Kihorany Katie Jansen Executes Sell Order: Offloads $34.26M In AppLovin Stock

Making a noteworthy insider sell on November 15, Kihorany Katie Jansen, Chief Marketing Officer at AppLovin APP, is reported in the latest SEC filing.

What Happened: Jansen opted to sell 119,752 shares of AppLovin, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Friday. The transaction's total worth stands at $34,264,844.

Tracking the Friday's morning session, AppLovin shares are trading at $282.71, showing a down of 0.63%.

Delving into AppLovin's Background

AppLovin Corp is a mobile app technology company. It focuses on growing the mobile app ecosystem by enabling the success of mobile app developers. The company's software solutions provide tools for mobile app developers to grow their businesses by automating and optimizing the marketing and monetization of their applications.

A Deep Dive into AppLovin's Financials

Revenue Growth: AppLovin's remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 38.64%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Profitability Metrics: Unlocking Value

• Gross Margin: The company maintains a high gross margin of 77.5%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): AppLovin's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 1.29.

Debt Management: AppLovin's debt-to-equity ratio surpasses industry norms, standing at 3.74. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Understanding Financial Valuation:

• Price to Earnings (P/E) Ratio: AppLovin's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 86.47.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 23.05, AppLovin's stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a lower-than-industry-average EV/EBITDA ratio of 49.82, AppLovin presents a potential value opportunity, as investors are paying less for each unit of EBITDA.

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

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Illuminating the Importance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Cracking Transaction Codes

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of AppLovin's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.