Maurice Duca Sells 7,200 Shares of AppFolio (NASDAQ:APPF) Stock

Key Points

• Major shareholder Maurice Duca sold 7,200 AppFolio shares for approximately $1.31 million under a pre-arranged Rule 10b5-1 trading plan, reducing his direct ownership by 17.39% to 34,198 shares.
• AppFolio shares fell 5.9% to $176.02, while the company’s latest quarterly results modestly exceeded expectations: earnings were $1.71 per share and revenue reached $281.12 million, up 19.3% year over year.
• Institutional investors own 85.19% of AppFolio, with several major firms increasing their stakes. Analysts maintain a consensus “Buy” rating and a $243.50 price target, despite mixed recent rating changes.

AppFolio, Inc. (NASDAQ:APPF - Get Free Report) major shareholder Maurice Duca sold 7,200 shares of the stock in a transaction that occurred on Tuesday, July 28th. The stock was sold at an average price of $181.72, for a total value of $1,308,384.00. Following the completion of the sale, the insider directly owned 34,198 shares of the company's stock, valued at approximately $6,214,460.56. This trade represents a 17.39% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Large shareholders that own 10% or more of a company's shares are required to disclose their sales and purchases with the SEC.

AppFolio Trading Down 5.9%

Shares of NASDAQ:APPF traded down $10.97 during mid-day trading on Thursday, hitting $176.02. 294,601 shares of the company traded hands, compared to its average volume of 394,762. The stock has a 50-day moving average price of $166.09 and a two-hundred day moving average price of $172.06. AppFolio, Inc. has a 12-month low of $142.56 and a 12-month high of $326.04. The stock has a market cap of $6.22 billion, a P/E ratio of 40.19 and a beta of 0.79.

AppFolio (NASDAQ:APPF - Get Free Report) last issued its quarterly earnings data on Thursday, July 23rd. The software maker reported $1.71 earnings per share for the quarter, beating the consensus estimate of $1.69 by $0.02. The business had revenue of $281.12 million for 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%.The business's revenue was up 19.3% on a year-over-year basis. During the same period last year, the business earned $1.38 EPS. As a group, analysts expect that AppFolio, Inc. will post 5.16 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. increased its stake in shares of AppFolio by 4.1% during the 4th quarter. Vanguard Group Inc. now owns 2,560,460 shares of the software maker's stock worth $595,691,000 after purchasing an additional 101,466 shares during the last quarter. Principal Financial Group Inc. grew 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 valued at $237,665,000 after purchasing an additional 259,933 shares during the period. State Street Corp grew its holdings in AppFolio by 1.1% during the fourth quarter. State Street Corp now owns 685,656 shares of the software maker's stock valued at $159,518,000 after purchasing an additional 7,585 shares during the period. Price T Rowe Associates Inc. MD increased 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 buying an additional 98,230 shares during the last quarter. Finally, William Blair Investment Management LLC increased its position in AppFolio by 15.6% in the fourth quarter. William Blair Investment Management LLC now owns 638,241 shares of the software maker's stock worth $148,487,000 after buying an additional 86,272 shares during the last quarter. 85.19% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

APPF has been the topic of several recent analyst reports. Guggenheim assumed coverage on shares of AppFolio in a research report on Wednesday, July 22nd. They set a "buy" rating and a $232.00 target price on the stock. Wall Street Zen lowered AppFolio from a "buy" rating to a "hold" rating in a report on Sunday. Zacks Research upgraded AppFolio from a "hold" rating to a "strong-buy" rating in a report on Tuesday. DA Davidson set a $225.00 price objective on AppFolio in a research report on Friday, July 24th. Finally, KeyCorp restated an "overweight" rating on shares of AppFolio in a research note on Monday, July 6th. Two investment 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 stock. According to MarketBeat, the stock has a consensus rating of "Buy" and a consensus price target of $243.50.

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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