Chief Technology Officer Of AppLovin Sold $5.26M In Stock

Revealing a significant insider sell on March 12, Vasily Shikin, Chief Technology Officer at AppLovin APP, as per the latest SEC filing.

What Happened: Shikin's recent Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday unveiled the sale of 21,627 shares of AppLovin. The total transaction value is $5,256,889.

Tracking the Thursday's morning session, AppLovin shares are trading at $264.05, showing a down of 3.13%.

Get to Know AppLovin Better

AppLovin Corp is a mobile app technology company that focuses on growing the mobile app ecosystem by enabling the success of mobile app developers. Its software solutions provide tools for developers to grow their businesses by automating and optimizing the marketing and monetization of their applications. The company has two segments: Advertising and Apps. The majority of its revenue comes from the Advertising segment.

Understanding the Numbers: AppLovin's Finances

Revenue Growth: Over the 3 months period, AppLovin showcased positive performance, achieving a revenue growth rate of 44.01% as of 31 December, 2024. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Information Technology sector.

Insights into Profitability:

• Gross Margin: With a low gross margin of 76.66%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): AppLovin's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 1.77.

Debt Management: AppLovin's debt-to-equity ratio is notably higher than the industry average. With a ratio of 3.26, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 60.17, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 20.13 is above industry norms, reflecting an elevated valuation for AppLovin's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Indicated by a lower-than-industry-average EV/EBITDA ratio of 40.75, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

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The Relevance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

Transaction Codes Worth Your Attention

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely 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.