Assenagon Asset Management S.A. Makes New Investment in AppFolio, Inc. $APPF

Key Points

• Assenagon Asset Management purchased 19,303 AppFolio shares worth approximately $3.1 million, while institutional investors collectively own 85.19% of the company.
• AppFolio exceeded quarterly expectations with $1.71 in EPS and $281.12 million in revenue, up 19.3% year over year. Analysts maintain a consensus “Buy” rating with an average price target of $243.50.
• The stock trades at a demanding valuation, with a P/E ratio near 47, and insiders have sold more than 112,000 shares worth approximately $21.1 million over the past 90 days, although several transactions were conducted under pre-arranged plans.

Assenagon Asset Management S.A. bought a new stake in AppFolio, Inc. (NASDAQ:APPF - Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund bought 19,303 shares of the software maker's stock, valued at approximately $3,095,000. Assenagon Asset Management S.A. owned 0.05% of AppFolio as of its most recent SEC filing.

Several other large investors have also modified their holdings of the business. Woodline Partners LP boosted its stake 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 buying an additional 50 shares during the period. EverSource Wealth Advisors LLC raised its stake in shares of AppFolio by 101.8% in the 4th quarter. EverSource Wealth Advisors LLC now owns 111 shares of the software maker's stock valued at $26,000 after acquiring an additional 56 shares during the period. Mercer Global Advisors Inc. ADV lifted its holdings in shares of AppFolio by 4.8% in the 3rd quarter. Mercer Global Advisors Inc. ADV now owns 1,263 shares of the software maker's stock worth $348,000 after acquiring an additional 58 shares during the last quarter. Northwestern Mutual Wealth Management Co. lifted its holdings in shares of AppFolio by 48.8% in the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 192 shares of the software maker's stock worth $53,000 after acquiring an additional 63 shares during the last quarter. Finally, Northwestern Mutual Investment Management Company LLC boosted its position in shares of AppFolio by 1.3% during the 4th quarter. Northwestern Mutual Investment Management Company LLC now owns 5,162 shares of the software maker's stock worth $1,201,000 after purchasing an additional 64 shares during the period. Institutional investors and hedge funds own 85.19% of the company's stock.

Wall Street Analysts Forecast Growth

APPF has been the subject of several research analyst reports. Piper Sandler lowered their price target on AppFolio from $245.00 to $210.00 and set an "overweight" rating for the company in a research report on Friday, April 24th. Benchmark raised their target price on AppFolio from $222.00 to $226.00 and gave the company a "buy" rating in a report on Friday, April 24th. DA Davidson set a $225.00 target price on AppFolio in a report on Friday, July 24th. Guggenheim began coverage on AppFolio in a research report on Wednesday, July 22nd. They issued a "buy" rating and a $232.00 target price for the company. Finally, Zacks Research upgraded shares of AppFolio from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, July 28th. Two research analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Buy" and a consensus target price of $243.50.

AppFolio News Roundup

Here are the key news stories impacting AppFolio this week:

• Positive Sentiment: AppFolio’s latest quarter exceeded expectations: earnings reached $1.71 per share versus the $1.69 consensus estimate, while revenue of $281.12 million surpassed forecasts of $277.35 million. Revenue grew 19.3% year over year, and analysts expect full-year earnings of approximately $5.16 per share. AppFolio quarterly results
• Positive Sentiment: Analyst coverage remains constructive. AppFolio carries a consensus “Buy” rating and an average price target of $243.50, with Guggenheim initiating coverage at “Buy” and Benchmark raising its target to $226. AppFolio analyst ratings
• Positive Sentiment: Institutional ownership provides additional support: 85.19% of shares are held by institutions and hedge funds, while Vanguard, Principal Financial, T. Rowe Price and William Blair recently increased their positions. AppFolio institutional ownership
• Neutral Sentiment: Major shareholder Maurice J. Duca sold 17,900 shares for approximately $3.57 million across August 10–11. The transactions were executed under a pre-arranged Rule 10b5-1 plan, making them a less clear indicator of current confidence in AppFolio’s outlook. SEC filing for Maurice Duca
• Neutral Sentiment: General Counsel Evan Pickering sold 463 shares, while insider Don Rigler sold 150 shares. These sales were also made through pre-arranged plans, primarily to cover tax withholding on vested equity awards. SEC filings for AppFolio insider sales
• Negative Sentiment: Despite its growth, APPF trades at a relatively demanding valuation, with a price-to-earnings ratio near 45. Repeated insider selling could create a short-term overhang, while Piper Sandler’s lower $210 target and Wall Street Zen’s downgrade to “Hold” highlight downside risks if growth or execution weakens.

AppFolio Trading Up 3.7%

AppFolio stock opened at $203.97 on Friday. The firm has a market capitalization of $7.22 billion, a P/E ratio of 46.57 and a beta of 0.78. AppFolio, Inc. has a twelve month low of $142.56 and a twelve month high of $288.73. The stock's fifty day simple moving average is $172.09 and its 200-day simple moving average is $170.49.

AppFolio (NASDAQ:APPF - Get Free Report) last released its earnings results on Thursday, July 23rd. The software maker reported $1.71 EPS for the quarter, topping the consensus estimate of $1.69 by $0.02. The firm had revenue of $281.12 million during the quarter, compared to analysts' expectations of $277.35 million. AppFolio had a return on equity of 32.42% and a net margin of 15.13%.AppFolio's revenue for the quarter was up 19.3% on a year-over-year basis. During the same period in the previous year, the firm posted $1.38 EPS. Sell-side analysts predict that AppFolio, Inc. will post 5.16 earnings per share for the current year.

Insider Buying and Selling

In related news, insider Don Rigler sold 150 shares of the firm's stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $195.87, for a total value of $29,380.50. Following the sale, the insider owned 4,132 shares of the company's stock, valued at $809,334.84. This trade represents a 3.50% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, major shareholder Maurice J. Duca sold 5,442 shares of AppFolio stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $201.13, for a total transaction of $1,094,549.46. Following the completion of the transaction, the insider owned 73,132 shares of the company's stock, valued at $14,709,039.16. This represents a 6.93% decrease in their position. 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. Over the last ninety days, insiders have sold 112,969 shares of company stock worth $21,112,424. Company insiders own 1.57% of the company's stock.

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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This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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