In a recent transaction, entities affiliated with KKR & Co. Inc. (NYSE:KKR) have sold a significant amount of shares in AppLovin Corp (NASDAQ:APP), a technology company specializing in marketing software and consumer apps. The sale, which took place on May 13, 2024, involved 17,500,000 shares of Class A Common Stock at a price of $83.36 per share, totaling approximately $1.46 billion.
This major divestment by KKR entities reflects a sizable reduction in their holdings in AppLovin Corp. Following the sale, the entities' remaining stake in the company is 366,567 shares of Class A Common Stock. This transaction is part of a series of recent financial moves by KKR-related entities involving AppLovin stock.
In addition to the sale, there was also a conversion of Class B Common Stock into an equal number of shares of Class A Common Stock, which did not involve any monetary transaction. This conversion was for 17,700,000 shares, which now form part of the Class A shares held post-transaction.
Moreover, distributions of shares for charitable purposes were reported, with 22,977 shares distributed for charitable donations and no monetary value associated with these transactions. Additionally, George R. Roberts and Henry R. Kravis made donations of 19,789 and 38,308 shares, respectively, also for charitable purposes.
The transactions by KKR entities highlight significant activity in AppLovin's stock by major stakeholders. Investors and market watchers often scrutinize such moves for insights into the sentiments of insiders and large shareholders regarding the company's future prospects.
AppLovin Corp, listed on the NASDAQ, operates within the technology sector, providing a range of software solutions that aim to grow mobile app businesses. The company's stock performance and KKR's recent transactions will likely be closely monitored by the investment community.
InvestingPro Insights
As KKR & Co. Inc. divests a substantial portion of their AppLovin Corp (NASDAQ:APP) shares, market participants are keen to understand the underlying financial health and future prospects of the technology company. According to InvestingPro data, AppLovin boasts a market capitalization of $27.66 billion, reflecting its significant presence in the marketing software and consumer apps industry. The company's P/E ratio stands at 48.55, indicating a high earnings multiple which might suggest investor confidence in future growth or potentially a premium valuation.
InvestingPro Tips reveal that AppLovin's management has been actively buying back shares, signaling confidence in the company's value. Additionally, the company is trading near its 52-week high with a price percentage of 95.03%, demonstrating recent positive momentum in the stock market. With a robust gross profit margin of 69.9% over the last twelve months as of Q1 2024, the company's profitability is clear, complemented by an impressive one-year price total return of 271.45%, showcasing significant investor returns.
For investors seeking more in-depth analysis and additional InvestingPro Tips, there are 20 more tips available on InvestingPro's platform for AppLovin, which can be accessed with the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription. These tips provide valuable insights that could help investors make more informed decisions regarding their investments in the technology sector and specifically in companies like AppLovin Corp.
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