Wellington Management Group LLP Makes New Investment in AppFolio, Inc. $APPF

Key Points

• Wellington Management initiated a new AppFolio position by purchasing 224,904 shares worth approximately $36.1 million, giving it a 0.63% stake. Institutional investors collectively own 85.19% of the company.
• AppFolio exceeded quarterly expectations, reporting $1.71 in EPS versus the $1.69 consensus and $281.1 million in revenue, up 19.3% year over year. Analysts project $5.17 in full-year EPS.
• AppFolio shares opened at $214.28, while analysts maintained an overall “Buy” consensus with an average price target of $243.50; insiders, however, sold $34.7 million worth of shares over the past 90 days.

Wellington Management Group LLP bought a new position in AppFolio, Inc. (NASDAQ:APPF - Free Report) in the 2nd quarter, according to the company in its most recent filing with the SEC. The institutional investor bought 224,904 shares of the software maker's stock, valued at approximately $36,063,000. Wellington Management Group LLP owned approximately 0.63% of AppFolio at the end of the most recent reporting period.

Several other institutional investors and hedge funds also recently made changes to their positions in the company. Principal Financial Group Inc. boosted its holdings in AppFolio by 20.9% during the first quarter. Principal Financial Group Inc. now owns 1,505,882 shares of the software maker's stock worth $237,665,000 after purchasing an additional 259,933 shares during the last quarter. Lead Edge Capital Management LLC purchased a new stake in AppFolio in the 1st quarter valued at about $33,183,000. Greenstone Partners & Co. LLC bought a new position in shares of AppFolio during the 4th quarter worth approximately $43,647,000. Millennium Management LLC boosted its stake in shares of AppFolio by 158.6% in the 4th quarter. Millennium Management LLC now owns 281,495 shares of the software maker's stock worth $65,490,000 after buying an additional 172,627 shares during the last quarter. Finally, Bank of New York Mellon Corp purchased a new position in shares of AppFolio in the 2nd quarter worth approximately $23,524,000. Hedge funds and other institutional investors own 85.19% of the company's stock.

Insider Buying and Selling

In related news, major shareholder Maurice Duca sold 7,200 shares of AppFolio stock in a transaction that occurred on Tuesday, July 7th. The shares were sold at an average price of $180.32, for a total value of $1,298,304.00. Following the completion of the transaction, the insider directly owned 42,400 shares in the company, valued at approximately $7,645,568. The trade was a 14.52% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 179,612 shares of company stock valued at $34,697,503. 1.57% of the stock is currently owned by company insiders.

AppFolio Stock Performance

Shares of AppFolio stock opened at $214.28 on Friday. The stock has a market capitalization of $7.59 billion, a P/E ratio of 48.92 and a beta of 0.85. AppFolio, Inc. has a 52-week low of $142.56 and a 52-week high of $288.73. The stock's 50-day simple moving average is $192.56 and its 200 day simple moving average is $173.82.

AppFolio (NASDAQ:APPF - Get Free Report) last issued its earnings results on Thursday, July 23rd. The software maker reported $1.71 earnings per share for the quarter, topping analysts' consensus estimates of $1.69 by $0.02. AppFolio had a net margin of 15.13% and a return on equity of 32.42%. The firm had revenue of $281.12 million during the quarter, compared to analyst estimates of $277.35 million. During the same quarter last year, the business earned $1.38 earnings per share. The company's quarterly revenue was up 19.3% on a year-over-year basis. Equities research analysts forecast that AppFolio, Inc. will post 5.17 EPS for the current fiscal year.

Wall Street Analyst Weigh In

A number of analysts recently commented on the company. Wall Street Zen downgraded 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 research report on Tuesday, August 11th. KeyCorp restated an "overweight" rating on shares of AppFolio in a research note on Monday, July 6th. Guggenheim assumed coverage on AppFolio in a research report on Wednesday, July 22nd. They set a "buy" rating and a $232.00 target price for the company. Finally, Zacks Research raised AppFolio from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, July 28th. Two research analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Buy" and a consensus price target of $243.50.

AppFolio 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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