In a recent transaction, entities associated with global investment firm KKR & Co. have sold a significant portion of their holdings in AppLovin Corp (NASDAQ:APP), a mobile technology company specializing in marketing software and consumer apps. The sale, which took place on May 13, 2024, involved the disposal of 17,500,000 shares of Class A Common Stock at a price of $83.36 per share, totaling approximately $1.46 billion.
The shares were held by KKR Denali Holdings L.P., KKR Denali Holdings GP LLC, KKR Americas Fund XII L.P., KKR Associates Americas XII L.P., and KKR Americas XII Ltd, all of which are affiliated with KKR & Co. These entities are reported to have a ten percent or greater ownership in AppLovin Corp, indicating a significant influence in the company.
This transaction comes alongside a conversion of Class B Common Stock into an equal number of Class A Common Stock shares, which did not involve any monetary exchange. The conversion included 17,700,000 shares of Class B Common Stock, resulting in an equal number of Class A shares. Following the sale, the reporting entities' combined ownership in Class A Common Stock dropped to 366,567 shares.
Additionally, the filing noted a distribution of 229,773 shares, which did not affect the overall financial value of the transaction, as these were distributed for the purpose of charitable donations by the partners and shareholders of the reporting entities.
Investors and market watchers typically monitor such sales closely, as they may reflect the investment firm's view on the company's future prospects or liquidity needs. The transactions were reported in a Form 4 filing with the Securities and Exchange Commission, providing transparency into the trading activities of company insiders and major shareholders.
The reported entities have disclaimed beneficial ownership of the securities, except to the extent of their pecuniary interest, and the filing does not imply that they are beneficial owners for the purposes of Section 16 of the Securities Exchange Act of 1934 or otherwise.
AppLovin Corp, with its headquarters in Palo Alto, California, remains a key player in the tech industry, providing a suite of software solutions that enable developers to market, monetize, analyze, and publish their apps. The company's stock is publicly traded on the NASDAQ exchange under the ticker symbol APP.
InvestingPro Insights
Following the substantial sale of shares by KKR & Co. entities, AppLovin Corp (NASDAQ:APP) continues to present an interesting profile for investors. According to InvestingPro, the company's management has been actively engaging in share buybacks, signaling confidence in the company's valuation and future prospects. This aligns with an InvestingPro Tip indicating a high shareholder yield, which can be attractive to investors seeking companies with potential for capital returns.
InvestingPro Data further reveals that AppLovin's market capitalization stands at 27.66 billion USD, with an adjusted P/E ratio for the last twelve months as of Q1 2024 at 43.4. This might be considered high, but it is supported by a robust revenue growth of 24.72% during the same period. Additionally, the company has seen a significant 1-year price total return of 268.71%, reflecting strong market performance and investor confidence.
For investors interested in the tech sector and considering AppLovin as a potential addition to their portfolio, it's worth noting that the company is trading near its 52-week high, with a price 95.03% of that peak. This data point, coupled with the strong returns over the last year, might suggest a bullish outlook among investors. For a deeper dive into AppLovin's financials and additional InvestingPro Tips, such as anticipated sales growth in the current year and expectations for net income growth, investors can explore the full set of 20 tips available on InvestingPro. Remember to use coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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