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

AppLovin Corporation (NASDAQ:APP) shares dropped 4.7% during 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. 9,109,943 shares traded hands during trading, an increase of 58% from the average daily volume of 5,765,886 shares. The stock had previously closed at $318.68.

APP has been the subject of several other research reports. Wedbush dropped their price objective on AppLovin from $640.00 to $610.00 and set an “outperform” rating for the company in a research note on Thursday, August 6th. Morgan Stanley lowered their price target on AppLovin from $720.00 to $650.00 and set an “overweight” rating on the stock in a report on Thursday, August 6th. Benchmark dropped their price target on AppLovin from $775.00 to $500.00 and set a “buy” rating for the company in a research report on Thursday, August 6th. UBS Group cut their price objective on AppLovin from $798.00 to $790.00 and set a “buy” rating for the company in a report on Thursday, August 6th. Finally, Weiss Ratings upgraded shares of AppLovin from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, August 6th. Three analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and eight have given a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $565.91.

Insider Transactions at AppLovin

In other news, insider Victoria Valenzuela sold 20,000 shares of the stock in a transaction dated Thursday, June 4th. The stock was sold at an average price of $565.89, for a total transaction of $11,317,800.00. Following the transaction, the insider directly owned 243,961 shares in the company, valued at approximately $138,055,090.29. This represents a 7.58% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Arash Adam Foroughi sold 33,042 shares of the firm’s stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $486.95, for a total value of $16,089,801.90. Following the transaction, the chief executive officer directly owned 2,369,351 shares in the company, valued at approximately $1,153,755,469.45. This represents a 1.38% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 393,000 shares of company stock worth $197,297,363. Company insiders own 12.81% of the company’s stock.

More AppLovin News

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 Trading of AppLovin

Several hedge funds have recently added to or reduced their stakes in APP. Washington Trust Advisors Inc. lifted its stake in shares of AppLovin by 160.0% in 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 last quarter. Mcguire Capital Advisors Inc. purchased a new position in AppLovin in the 4th quarter worth approximately $27,000. Laurel Wealth Advisors LLC purchased a new position in AppLovin in the 4th quarter worth approximately $32,000. Osbon Capital Management LLC bought a new stake in AppLovin in the fourth quarter valued at approximately $36,000. Finally, Dogwood Wealth Management LLC boosted its stake in shares of AppLovin by 84.4% during the fourth quarter. Dogwood Wealth Management LLC now owns 59 shares of the company’s stock valued at $40,000 after purchasing an additional 27 shares during the period. 41.85% of the stock is owned by institutional investors.

AppLovin Price Performance

The company has a quick ratio of 4.30, a current ratio of 4.30 and a debt-to-equity ratio of 1.11. The firm’s fifty day moving average price is $462.95 and its 200-day moving average price is $460.08. The stock has a market cap of $102.05 billion, a P/E ratio of 23.35, a PEG ratio of 0.63 and a beta of 2.54.

AppLovin (NASDAQ:APP) last posted its quarterly earnings results on Tuesday, August 4th. The company reported $3.76 EPS for the quarter, meeting analysts’ consensus estimates of $3.76. The company had revenue of $1.92 billion during 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 firm’s revenue was up 52.8% compared to the same quarter last year. During the same period in the prior year, the business posted $2.39 EPS. Analysts forecast that AppLovin Corporation will post 15.56 earnings per share for the current 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.