AppLovin Insiders: Stock Selling Activity Insights
AppLovin Corporation (NASDAQ:APP) shareholders may be feeling a bit uneasy lately after Chief Technology Officer Vasily Shikin sold about US$190 million worth of shares at an average price of US$319. This sale reduced their stake by 11%, which is significant, but not overly alarming. It’s worth noting that this was the largest sale of AppLovin shares by an insider in the past year, even when the share price was slightly lower than the current price of US$333.
Insider selling can sometimes raise red flags, especially if it occurs below the current market price. However, it’s not a definitive signal that the stock is overvalued—it’s more of a cautionary sign. The fact that insider ownership of AppLovin stands at 36% of the company, valued at approximately US$41 billion, is reassuring. High insider ownership often suggests that company leadership prioritizes shareholder interests.
Over the past 12 months, there have been no insider purchases of AppLovin stock, but some selling activity has taken place. Despite this, given AppLovin’s profitability and growth, the lack of insider buying doesn’t set off major alarms. It’s positive to see a substantial amount of insider ownership, although the recent selling does make us tread cautiously.
While keeping an eye on insider transactions can provide insights into a company, it’s also crucial to consider other risk factors. In this case, we’ve identified 3 warning signs that investors should pay attention to for a comprehensive view of AppLovin’s situation.
It’s always a good idea to weigh the financial standing and risks of a company before making investment decisions. If you’re interested, take a look at our free list of companies with high return on equity and low debt for potential investment opportunities.
Please note that for this article, insiders refer to individuals who disclose their transactions to the relevant regulatory body regarding direct interests only, not including derivative transactions or indirect interests.
