Chen Herald Y, a director at AppLovin Corp (NASDAQ:APP), has reported significant stock sales according to a recent SEC filing. On December 10th and 11th, Chen sold a substantial number of Class A Common Stock shares, totaling approximately $41.9 million. The transactions were executed at prices ranging from $316.48 to $353.25 per share. The sales come amid AppLovin's remarkable performance, with the stock delivering a 718% return year-to-date. According to InvestingPro analysis, the company maintains a GREAT financial health score, though current valuations suggest the stock may be overvalued.
The transactions included several sales over two days. On December 10th, Chen sold shares at various price points, including 699 shares at $349.18, 1,800 shares at $350.49, and 2,421 shares at $352.62, among others. The following day, additional sales were made, including 3,000 shares at $323.78 and 5,289 shares at $324.88. Currently trading at $326.21, AppLovin's stock has shown significant volatility, with a 52-week range of $37.40 to $417.63.
In addition to these sales, Chen also exercised options to acquire 100,000 shares on December 11th and December 12th at a price of $5.05 per share, totaling $1,010,000.
Following these transactions, Chen retains a significant number of shares, with ownership of both direct and indirect holdings. Some of the shares are held through The Chen Family 2012 Irrevocable Trust, as noted in the filing.
In other recent news, AppLovin Corp has been making significant financial strides. The company issued $3.55 billion in senior notes and secured a new $1 billion unsecured revolving credit facility with JPMorgan Chase (NYSE:JPM), intending to repay existing senior secured term loan facilities due in 2028 and 2030. This move follows a 41.5% revenue growth over the past year.
Analyst firms have maintained positive ratings and increased price targets for the company. Stifel raised its price target to $435, maintaining a "Buy" rating. Similarly, Piper Sandler kept an "Overweight" rating with a price target of $400, while Loop Capital retained its "Buy" rating with a price target of $385. Oppenheimer reiterated its "Outperform" rating and increased its price target significantly to $480.
AppLovin's third-quarter results revealed a 39% year-over-year increase in revenue, reaching $1.2 billion. The company is transitioning to an all unsecured debt capital structure following investment grade ratings from S&P Global Ratings and Fitch Ratings. Projections for Q4 2024 revenue are between $1.24 billion and $1.26 billion, with adjusted EBITDA expectations of $740 million to $760 million. These are recent developments within AppLovin.
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