AppFolio (NASDAQ:APPF) Stock Falls 4.3% - Time to Sell?

Key Points

• AppFolio shares fell 4.3% to about $205 in low-volume trading, while remaining above the 200-day moving average of $184.25.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and a $250 target price; Guggenheim and DA Davidson recently raised their targets.
• The company exceeded quarterly expectations, reporting $1.82 in EPS and $295.69 million in revenue, with revenue up 18.5% year over year. However, insiders have sold roughly 131,117 shares worth $26 million over the past 90 days.

Shares of AppFolio, Inc. (NASDAQ:APPF - Get Free Report) traded down 4.3% on Tuesday. The company traded as low as $204.96 and last traded at $205.0240. Approximately 49,573 shares traded hands during trading, a decline of 87% from the average daily volume of 385,666 shares. The stock had previously closed at $214.32.

Analysts Set New Price Targets

Several research firms have recently issued reports on APPF. Guggenheim upped their price objective on shares of AppFolio from $232.00 to $239.00 and gave the company a "buy" rating in a report on Friday. Zacks Research cut shares of AppFolio from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, September 23rd. DA Davidson boosted their target price on shares of AppFolio from $240.00 to $250.00 and gave the stock a "buy" rating in a research report on Friday. KeyCorp restated an "overweight" rating on shares of AppFolio in a research note on Wednesday, October 14th. Finally, Wall Street Zen lowered shares of AppFolio from a "buy" rating to a "hold" rating in a research note on Sunday, July 26th. Nine investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $250.00.

AppFolio Price Performance

The business has a fifty day moving average price of $212.29 and a two-hundred day moving average price of $184.25. The firm has a market capitalization of $7.21 billion, a price-to-earnings ratio of 42.99 and a beta of 0.89.

AppFolio (NASDAQ:APPF - Get Free Report) last announced its quarterly earnings data on Thursday, October 22nd. The software maker reported $1.82 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.79 by $0.03. AppFolio had a return on equity of 33.56% and a net margin of 15.62%. The firm had revenue of $295.69 million during the quarter, compared to analysts' expectations of $294.46 million. During the same period last year, the business posted $1.31 earnings per share. The company's revenue for the quarter was up 18.5% compared to the same quarter last year. On average, research analysts predict that AppFolio, Inc. will post 5.19 earnings per share for the current year.

Insider Transactions at AppFolio

In other AppFolio news, major shareholder Maurice Duca sold 7,200 shares of the firm's stock in a transaction that occurred on Friday, July 31st. The shares were sold at an average price of $180.27, for a total transaction of $1,297,944.00. Following the completion of the transaction, the insider directly owned 30,624 shares of the company's stock, valued at approximately $5,520,588.48. This trade represents a 19.04% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 131,117 shares of company stock worth $25,999,585. Company insiders own 1.57% of the company's stock.

Institutional Trading of AppFolio

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Seven Mile Advisory increased its holdings in shares of AppFolio by 3.3% in the third quarter. Seven Mile Advisory now owns 1,666 shares of the software maker's stock valued at $334,000 after purchasing an additional 54 shares during the period. Versant Capital Management Inc raised its stake in shares of AppFolio by 18.6% during the third quarter. Versant Capital Management Inc now owns 536 shares of the software maker's stock worth $107,000 after purchasing an additional 84 shares during the last quarter. AMI Asset Management Corp raised its stake in shares of AppFolio by 2.4% during the third quarter. AMI Asset Management Corp now owns 4,057 shares of the software maker's stock worth $814,000 after purchasing an additional 94 shares during the last quarter. Parallel Advisors LLC lifted its holdings in shares of AppFolio by 25.1% during the first quarter. Parallel Advisors LLC now owns 703 shares of the software maker's stock worth $111,000 after purchasing an additional 141 shares during the period. Finally, Signaturefd LLC lifted its holdings in shares of AppFolio by 30.8% during the third quarter. Signaturefd LLC now owns 612 shares of the software maker's stock worth $123,000 after purchasing an additional 144 shares during the period. Institutional investors and hedge funds own 85.19% of the company's stock.

About AppFolio

AppFolio, Inc is a cloud-based software company that provides technology solutions for the real estate industry. Its platform is designed primarily for property management businesses, helping them manage accounting, leasing, maintenance, communications, payments, reporting and other operational activities through a centralized system.

The company's products serve a range of property managers, including those overseeing residential, commercial, community association, student housing and senior living properties.

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