AppFolio, Inc. (NASDAQ:APPF) Given Average Rating of "Moderate Buy" by Brokerages

Key Points

• AppFolio has a consensus analyst rating of “Moderate Buy”, with 9 of 10 analysts rating it a buy and an average 12-month price target of about $252.29.
• The company recently beat earnings and revenue estimates, reporting EPS of $1.61 versus $1.47 expected and revenue of $262.21 million, with quarterly revenue up 20.7% year over year.
• Despite positive analyst sentiment, there has been recent insider selling, including a major shareholder sale by Maurice J. Duca and additional insider sales over the past three months totaling 30,657 shares.

AppFolio, Inc. (NASDAQ:APPF - Get Free Report) has been given a consensus recommendation of "Moderate Buy" by the ten analysts that are presently covering the firm, MarketBeat Ratings reports. One analyst has rated the stock with a hold recommendation and nine have issued a buy recommendation on the company. The average 12-month price target among brokers that have issued a report on the stock in the last year is $252.2857.

Several equities analysts have recently commented on the stock. Piper Sandler lowered their price target on shares of AppFolio from $245.00 to $210.00 and set an "overweight" rating for the company in a research report on Friday, April 24th. Benchmark boosted their target price on shares of AppFolio from $222.00 to $226.00 and gave the company a "buy" rating in a research note on Friday, April 24th. Weiss Ratings lowered shares of AppFolio from a "hold (c)" rating to a "hold (c-)" rating in a research note on Thursday, June 11th. KeyCorp restated an "overweight" rating on shares of AppFolio in a research report on Monday, July 6th. Finally, Wall Street Zen lowered shares of AppFolio from a "buy" rating to a "hold" rating in a research note on Saturday, July 4th.

AppFolio Price Performance

NASDAQ:APPF opened at $174.46 on Wednesday. The firm has a market capitalization of $6.17 billion, a P/E ratio of 41.54 and a beta of 0.79. The business has a 50 day simple moving average of $162.70 and a 200 day simple moving average of $177.01. AppFolio has a 12-month low of $142.56 and a 12-month high of $326.04.

AppFolio (NASDAQ:APPF - Get Free Report) last issued its earnings results on Thursday, April 23rd. The software maker reported $1.61 earnings per share for the quarter, topping the consensus estimate of $1.47 by $0.14. The firm had revenue of $262.21 million for the quarter, compared to analyst estimates of $258.13 million. AppFolio had a return on equity of 32.35% and a net margin of 15.27%.The firm's revenue for the quarter was up 20.7% on a year-over-year basis. During the same period last year, the company earned $1.21 earnings per share. Research analysts anticipate that AppFolio will post 5.04 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, major shareholder Maurice J. Duca sold 7,200 shares of the firm's stock in a transaction that occurred on Tuesday, July 7th. The stock was sold at an average price of $180.32, for a total value of $1,298,304.00. Following the sale, the insider directly owned 42,400 shares in the company, valued at $7,645,568. This trade represents a 14.52% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Elizabeth Erin Barat sold 1,978 shares of AppFolio stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $158.12, for a total value of $312,761.36. Following the sale, the insider directly owned 21,545 shares in the company, valued at $3,406,695.40. The trade was a 8.41% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders sold 30,657 shares of company stock worth $5,310,740. 1.57% of the stock is owned by company insiders.

Institutional Investors Weigh In On AppFolio

Several institutional investors have recently bought and sold shares of APPF. M&T Bank Corp boosted its position in shares of AppFolio by 1,643.8% during the 4th quarter. M&T Bank Corp now owns 96,153 shares of the software maker's stock valued at $22,370,000 after purchasing an additional 90,639 shares in the last quarter. Nordea Investment Management AB acquired a new position in AppFolio in the fourth quarter worth approximately $8,795,000. Vanguard Group Inc. increased its holdings in shares of AppFolio by 4.1% in the fourth quarter. Vanguard Group Inc. now owns 2,560,460 shares of the software maker's stock valued at $595,691,000 after buying an additional 101,466 shares in the last quarter. Quantum Capital Management LLC NJ bought a new position in shares of AppFolio in the fourth quarter valued at $7,995,000. Finally, Riverbridge Partners LLC acquired a new stake in shares of AppFolio during the 1st quarter valued at $13,906,000. Institutional investors and hedge funds own 85.19% of the company's stock.

AppFolio Company Profile

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.

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