In a recent transaction, Victoria Valenzuela, the Chief Legal Officer and Corporate Secretary of AppLovin Corp (NASDAQ:APP), sold shares of the company's stock. The transaction, which took place on April 4, 2024, involved the sale of 50,000 shares at a weighted average price of approximately $75.01 per share, resulting in a total value of $3.75 million.
The sale was executed under a pre-arranged trading plan, known as a Rule 10b5-1 plan, which Valenzuela had adopted on September 11, 2023. This type of plan allows company insiders to sell shares at predetermined times to avoid accusations of trading on non-public, material information.
The shares were sold in multiple transactions at prices ranging from $75.00 to $75.07, with the reported price representing the weighted average sale price. Valenzuela has committed to providing full information regarding the number of shares sold at each separate price upon request by the Securities and Exchange Commission, the issuer, or any of the issuer's security holders.
Following the sale, Valenzuela still owns a significant number of shares in AppLovin Corp, totaling 471,560 shares. Some of these shares are represented by Restricted Stock Units (RSUs), which typically vest over time and may provide the holder with additional shares of the company's stock upon vesting.
The transaction details were disclosed in a Form 4 filing with the Securities and Exchange Commission, which is a requirement for officers, directors, and significant shareholders of public companies to report their transactions in company stock.
InvestingPro Insights
AppLovin Corp's (NASDAQ:APP) recent insider stock sale coincides with an interesting period for the company's stock performance and valuation metrics. Victoria Valenzuela's transaction comes at a time when AppLovin Corp's market capitalization stands at a robust $25.71 billion, reflecting the market's significant interest in the company.
An InvestingPro Tip suggests that management has been aggressively buying back shares, which can often be interpreted as a sign of confidence in the company's future prospects and a potential mechanism for increasing shareholder value. This aligns with the company's solid revenue growth over the last twelve months as of Q1 2023, which was reported at 16.54%.
Furthermore, AppLovin Corp has exhibited a substantial one-year price total return of 375.8%, indicating a strong performance in the market. This is reinforced by the company's stock trading near its 52-week high, at 98.61% of the peak price. The stock's recent price movements may have been influenced by the expectation of net income growth this year, another InvestingPro Tip highlighting the company's promising financial trajectory.
InvestingPro Data also shows that the company has a Price/Earnings (P/E) ratio of 76.48, which adjusts to 66.25 for the last twelve months as of Q4 2023. While the P/E ratio may appear elevated, the company's Price/Earnings to Growth (PEG) ratio for the same period is notably low at 0.24, suggesting that the stock's pricing may be justified by its near-term earnings growth potential.
For readers interested in deeper analysis and more InvestingPro Tips, AppLovin Corp has additional insights available, totaling 20 tips, which can be accessed through InvestingPro's platform. Remember to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing a valuable resource for investors looking to make informed decisions.
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