AppFolio (NASDAQ:APPF) Shares Cross Below 50 Day Moving Average - Should You Sell?

Key Points

• AppFolio shares fell below their 50-day moving average, trading as low as $198.67 and last changing hands at $203.18, compared with a 50-day average of $210.07.
• Despite recent rating downgrades to “hold,” analysts maintain a “Moderate Buy” consensus, with an average price target of $249.75 versus the reported share price.
• AppFolio exceeded quarterly earnings and revenue expectations, with EPS of $1.71 and revenue of $281.12 million; however, insiders sold 154,517 shares worth about $30.25 million over the past three months.

AppFolio, Inc. (NASDAQ:APPF - Get Free Report) shares crossed below its fifty day moving average during trading on Wednesday. The stock has a fifty day moving average of $210.07 and traded as low as $198.67. AppFolio shares last traded at $203.18, with a volume of 402,109 shares.

Analyst Ratings Changes

A number of equities research analysts have commented on the stock. KeyCorp restated an "overweight" rating on shares of AppFolio in a research note on Wednesday. Weiss Ratings upgraded AppFolio from a "hold (c-)" rating to a "hold (c)" rating in a research report on Tuesday, August 11th. DA Davidson set a $240.00 price objective on AppFolio in a report on Monday, September 28th. Zacks Research downgraded shares of AppFolio from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, September 23rd. Finally, Wall Street Zen lowered AppFolio from a "buy" rating to a "hold" rating in a research note on Sunday, July 26th. One analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $249.75.

AppFolio Trading Up 2.1%

The company has a market capitalization of $7.20 billion, a price-to-earnings ratio of 46.39 and a beta of 0.89. The company has a 50-day moving average of $210.07 and a 200-day moving average of $180.23.

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 analysts' consensus estimates of $1.69 by $0.02. The company had revenue of $281.12 million during the quarter, compared to analysts' expectations of $277.35 million. AppFolio had a net margin of 15.13% and a return on equity of 32.42%. AppFolio's revenue for the quarter was up 19.3% on a year-over-year basis. During the same period last year, the business earned $1.38 EPS. On average, research analysts expect that AppFolio, Inc. will post 5.18 EPS for the current year.

Insider Activity

In other news, major shareholder Maurice Duca sold 7,200 shares of AppFolio stock in a transaction on Tuesday, July 28th. The shares were sold at an average price of $181.72, for a total transaction of $1,308,384.00. Following the completion of the sale, the insider directly owned 34,198 shares in the company, valued at approximately $6,214,460.56. The trade was a 17.39% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 154,517 shares of company stock valued at $30,246,084 over the last three months. Company insiders own 1.57% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Optiver Holding B.V. grew its holdings in shares of AppFolio by 827.8% during the first quarter. Optiver Holding B.V. now owns 167 shares of the software maker's stock worth $26,000 after purchasing an additional 149 shares during the last quarter. Integrated Wealth Concepts LLC acquired a new position in shares of AppFolio during the second quarter worth about $36,000. Versant Capital Management Inc raised its stake in shares of AppFolio by 169.0% during the 2nd quarter. Versant Capital Management Inc now owns 452 shares of the software maker's stock worth $72,000 after buying an additional 284 shares in the last quarter. Parallel Advisors LLC boosted its position in shares of AppFolio by 25.1% during the 1st quarter. Parallel Advisors LLC now owns 703 shares of the software maker's stock worth $111,000 after purchasing an additional 141 shares in the last quarter. Finally, GAMMA Investing LLC lifted its position in shares of AppFolio by 74.5% during the 2nd quarter. GAMMA Investing LLC now owns 834 shares of the software maker's stock valued at $134,000 after acquiring an additional 356 shares during the period. Hedge funds and other institutional investors own 85.19% of the company's stock.

About AppFolio

AppFolio, Inc NASDAQ: APPF develops cloud-based software and technology solutions for the real estate industry. Its platform is designed primarily for property managers and real estate businesses, helping them manage operations, accounting, leasing, maintenance, communication, payments and other property-related workflows from a centralized system.

The company's offerings include AppFolio Property Manager and related services for residential, commercial and community association properties.

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