AppFolio (NASDAQ:APPF) Hits New 52-Week Low - Should You Sell?

Key Points

• AppFolio hit a new 52-week low, trading as low as $148.35 (down ~3.2%) and currently below its 50-day ($173.59) and 200-day ($215.09) moving averages, signaling near-term weakness.
• Despite the slide, analysts maintain a consensus "Buy" rating with a consensus target price of $263.86, although several firms have trimmed their price targets recently.
• Fundamentals showed strength as AppFolio beat estimates with $1.39 EPS (vs. $1.22) and $248.2M revenue (+21.7% YoY), while CEO William Shane Trigg sold 6,963 shares (an ~11.6% reduction in his holdings), with insiders owning 4.68% of the stock.

AppFolio, Inc. (NASDAQ:APPF - Get Free Report) hit a new 52-week low on Thursday . The company traded as low as $148.35 and last traded at $148.1450, with a volume of 19791 shares trading hands. The stock had previously closed at $154.66.

Analysts Set New Price Targets

APPF has been the subject of a number of research reports. KeyCorp reiterated an "overweight" rating on shares of AppFolio in a research note on Monday, February 2nd. UBS Group set a $260.00 price objective on AppFolio and gave the company a "buy" rating in a research note on Friday, January 30th. Piper Sandler reduced their price objective on AppFolio from $350.00 to $245.00 and set an "overweight" rating for the company in a research note on Friday, January 30th. Weiss Ratings cut AppFolio from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday, January 16th. Finally, JPMorgan Chase & Co. reduced their price objective on AppFolio from $330.00 to $300.00 and set an "overweight" rating for the company in a research note on Friday, January 30th. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat, AppFolio has a consensus rating of "Buy" and a consensus target price of $263.86.

AppFolio Stock Down 3.2%

The firm has a market cap of $5.39 billion, a price-to-earnings ratio of 38.44 and a beta of 0.84. The stock has a fifty day moving average price of $173.59 and a 200-day moving average price of $215.09.

AppFolio (NASDAQ:APPF - Get Free Report) last released its earnings results on Thursday, January 29th. The software maker reported $1.39 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.22 by $0.17. The business had revenue of $248.19 million for the quarter, compared to analyst estimates of $246.56 million. AppFolio had a return on equity of 29.79% and a net margin of 14.82%.The company's revenue for the quarter was up 21.7% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.92 earnings per share. As a group, research analysts expect that AppFolio, Inc. will post 3.96 earnings per share for the current year.

Insider Activity

In other news, CEO William Shane Trigg sold 6,963 shares of the business's stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $169.73, for a total value of $1,181,829.99. Following the transaction, the chief executive officer owned 52,920 shares of the company's stock, valued at approximately $8,982,111.60. The trade was a 11.63% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 4.68% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the stock. Truist Financial Corp increased its holdings in shares of AppFolio by 1.1% in the third quarter. Truist Financial Corp now owns 3,928 shares of the software maker's stock valued at $1,083,000 after purchasing an additional 43 shares during the period. Amalgamated Bank increased its holdings in shares of AppFolio by 0.4% in the third quarter. Amalgamated Bank now owns 11,068 shares of the software maker's stock valued at $3,051,000 after purchasing an additional 46 shares during the period. Linden Thomas Advisory Services LLC increased its holdings in shares of AppFolio by 3.1% in the third quarter. Linden Thomas Advisory Services LLC now owns 1,515 shares of the software maker's stock valued at $418,000 after purchasing an additional 46 shares during the period. Woodline Partners LP grew its holdings in AppFolio by 2.9% during the first quarter. Woodline Partners LP now owns 1,754 shares of the software maker's stock worth $386,000 after acquiring an additional 50 shares during the period. Finally, EverSource Wealth Advisors LLC raised its position in AppFolio by 101.8% in the fourth quarter. EverSource Wealth Advisors LLC now owns 111 shares of the software maker's stock worth $26,000 after acquiring an additional 56 shares in the last quarter. Institutional investors and hedge funds own 85.19% of the company's stock.

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.

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