AppFolio (NASDAQ:APPF) Posts Earnings Results, Beats Expectations By $0.14 EPS

Key Points

• AppFolio beat expectations: reported EPS of $1.61, beating consensus by $0.14, and revenue of $262.21 million versus estimates of $258.13 million.
• Despite the beat, shares fell $6.11 to $152.30 on above-average volume; the company has a market cap of $5.48 billion and a P/E of 39.25 with a 12‑month range of $142.73–$326.04.
• Insider and institutional activity notable: CEO William Shane Trigg sold 6,963 shares (an 11.63% reduction in his holdings), institutional investors own 85.19% of the stock, and analysts' consensus is a Buy with a $263.86 target price.

AppFolio (NASDAQ:APPF - Get Free Report) announced its quarterly earnings data on Thursday. The software maker reported $1.61 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.47 by $0.14, FiscalAI reports. The business had revenue of $262.21 million for the quarter, compared to analysts' expectations of $258.13 million. AppFolio had a net margin of 14.82% and a return on equity of 29.79%.

AppFolio Stock Performance

Shares of AppFolio stock traded down $6.11 on Thursday, hitting $152.30. The stock had a trading volume of 573,950 shares, compared to its average volume of 393,151. The stock has a 50 day moving average of $166.85 and a 200 day moving average of $206.80. AppFolio has a twelve month low of $142.73 and a twelve month high of $326.04. The firm has a market capitalization of $5.48 billion, a P/E ratio of 39.25 and a beta of 0.84.

Insider Activity

In other news, CEO William Shane Trigg sold 6,963 shares of the company'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 completion of the transaction, the chief executive officer owned 52,920 shares of the company's stock, valued at $8,982,111.60. This represents a 11.63% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. 4.68% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in APPF. Greenstone Partners & Co. LLC acquired a new position in shares of AppFolio in the fourth quarter valued at approximately $43,647,000. Millennium Management LLC increased its position in AppFolio by 158.6% during the 4th quarter. Millennium Management LLC now owns 281,495 shares of the software maker's stock valued at $65,490,000 after purchasing an additional 172,627 shares during the period. Caledonia Private Investments Pty Ltd increased its position in AppFolio by 45.9% during the 4th quarter. Caledonia Private Investments Pty Ltd now owns 332,635 shares of the software maker's stock valued at $77,388,000 after purchasing an additional 104,609 shares during the period. Price T Rowe Associates Inc. MD increased its position in AppFolio by 17.2% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 669,317 shares of the software maker's stock valued at $155,717,000 after purchasing an additional 98,230 shares during the period. Finally, First Trust Advisors LP increased its position in AppFolio by 106.2% during the 4th quarter. First Trust Advisors LP now owns 182,591 shares of the software maker's stock valued at $42,480,000 after purchasing an additional 94,052 shares during the period. Institutional investors and hedge funds own 85.19% of the company's stock.

Analysts Set New Price Targets

A number of research analysts recently issued reports on APPF shares. Weiss Ratings cut shares of AppFolio from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday, January 16th. Wall Street Zen raised shares of AppFolio from a "hold" rating to a "buy" rating in a research note on Sunday, March 15th. Benchmark began coverage on shares of AppFolio in a research note on Thursday, March 26th. They issued a "buy" rating and a $222.00 price objective on the stock. UBS Group set a $260.00 target price on shares of AppFolio and gave the stock a "buy" rating in a report on Friday, January 30th. Finally, Wells Fargo & Company reissued a "buy" rating on shares of AppFolio in a report on Thursday, January 15th. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat, AppFolio has an average rating of "Buy" and a consensus target price of $263.86.

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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