AppFolio (NASDAQ:APPF) Posts Earnings Results, Beats Expectations By $0.02 EPS

Key Points

• AppFolio reported quarterly earnings of $1.71 per share, topping analyst expectations by $0.02 and also beating revenue estimates with $281.12 million in sales versus $277.35 million expected.
• The stock rose on the news, trading at $163.95 after the earnings release, with the company now carrying a market cap of about $5.8 billion.
• Recent insider activity showed selling pressure, including CEO William Shane Trigg and General Counsel Evan Pickering disposing of shares, while institutional ownership remains high at 85.19%.

AppFolio (NASDAQ:APPF - Get Free Report) posted its quarterly earnings results on Thursday. The software maker reported $1.71 EPS for the quarter, beating the consensus estimate of $1.69 by $0.02, FiscalAI reports. AppFolio had a return on equity of 32.35% and a net margin of 15.27%.The firm had revenue of $281.12 million during the quarter, compared to analysts' expectations of $277.35 million.

AppFolio Stock Performance

Shares of NASDAQ APPF traded up $1.74 during trading on Thursday, reaching $163.95. The stock had a trading volume of 917,735 shares, compared to its average volume of 387,744. The company has a market cap of $5.80 billion, a P/E ratio of 39.04 and a beta of 0.79. AppFolio has a fifty-two week low of $142.56 and a fifty-two week high of $326.04. The business's 50-day moving average price is $164.22 and its 200-day moving average price is $174.44.

Insider Buying and Selling

In other news, CEO William Shane Trigg sold 3,584 shares of the company's stock in a transaction on Friday, May 15th. The stock was sold at an average price of $152.50, for a total transaction of $546,560.00. Following the sale, the chief executive officer owned 76,547 shares of the company's stock, valued at approximately $11,673,417.50. This represents a 4.47% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Evan Pickering sold 660 shares of the stock in a transaction on Friday, June 12th. The shares were sold at an average price of $155.25, for a total value of $102,465.00. Following the completion of the sale, the general counsel owned 6,555 shares in the company, valued at approximately $1,017,663.75. The trade was a 9.15% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 30,657 shares of company stock worth $5,310,740 over the last 90 days. 1.57% of the stock is owned by insiders.

Hedge Funds Weigh In On AppFolio

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Royal Bank of Canada increased its stake in shares of AppFolio by 22.6% during the first quarter. Royal Bank of Canada now owns 45,452 shares of the software maker's stock worth $9,993,000 after buying an additional 8,367 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in shares of AppFolio by 23.5% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 384 shares of the software maker's stock valued at $84,000 after purchasing an additional 73 shares in the last quarter. Millennium Management LLC raised its holdings in shares of AppFolio by 237.7% in the 1st quarter. Millennium Management LLC now owns 18,055 shares of the software maker's stock valued at $3,970,000 after purchasing an additional 12,709 shares in the last quarter. Jones Financial Companies Lllp lifted its position in shares of AppFolio by 164.8% during the 1st quarter. Jones Financial Companies Lllp now owns 654 shares of the software maker's stock worth $144,000 after purchasing an additional 407 shares during the last quarter. Finally, Goldman Sachs Group Inc. grew its stake in shares of AppFolio by 322.5% during the first quarter. Goldman Sachs Group Inc. now owns 66,777 shares of the software maker's stock worth $14,684,000 after purchasing an additional 50,970 shares in the last quarter. Hedge funds and other institutional investors own 85.19% of the company's stock.

Analyst Ratings Changes

APPF has been the subject of a number of recent research reports. Benchmark raised their target price on AppFolio from $222.00 to $226.00 and gave the stock a "buy" rating in a research note on Friday, April 24th. Piper Sandler cut their price objective 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. Guggenheim assumed coverage on shares of AppFolio in a report on Wednesday. They issued a "buy" rating and a $232.00 target price on the stock. Wall Street Zen upgraded shares of AppFolio from a "hold" rating to a "buy" rating in a report on Saturday, July 18th. Finally, UBS Group set a $210.00 price target on shares of AppFolio in a research report on Friday, April 24th. Nine investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $249.75.

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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