AppLovin Corp (NASDAQ:APP) reported a significant transaction by its Chief Financial Officer (CFO), Matthew Stumpf, according to a recent SEC filing. Stumpf sold 2,775 shares of the company's Class A Common Stock at a price of $63.30 per share, totaling approximately $175,657. This sale took place on March 14, 2024, and followed an acquisition of 4,686 shares through an option exercise at a price of $5.05 per share, amounting to $23,664.
The transactions resulted in Stumpf holding 362,264 shares directly after the sale, with the filing noting that some of these securities are represented by Restricted Stock Units (RSUs) and Performance Stock Units (PSUs). The filing also mentioned that the options exercised had an early-exercise provision and vesting conditions, which include the vesting of 1/4th of the shares on a specific date and 1/48th each month thereafter, contingent on Stumpf's continued service.
Investors and followers of AppLovin Corp will note the CFO's recent stock activities as part of their ongoing assessment of the company's financial leadership and insider confidence. The company, known for its services in computer programming and data processing, has its headquarters located in Palo Alto, California.
The detailed transactions and footnotes provided in the SEC Form 4 filing offer a glimpse into the stock compensation structure and the financial moves of one of AppLovin's top executives.
InvestingPro Insights
As investors digest the recent insider trading activity at AppLovin Corp (NASDAQ:APP), it's worth considering the broader financial landscape of the company. The Chief Financial Officer's stock sale comes at a time when AppLovin showcases a robust financial profile, according to InvestingPro metrics. The company's market capitalization stands at a solid $22.45 billion, reflecting investor confidence in its market position. Additionally, the company's revenue has seen a notable increase, with a growth of 16.54% over the last twelve months as of Q4 2023, and an even more impressive quarterly revenue growth of 35.73% in Q4 2023.
AppLovin's gross profit margin of 67.74% further underscores its ability to maintain profitability, which is complemented by a substantial EBITDA growth of 115.76% during the same period. These figures suggest that the company is not only increasing its revenue but is also effectively managing its expenses to enhance its earnings before interest, taxes, depreciation, and amortization.
InvestingPro Tips reveal that AppLovin is expected to continue its positive trajectory, with net income projected to grow this year. This aligns with the company's recent performance, which includes a strong return over the last three months and a significant price uptick over the last six months. For investors seeking more detailed analysis and additional InvestingPro Tips, there are 18 more tips available for AppLovin, which can be accessed through the InvestingPro platform. These insights can provide a more nuanced understanding of the company's financial health and future prospects.
For those interested in a deeper dive into AppLovin's financials and performance metrics, a yearly or biyearly Pro and Pro+ subscription to InvestingPro is available. Use the coupon code PRONEWS24 to get an additional 10% off on your subscription, and gain access to valuable investment insights that can inform your trading decisions.
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