AppLovin Corp's (NASDAQ:APP) Chief Technology Officer, Vasily Shikin, has sold a significant portion of his shares in the company, according to recent filings. The transactions, which took place between September 6 and September 9, 2024, amounted to a total sale value of over $13 million.
The sales were conducted under a pre-arranged Rule 10b5-1 trading plan, which allows company insiders to sell shares at predetermined times to avoid any accusations of insider trading. The shares were sold in multiple transactions at prices that ranged from $83.16 to $88.06, reflecting a weighted average price within these ranges for each set of trades.
Shikin's sales included 48,740 shares at an average price of $83.16, 45,798 shares at $84.08, 53,970 shares at $84.70, 5,500 shares at $86.04, 3,760 shares at $87.22, and 2,232 shares at $88.06. Following these transactions, Shikin still holds a substantial number of shares in AppLovin, with some of the shares represented by Restricted Stock Units (RSUs) and Performance Stock Units (PSUs).
The filings also noted that certain shares are held indirectly through family trusts. These include the IK50 Holdings Trust and IS37 Holdings Trust, which are for the benefit of Shikin's immediate family members, and The Shikin 2020 Irrevocable GST Trust for his children's benefit.
AppLovin Corp, based in Palo Alto (NASDAQ:PANW), California, specializes in computer programming and data processing services. The company has been a player in the tech industry, with its stock traded under the ticker symbol APP on the NASDAQ exchange.
Investors often monitor insider transactions for insights into how company executives view the stock's value and prospects. The sale of such a large amount of stock by a high-ranking company official like the CTO can attract attention in the investment community. However, it is not uncommon for executives to sell shares for reasons that may include diversification, liquidity, or personal financial planning.
In other recent news, AppLovin Corporation experienced a significant increase in its Q2 earnings and revenue, with a 44% rise in revenue to $1.08 billion. The company's adjusted EBITDA also soared by 80% to $601 million. AppLovin's software business, in particular, saw a 5% growth quarter-over-quarter. Looking forward, the company anticipates Q3 revenue to be between $1.115 billion and $1.135 billion, with an adjusted EBITDA ranging from $630 million to $650 million.
The company also launched a web advertising program for e-commerce, which demonstrated positive results in its pilot phase. Long-term growth for the software platform is projected to be between 20% to 30%. However, Benchmark, an analyst firm, maintains a sell rating for AppLovin despite raising the price target to $66. The firm anticipates that the company's adjusted EBITDA contribution from the Software Platform will be below the consensus estimate for 2025, expecting a margin of around 25%, down from the 82% estimated for 2024. This is due to reduced revenue leverage and the impact of lower user acquisition spending in the App segment during the second quarter.
InvestingPro Insights
As AppLovin Corp's (NASDAQ:APP) CTO Vasily Shikin sells a significant portion of his shares, investors are taking a closer look at the company's performance metrics and future prospects. According to InvestingPro, AppLovin's market capitalization stands at $28.78 billion, reflecting the company's substantial size and influence in the tech industry.
InvestingPro Tips highlight that management's aggressive share buyback strategy and the anticipation of net income and sales growth this year are positive signals for investors. These actions demonstrate confidence in the company's future performance and could potentially be a catalyst for future stock appreciation. Notably, AppLovin is trading at a high earnings multiple, with a P/E ratio of 35.56, indicating that the market has high expectations for the company's earnings growth.
Key InvestingPro Data metrics reveal that the company has experienced impressive revenue growth, with a 37.31% increase over the last twelve months as of Q2 2024. This growth is even more pronounced on a quarterly basis, with a 43.98% increase reported in Q2 2024. Additionally, AppLovin's gross profit margin stands at a robust 71.8%, showcasing the company's ability to maintain profitability amidst its expansion.
For investors interested in further insights and metrics, InvestingPro offers additional tips on AppLovin Corp, providing a comprehensive analysis of the company's financial health and stock performance. These insights can be accessed through the dedicated InvestingPro platform.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.