PALO ALTO, CA—Shikin Vasily, Chief Technology Officer of AppLovin Corp (NASDAQ:APP), has reported significant stock sales according to a recent SEC filing. On November 21, Vasily sold a substantial number of Class A Common Stock shares, totaling $189.6 million. The shares were sold at prices ranging from $309.84 to $327.90 per share.
The transactions were carried out in multiple trades, as detailed in the filing. Following these sales, Vasily retains ownership of approximately 3,919,624 shares directly. Additional shares are held indirectly through various trusts for the benefit of his immediate family members.
This activity comes amid routine stock management practices, with some sales reportedly aimed at satisfying tax liabilities related to the vesting of performance units. AppLovin, a prominent player in the mobile technology space, continues to engage in dynamic stock activities as part of its executive compensation and financial strategies.
In other recent news, AppLovin Corporation announced plans to offer senior notes, with the intent to use the proceeds to repay existing senior secured term loan facilities due in 2028 and 2030. The company also revealed plans to transition to an all unsecured debt capital structure after acquiring investment grade ratings from S&P Global Ratings and Fitch Ratings. This move is accompanied by the securing of syndication commitments for a new unsecured revolving credit facility, enabling AppLovin to borrow up to $1 billion.
In terms of financial performance, AppLovin reported a 39% year-over-year increase in revenue for its third quarter, reaching $1.2 billion. The growth was primarily driven by the company's advertising network's performance within the gaming sector, and revenues from AppLovin's Software (ETR:SOWGn) Platform surged by 66% compared to the same period last year.
Analysts from Citi, Loop Capital, and Daiwa Securities responded positively to these recent developments, maintaining a Buy rating on AppLovin and significantly increasing the price targets. AppLovin has projected Q4 2024 revenue to be between $1.24 billion and $1.26 billion, with adjusted EBITDA expectations of $740 million to $760 million. These recent developments highlight the ongoing changes at AppLovin.
InvestingPro Insights
The recent stock sales by AppLovin Corp's CTO Shikin Vasily align with the company's strong market performance and valuation metrics. According to InvestingPro data, AppLovin's market capitalization stands at an impressive $111.89 billion, reflecting investor confidence in the mobile technology firm's growth trajectory.
AppLovin's financial health appears robust, with revenue for the last twelve months reaching $4.29 billion, marking a substantial 41.48% growth. This aligns with an InvestingPro Tip indicating that analysts anticipate sales growth in the current year, suggesting continued momentum for the company.
The stock's recent performance has been particularly noteworthy, with a staggering 749.41% price total return over the past year. This exceptional growth is further underscored by the stock trading at 97.31% of its 52-week high, indicating strong investor enthusiasm.
However, investors should note that AppLovin is trading at high valuation multiples, with a P/E ratio of 97.65 and a Price to Book ratio of 113.83. An InvestingPro Tip cautions that the stock is trading at a high earnings multiple, which may warrant careful consideration for value-oriented investors.
For those seeking a more comprehensive analysis, InvestingPro offers 20 additional tips on AppLovin, providing a deeper understanding of the company's financial position and market outlook.
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