AppFolio, Inc. (NASDAQ:APPF) Stock Rated "Moderate Buy" by Sell-Side Brokerages

Key Points

• Analysts maintain a “Moderate Buy” consensus on AppFolio, with eight buy ratings, one strong-buy rating and three holds. The average 12-month price target is $245.38, above the reported share price of $217.33.
• AppFolio exceeded quarterly expectations, reporting $1.82 EPS and $295.69 million in revenue, while revenue increased 18.5% year over year. Management projects 2026 revenue of $1.122 billion to $1.127 billion and a non-GAAP operating margin of 26.5% to 27.5%.
• Institutional ownership remains high at 85.19%, with several major investors increasing their positions. However, insiders sold approximately $27.9 million of shares over the past 90 days, including sales by a major shareholder and the CFO under pre-arranged trading plans.

Shares of AppFolio, Inc. (NASDAQ:APPF - Get Free Report) have earned a consensus recommendation of "Moderate Buy" from the twelve brokerages that are covering the firm, Marketbeat.com reports. Three equities research analysts have rated the stock with a hold recommendation, eight have assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1-year target price among analysts that have covered the stock in the last year is $245.38.

Several research analysts recently weighed in on APPF shares. Guggenheim initiated coverage on AppFolio in a research report on Wednesday, July 22nd. They issued a "buy" rating and a $232.00 price objective for the company. DA Davidson set a $240.00 target price on AppFolio in a research report on Monday, September 28th. Weiss Ratings raised AppFolio from a "hold (c-)" rating to a "hold (c)" rating in a research note on Tuesday, August 11th. Zacks Research lowered AppFolio from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, September 23rd. Finally, KeyCorp reiterated an "overweight" rating on shares of AppFolio in a report on Wednesday, October 14th.

Insider Activity

In other AppFolio news, major shareholder Maurice Duca sold 2,656 shares of the company's stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $221.85, for a total value of $589,233.60. Following the transaction, the insider owned 8,000 shares of the company's stock, valued at $1,774,800. This represents a 24.92% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Timothy Eaton sold 373 shares of the company's stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $202.61, for a total transaction of $75,573.53. Following the completion of the transaction, the chief financial officer directly owned 16,714 shares in the company, valued at $3,386,423.54. The trade was a 2.18% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 141,817 shares of company stock worth $27,942,484. 1.57% of the stock is owned by insiders.

Hedge Funds Weigh In On AppFolio

Several large investors have recently made changes to their positions in APPF. Principal Financial Group Inc. increased its holdings in AppFolio by 20.9% in the 1st quarter. Principal Financial Group Inc. now owns 1,505,882 shares of the software maker's stock valued at $237,665,000 after purchasing an additional 259,933 shares during the last quarter. Nellore Capital Management LLC raised its position in AppFolio by 2.9% in the second quarter. Nellore Capital Management LLC now owns 654,865 shares of the software maker's stock valued at $105,008,000 after purchasing an additional 18,563 shares during the period. Arrowstreet Capital Limited Partnership lifted its stake in AppFolio by 6.5% during the first quarter. Arrowstreet Capital Limited Partnership now owns 384,529 shares of the software maker's stock worth $60,686,000 after purchasing an additional 23,428 shares in the last quarter. Bank of America Corp DE lifted its stake in AppFolio by 21.7% during the first quarter. Bank of America Corp DE now owns 345,603 shares of the software maker's stock worth $54,543,000 after purchasing an additional 61,641 shares in the last quarter. Finally, Dimensional Fund Advisors LP lifted its stake in AppFolio by 3.3% during the first quarter. Dimensional Fund Advisors LP now owns 296,627 shares of the software maker's stock worth $46,812,000 after purchasing an additional 9,600 shares in the last quarter. 85.19% of the stock is currently owned by institutional investors and hedge funds.

AppFolio Price Performance

NASDAQ:APPF opened at $217.33 on Friday. The firm has a market capitalization of $7.70 billion, a price-to-earnings ratio of 49.62 and a beta of 0.89. The company's 50-day moving average is $212.16 and its two-hundred day moving average is $182.79. AppFolio has a 1-year low of $142.56 and a 1-year high of $265.02.

AppFolio (NASDAQ:APPF - Get Free Report) last posted its quarterly earnings results on Thursday, October 22nd. The software maker reported $1.82 earnings per share for the quarter, beating the consensus estimate of $1.79 by $0.03. The business had revenue of $295.69 million during the quarter, compared to analysts' expectations of $294.46 million. AppFolio had a net margin of 15.13% and a return on equity of 32.42%. The business's revenue for the quarter was up 18.5% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.31 EPS. As a group, equities analysts anticipate that AppFolio will post 5.18 earnings per share for the current fiscal year.

Trending Headlines about AppFolio

Here are the key news stories impacting AppFolio this week:

• Positive Sentiment: Q3 earnings and revenue topped estimates. AppFolio reported adjusted earnings of $1.82 per share, above the $1.78-$1.79 consensus range, while revenue reached $295.69 million versus expectations of approximately $294.46 million. EPS increased from $1.31 in the year-ago quarter. AppFolio Q3 Earnings and Revenues Beat Estimates
• Positive Sentiment: Growth remained solid. Quarterly revenue rose 18.5% year over year, and AppFolio reported a 15.13% net margin and 32.42% return on equity, reinforcing the company’s profitability profile. AppFolio Earnings Results
• Positive Sentiment: Management expects continued expansion in 2026. AppFolio anticipates full-year revenue of $1.122 billion to $1.127 billion and a non-GAAP operating margin of 26.5% to 27.5%. The combination of double-digit growth and strong profitability supports the longer-term bullish case. AppFolio 2026 Revenue and Margin Outlook
• Neutral Sentiment: The earnings beats were relatively narrow. Although AppFolio exceeded consensus, the revenue and EPS outperformance was modest, so investors may focus on future service-revenue growth and whether the outlook leaves room for further upward revisions. AppFolio Q3 Key Metrics

AppFolio Company Profile

AppFolio, Inc is a cloud-based software company that provides technology solutions for the real estate industry. Its platform is designed primarily for property management businesses, helping them manage accounting, leasing, maintenance, communications, payments, reporting and other operational activities through a centralized system.

The company's products serve a range of property managers, including those overseeing residential, commercial, community association, student housing and senior living properties.

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