence in the company’s growth trajectory. AppLovin Q3 Guidance Signals Reacceleration After a Mixed Q2 Print
• Positive Sentiment: BTIG lowered its price target sharply from $574 to $408 but maintained a Buy rating, implying analysts still see meaningful upside if execution improves. Phillip Securities also upgraded the stock from “moderate buy” to “strong-buy.” BTIG AppLovin Price Target Update
• Neutral Sentiment: Several investor-focused analyses describe AppLovin as a potentially attractive value opportunity because of rapid revenue growth, high margins and strong profitability. However, they also highlight limited visibility and execution risks in e-commerce and newer growth initiatives. Is AppLovin Stock Worth Holding as Growth Clashes With Valuation Risk?
• Negative Sentiment: The second-quarter results met EPS expectations but revenue slightly missed forecasts, raising concerns that prior growth assumptions may be too aggressive. Bank of America’s downgrade intensified selling pressure and reduced confidence in AppLovin’s ability to defend its long-term growth target. AppLovin’s Growth Target Just Got Harder to Defend

Institutional Investors Weigh In On AppLovin

Several large investors have recently modified their holdings of APP. Cassaday & Co Wealth Management LLC purchased a new stake in shares of AppLovin during the 1st quarter valued at approximately $25,000. Washington Trust Advisors Inc. raised its holdings in AppLovin by 160.0% during the 4th quarter. Washington Trust Advisors Inc. now owns 39 shares of the company’s stock valued at $27,000 after acquiring an additional 24 shares during the period. Mcguire Capital Advisors Inc. purchased a new stake in shares of AppLovin during the fourth quarter worth $27,000. Pioneer Family Office LLC purchased a new stake in shares of AppLovin during the second quarter worth $31,000. Finally, Laurel Wealth Advisors LLC bought a new position in shares of AppLovin in the fourth quarter worth $32,000. Hedge funds and other institutional investors own 41.85% of the company’s stock.

AppLovin Stock Down 4.7%

The stock has a market capitalization of $102.05 billion, a P/E ratio of 23.35, a price-to-earnings-growth ratio of 0.63 and a beta of 2.54. The company has a debt-to-equity ratio of 1.11, a current ratio of 4.30 and a quick ratio of 4.30. The stock has a fifty day moving average price of $462.95 and a 200 day moving average price of $460.08.

AppLovin (NASDAQ:APP) last issued its earnings results on Tuesday, August 4th. The company reported $3.76 EPS for the quarter, hitting the consensus estimate of $3.76. AppLovin had a return on equity of 193.10% and a net margin of 64.58%.The business had revenue of $1.92 billion during the quarter, compared to the consensus estimate of $1.94 billion. During the same quarter last year, the company earned $2.39 EPS. The firm’s revenue was up 52.8% compared to the same quarter last year. On average, research analysts forecast that AppLovin Corporation will post 15.56 earnings per share for the current year.

About AppLovin

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.