In a recent transaction, Herald Y Chen, the President and Chief Financial Officer of AppLovin Corp (NASDAQ:APP), a company specializing in computer programming and data processing services, sold a significant number of shares. The transaction, which took place on March 14, 2024, involved the sale of 144,200 shares at a weighted average price of $63.01, with individual sales prices ranging from $62.51 to $63.44. Additionally, another set of 5,800 shares were sold at a weighted average price of $63.89, with sales prices varying from $63.51 to $64.30. The combined sales totaled approximately $9,456,604.
Chen's sales were executed as part of a pre-arranged 10b5-1 trading plan, which allows company insiders to set up a predetermined plan to sell company stocks. The plan was adopted on December 14, 2023, and the Class B Common Stock sold were automatically converted into Class A Common Stock as part of the transaction.
Following the sale, Chen continues to hold 62,418 shares of Class A Common Stock directly. Additionally, the SEC filing indicates that certain securities are represented by Restricted Stock Units (RSUs) and that shares are also held by The Chen Family 2012 Irrevocable Trust, of which Chen and his spouse are trustees.
The transactions are part of regular SEC filings that provide transparency into the stock trading activities of company executives and other insiders. These filings give investors insight into the actions of key company figures, which can be an important factor in investment decisions.
Investors and stakeholders in AppLovin Corp can request more detailed information about the sales, including the number of shares sold at each price point, from the company or the Securities and Exchange Commission if needed.
InvestingPro Insights
As AppLovin Corp (NASDAQ:APP) continues to navigate the competitive landscape of computer programming and data processing services, the company's financial metrics and management actions offer insights for investors. In the light of recent insider transactions, it's worth noting that AppLovin's management has been actively engaging in share buybacks, as highlighted in one of the InvestingPro Tips. This could signal confidence in the company's future prospects and a commitment to increasing shareholder value.
Further examining the company's financial health, AppLovin's impressive revenue growth over the last twelve months as of Q4 2023 stands at 16.54%, with an even more remarkable quarterly growth rate of 35.73%. Such robust top-line growth is a testament to the company's market position and its ability to capitalize on demand within its industry. Additionally, the company's high gross profit margin of 67.74% during the same period underscores its ability to maintain profitability despite competitive pressures.
Investors looking for growth opportunities may also be encouraged by AppLovin's PEG Ratio of 0.2, suggesting that the company's shares could be undervalued relative to its earnings growth potential. This aligns with another InvestingPro Tip that points out the company's low P/E ratio in relation to near-term earnings growth, potentially offering an attractive entry point for value-oriented investors.
For those interested in further analysis and additional InvestingPro Tips, there are 18 more tips available, each providing a different angle on the company's performance and outlook. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and gain comprehensive insights that could inform your investment strategy.
Finally, with a market capitalization of $22.45 billion and a strong return of 366.94% over the last year, AppLovin Corp presents a compelling case for both growth and value investors. The company's next earnings date is set for May 8, 2024, which will be a significant date for shareholders and potential investors to look forward to.
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