AppFolio (NASDAQ:APPF) Stock Price Down 5.6% - Here's Why

Key Points

• AppFolio's stock fell 5.6% on Wednesday, closing at $260.13 after previously trading at $275.66, with a trading volume decline of 42% from its average.
• Analysts have a consensus rating of "Moderate Buy" for AppFolio, with an average price target of $311.80, following recent upgrades from various firms.
• Insider selling activity has been noted, with significant shareholders selling thousands of shares, indicating a decrease in their positions in the company.

AppFolio, Inc. (NASDAQ:APPF - Get Free Report) dropped 5.6% on Wednesday . The stock traded as low as $261.94 and last traded at $260.13. Approximately 176,599 shares changed hands during trading, a decline of 42% from the average daily volume of 303,510 shares. The stock had previously closed at $275.66.

Analyst Upgrades and Downgrades

APPF has been the topic of several recent research reports. Keefe, Bruyette & Woods upped their price target on AppFolio from $295.00 to $311.00 and gave the stock a "market perform" rating in a report on Wednesday, September 3rd. DA Davidson restated a "buy" rating and set a $350.00 price target on shares of AppFolio in a report on Friday, August 1st. Finally, Piper Sandler upgraded AppFolio from a "neutral" rating to an "overweight" rating and upped their price target for the stock from $240.00 to $350.00 in a report on Friday, August 1st. Four analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $311.80.

AppFolio Trading Down 6.9%

The firm has a market cap of $9.20 billion, a PE ratio of 46.31 and a beta of 0.89. The business has a fifty day moving average price of $278.25 and a 200 day moving average price of $241.82.

AppFolio (NASDAQ:APPF - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The software maker reported $1.38 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.27 by $0.11. The firm had revenue of $235.58 million for the quarter, compared to the consensus estimate of $230.10 million. AppFolio had a return on equity of 26.32% and a net margin of 23.54%.The firm's quarterly revenue was up 19.4% compared to the same quarter last year. During the same quarter last year, the business posted $1.12 EPS. AppFolio has set its FY 2025 guidance at EPS. On average, research analysts expect that AppFolio, Inc. will post 3.96 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, major shareholder Klaus Schauser sold 3,000 shares of the firm's stock in a transaction that occurred on Friday, August 1st. The stock was sold at an average price of $295.14, for a total transaction of $885,420.00. Following the transaction, the insider owned 300,000 shares in the company, valued at $88,542,000. This trade represents a 0.99% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, major shareholder Maurice J. Duca sold 3,100 shares of the firm's stock in a transaction that occurred on Monday, August 4th. The stock was sold at an average price of $321.38, for a total value of $996,278.00. Following the transaction, the insider owned 42,400 shares in the company, valued at $13,626,512. This represents a 6.81% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 58,803 shares of company stock worth $16,938,949 in the last quarter. 4.68% of the stock is owned by insiders.

Institutional Trading of AppFolio

A number of hedge funds have recently added to or reduced their stakes in the stock. Kayne Anderson Rudnick Investment Management LLC lifted its position in AppFolio by 84.4% during the 1st quarter. Kayne Anderson Rudnick Investment Management LLC now owns 773,579 shares of the software maker's stock worth $170,110,000 after acquiring an additional 354,061 shares during the period. William Blair Investment Management LLC lifted its position in AppFolio by 73.6% during the 2nd quarter. William Blair Investment Management LLC now owns 733,428 shares of the software maker's stock worth $168,894,000 after acquiring an additional 310,834 shares during the period. Geode Capital Management LLC lifted its position in AppFolio by 0.3% during the 2nd quarter. Geode Capital Management LLC now owns 438,522 shares of the software maker's stock worth $100,999,000 after acquiring an additional 1,458 shares during the period. Principal Financial Group Inc. lifted its position in AppFolio by 121.2% during the 1st quarter. Principal Financial Group Inc. now owns 401,888 shares of the software maker's stock worth $88,375,000 after acquiring an additional 220,239 shares during the period. Finally, Invesco Ltd. lifted its position in AppFolio by 1.9% during the 1st quarter. Invesco Ltd. now owns 347,125 shares of the software maker's stock worth $76,333,000 after acquiring an additional 6,528 shares during the period. 85.19% of the stock is owned by institutional investors and hedge funds.

About AppFolio

AppFolio, Inc, together with its subsidiaries, provides cloud business management solutions for the real estate industry in the United States. The company provides a cloud-based platform that enables users to automate and optimize common workflows; tools that assist with leasing, maintenance, and accounting; and other technology and services offered by third parties.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.