Chief Technology Officer Of AppLovin Makes $10.45M Sale

Making a noteworthy insider sell on March 12, Vasily Shikin, Chief Technology Officer at AppLovin APP, is reported in the latest SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday outlined that Shikin executed a sale of 43,373 shares of AppLovin with a total value of $10,450,547.

Monitoring the market, AppLovin‘s shares down by 3.09% at $264.16 during Thursday’s morning.

About AppLovin

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.

Financial Milestones: AppLovin’s Journey

Revenue Growth: AppLovin’s revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 44.01%. This indicates a substantial increase in the company’s top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.

Holistic Profitability Examination:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 76.66%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): AppLovin’s EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 1.77.

Debt Management: AppLovin’s debt-to-equity ratio stands notably higher than the industry average, reaching 3.26. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Financial Valuation:

• 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): The company’s EV/EBITDA ratio of 40.75 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.

Market Capitalization: Surpassing industry standards, the company’s market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

The Impact of Insider Transactions on Investments

While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.

In the context of legal matters, the term “insider” refers to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed 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.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Exploring Key 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.

Insider Buying Alert: Profit from C-Suite Moves

Benzinga Edge reveals every insider trade in real-time. Don’t miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.

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