In a recent transaction, an entity related to global investment firm KKR & Co. sold a majority of its stake in AppLovin Corp (NASDAQ: ), a company specializing in marketing software and mobile technology companies for consumer applications. The sale, which took place on May 13, 2024, involved the sale of 17,500,000 shares of Class A common stock at a price of $83.36 per share, for a total value of approximately $1.46 billion.
The shares are held by KKR Denali Holdings LP, KKR Denali Holdings GP LLC, KKR Americas Fund XII LP, KKR Associates Americas XII LP and KKR Americas XII Ltd, all of which are affiliated with KKR & Co. Corp ownership of ten percent or more, showing significant influence over the company.
The transaction simultaneously converts Class B common shares into an equal number of Class A common shares and does not involve any currency exchange. The conversion included 17,700,000 shares of Class B common stock, resulting in an equivalent number of Class A shares. Following the sale, the reporting entity’s aggregate ownership of Class A common stock decreased to 366,567 shares.
Additionally, the filing states that 229,773 shares were allocated, which does not affect the overall financial value of the transaction as the shares were allocated for the purpose of charitable contributions by partners and shareholders of the reporting entity.
Investors and market watchers typically keep a close eye on such sales because they may reflect an investment firm’s view of a company’s future prospects or liquidity needs. These transactions are reported to the SEC on Form 4, providing transparency into the trading activities of company insiders and major shareholders.
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The reported entities have disclaimed beneficial ownership, other than a pecuniary interest, in these securities, and this filing does not mean that they are beneficial owners within the meaning of Section 16 of the Securities Exchange Act of 1934 or otherwise.
Headquartered in Palo Alto, California, AppLovin Corp remains a major player in the technology industry, providing a suite of software solutions that enable developers to market, monetize, analyze and publish their apps. The company’s shares are publicly traded on the Nasdaq exchange under the symbol APP.
Investment Professional Insights
AppLovin Corp (NASDAQ: APP ) continues to present an interesting picture for investors following a massive sale of stock by the KKR & Co. entity. According to InvestingPro, the company’s management has been actively participating in share repurchases, showing confidence in the company’s valuation and future prospects. This is consistent with the InvestingPro Tip, which shows a high shareholder yield, which is attractive to investors looking for companies with the potential for capital returns.
InvestingPro Data further shows that AppLovin has a market capitalization of $27.66 billion and an adjusted price-to-earnings ratio of 43.4 for the trailing 12 months to the first quarter of 2024. This might be considered high, but it was supported by strong revenue growth of 24.72% during the same period. Furthermore, the company’s 1-year total price return is as high as 268.71%, reflecting strong market performance and investor confidence.
For investors interested in the technology sector and considering AppLovin as a potential addition to their portfolio, it’s worth noting that the company is trading close to its 52-week high, with its price being 95.03% of that peak. This data point, combined with last year’s strong returns, could indicate investors are optimistic about the outlook. For a more in-depth look at AppLovin’s financial health and other InvestingPro tips, such as expected sales growth and net profit growth expectations for the current year, investors can explore the full set of 20 tips available on InvestingPro.Remember to use coupon code PRONEWS24 Get an additional 10% off with yearly or annual Pro and Pro+ subscriptions.
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