Vasily Shikin Executes Sell Order: Offloads $51.74M In AppLovin Stock

Vasily Shikin, Chief Technology Officer at AppLovin APP, executed a substantial insider sell on November 26, according to an SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday outlined that Shikin executed a sale of 165,986 shares of AppLovin with a total value of $51,735,180.

AppLovin shares are trading down 3.11% at $319.51 at the time of this writing on Wednesday morning.

All You Need to Know About AppLovin

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.

AppLovin: Financial Performance Dissected

Revenue Growth: AppLovin's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2024, the company achieved a revenue growth rate of approximately 38.64%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company excelled with a growth rate higher than the average among peers.

Key Profitability Indicators:

• 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): With an EPS below industry norms, AppLovin exhibits below-average bottom-line performance with a current EPS of 1.29.

Debt Management: AppLovin's debt-to-equity ratio is notably higher than the industry average. With a ratio of 3.74, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Financial Valuation:

• Price to Earnings (P/E) Ratio: AppLovin's current Price to Earnings (P/E) ratio of 100.23 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.

• Price to Sales (P/S) Ratio: The current P/S ratio of 26.72 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): At 57.51, AppLovin's EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

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The Relevance of Insider Transactions

Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

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

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

Important Transaction Codes

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates 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.