HMI Capital Management L.P. Buys Shares of 75,000 AppFolio, Inc. $APPF

Key Points

• HMI Capital Management acquired 75,000 AppFolio shares worth approximately $12.0 million, making up 1.7% of its portfolio and about 0.21% of AppFolio’s outstanding stock.
• AppFolio reported quarterly EPS of $1.71, exceeding estimates by $0.02, while revenue reached $281.1 million, up 19.3% year over year. Analysts maintain a consensus “Buy” rating with an average price target of $243.50.
• Institutional investors own 85.19% of AppFolio, although insiders have sold $34.7 million of shares over the past 90 days, including sales by the CFO and a major shareholder under pre-arranged trading plans.

HMI Capital Management L.P. acquired a new stake in shares of AppFolio, Inc. (NASDAQ:APPF - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm acquired 75,000 shares of the software maker's stock, valued at approximately $12,026,000. AppFolio comprises about 1.7% of HMI Capital Management L.P.'s holdings, making the stock its 13th largest holding. HMI Capital Management L.P. owned approximately 0.21% of AppFolio at the end of the most recent reporting period.

Several other large investors also recently bought and sold shares of the business. Vanguard Group Inc. boosted its stake in shares of AppFolio by 4.1% in the 4th quarter. Vanguard Group Inc. now owns 2,560,460 shares of the software maker's stock worth $595,691,000 after buying an additional 101,466 shares during the last quarter. Principal Financial Group Inc. lifted its holdings in AppFolio by 20.9% in the first quarter. Principal Financial Group Inc. now owns 1,505,882 shares of the software maker's stock valued at $237,665,000 after acquiring an additional 259,933 shares during the period. State Street Corp lifted its holdings in AppFolio by 1.1% in the fourth quarter. State Street Corp now owns 685,656 shares of the software maker's stock valued at $159,518,000 after acquiring an additional 7,585 shares during the period. Price T Rowe Associates Inc. MD boosted its position in AppFolio by 17.2% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 669,317 shares of the software maker's stock worth $155,717,000 after purchasing an additional 98,230 shares during the last quarter. Finally, William Blair Investment Management LLC grew its stake in shares of AppFolio by 15.6% during the 4th quarter. William Blair Investment Management LLC now owns 638,241 shares of the software maker's stock valued at $148,487,000 after purchasing an additional 86,272 shares during the period. 85.19% of the stock is currently owned by institutional investors.

AppFolio Price Performance

AppFolio stock opened at $225.10 on Tuesday. The stock has a market cap of $7.97 billion, a P/E ratio of 51.39 and a beta of 0.78. AppFolio, Inc. has a 1 year low of $142.56 and a 1 year high of $288.73. The firm's 50 day moving average price is $178.87 and its 200-day moving average price is $170.90.

AppFolio (NASDAQ:APPF - Get Free Report) last released its quarterly earnings data on Thursday, July 23rd. The software maker reported $1.71 EPS for the quarter, beating the consensus estimate of $1.69 by $0.02. The business had revenue of $281.12 million during the quarter, compared to the consensus estimate of $277.35 million. AppFolio had a net margin of 15.13% and a return on equity of 32.42%. The business's revenue was up 19.3% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.38 EPS. As a group, equities analysts expect that AppFolio, Inc. will post 5.16 EPS for the current year.

Analyst Upgrades and Downgrades

Several research firms have weighed in on APPF. Wall Street Zen downgraded shares of AppFolio from a "buy" rating to a "hold" rating in a research report on Sunday, July 26th. Weiss Ratings raised AppFolio from a "hold (c-)" rating to a "hold (c)" rating in a report on Tuesday, August 11th. Zacks Research upgraded AppFolio from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, July 28th. DA Davidson set a $225.00 price target on AppFolio in a report on Friday, July 24th. Finally, Guggenheim assumed coverage on AppFolio in a research report on Wednesday, July 22nd. They issued a "buy" rating and a $232.00 price target for the company. Two analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Buy" and an average target price of $243.50.

Insiders Place Their Bets

In other AppFolio news, CFO Timothy Mathias Eaton sold 373 shares of the stock in a transaction on 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 owned 16,714 shares in the company, valued at $3,386,423.54. This trade represents a 2.18% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Maurice J. Duca sold 2,656 shares of the stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $221.85, for a total transaction of $589,233.60. Following the completion of the transaction, the insider directly owned 8,000 shares of the company's stock, valued at approximately $1,774,800. The trade was a 24.92% 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. In the last ninety days, insiders have sold 179,612 shares of company stock worth $34,697,503. 1.57% of the stock is owned by insiders.

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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