Chen Herald Y, President and CFO of AppLovin Corp (NASDAQ:APP), recently executed significant stock transactions, according to a recent SEC filing. On December 9, Chen sold a total of 176,328 shares of AppLovin's Class A Common Stock, generating approximately $59.4 million. The sales were conducted at prices ranging from $333.74 to $363.07 per share. The timing is notable as AppLovin's stock has delivered an impressive 773% return over the past year, with the company currently commanding a market capitalization of nearly $108 billion and trading at a P/E ratio of 95.
In addition to these sales, Chen acquired shares through conversions of Class B Common Stock to Class A Common Stock earlier on December 6, although these transactions were valued at zero dollars as per the filing. Following these transactions, Chen's direct and indirect holdings include shares held by The Chen Family 2012 Irrevocable Trust. According to InvestingPro analysis, AppLovin appears overvalued at current levels, with 20+ exclusive ProTips and comprehensive valuation metrics available for deeper insight into the company's financial health and growth prospects.
In other recent news, AppLovin Corp has seen significant financial developments and maintained positive analyst ratings. The company's third-quarter results revealed a 39% year-over-year increase in revenue, reaching $1.2 billion. AppLovin has also issued $3.55 billion in senior notes and secured a new $1 billion unsecured revolving credit facility with JPMorgan Chase (NYSE:JPM). These financial maneuvers are part of a strategy to repay existing senior secured term loan facilities due in 2028 and 2030.
On the analyst front, Oppenheimer maintained an Outperform rating and a price target of $480, viewing the recent 15% decline in AppLovin's stock price as a buying opportunity. Stifel raised its price target to $435, maintaining a "Buy" rating, while Piper Sandler kept an "Overweight" rating with a price target of $400. Loop Capital also retained its "Buy" rating with a price target of $385.
These are among the recent developments within AppLovin, including projections for Q4 2024 revenue between $1.24 billion and $1.26 billion, and adjusted EBITDA expectations of $740 million to $760 million. The company's transition to an all unsecured debt capital structure following investment grade ratings from S&P Global Ratings and Fitch Ratings is another noteworthy development.
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