AppFolio (NASDAQ:APPF) Shares Down 4.7% – What’s Next?

AppFolio, Inc. (NASDAQ:APPF) shares were down 4.7% during trading on Thursday . The company traded as low as $160.03 and last traded at $160.42. Approximately 189,776 shares traded hands during trading, a decline of 51% from the average daily volume of 388,546 shares. The stock had previously closed at $168.32.

Wall Street Analyst Weigh In

Several brokerages recently commented on APPF. Benchmark boosted their target price on AppFolio from $222.00 to $226.00 and gave the stock a “buy” rating in a report on Friday, April 24th. Wall Street Zen upgraded AppFolio from a “hold” rating to a “buy” rating in a research report on Sunday, March 15th. Piper Sandler dropped their price objective on AppFolio from $245.00 to $210.00 and set an “overweight” rating on the stock in a research note on Friday, April 24th. Weiss Ratings upgraded AppFolio from a “hold (c-)” rating to a “hold (c)” rating in a report on Tuesday, May 26th. Finally, UBS Group set a $210.00 price target on shares of AppFolio in a research report on Friday, April 24th. Nine analysts have rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $252.29.

AppFolio Stock Performance

The company has a 50 day simple moving average of $160.77 and a two-hundred day simple moving average of $188.78. The company has a market cap of $5.65 billion, a PE ratio of 38.16 and a beta of 0.80.

AppFolio (NASDAQ:APPF) last posted its quarterly earnings results on Thursday, April 23rd. The software maker reported $1.61 EPS for the quarter, beating the consensus estimate of $1.47 by $0.14. AppFolio had a net margin of 15.27% and a return on equity of 32.35%. The business had revenue of $262.21 million for the quarter, compared to analysts’ expectations of $258.13 million. During the same period in the previous year, the company posted $1.21 EPS. AppFolio’s revenue was up 20.7% on a year-over-year basis. As a group, analysts expect that AppFolio, Inc. will post 5.04 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, insider Elizabeth Erin Barat sold 1,978 shares of the company’s stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $158.12, for a total transaction of $312,761.36. Following the transaction, the insider directly owned 21,545 shares in the company, valued at approximately $3,406,695.40. This represents a 8.41% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO William Shane Trigg sold 3,584 shares of the business’s stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $152.50, for a total value of $546,560.00. Following the sale, the chief executive officer directly owned 76,547 shares of the company’s stock, valued at $11,673,417.50. This represents a 4.47% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 1.57% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. M&T Bank Corp increased its position in shares of AppFolio by 1,643.8% in the 4th quarter. M&T Bank Corp now owns 96,153 shares of the software maker’s stock valued at $22,370,000 after buying an additional 90,639 shares in the last quarter. Nordea Investment Management AB bought a new position in AppFolio in the fourth quarter valued at $8,795,000. Vanguard Group Inc. lifted its position in AppFolio by 4.1% during the 4th quarter. Vanguard Group Inc. now owns 2,560,460 shares of the software maker’s stock worth $595,691,000 after buying an additional 101,466 shares in the last quarter. Citigroup Inc. grew its holdings in shares of AppFolio by 140.3% in the 3rd quarter. Citigroup Inc. now owns 15,641 shares of the software maker’s stock valued at $4,312,000 after acquiring an additional 9,132 shares in the last quarter. Finally, Light Street Capital Management LLC bought a new position in shares of AppFolio in the 3rd quarter valued at about $5,513,000. 85.19% of the stock is currently owned by institutional investors.

About AppFolio

AppFolio, Inc is a Santa Barbara–based provider of cloud-based software solutions for the property management and legal industries. Founded in 2006 by former software executives, the company went public on the NASDAQ under the symbol APPF in 2015. Its original offering, AppFolio Property Manager, automates accounting, marketing, leasing, and maintenance functions for residential, commercial, student housing, and community association managers.

In 2019, AppFolio expanded its portfolio with the acquisition of MyCase, a web-based legal practice management platform for small to mid-size law firms.