AppFolio (NASDAQ:APPF) Stock Price Down 4.8% - Here's Why

Key Points

• AppFolio shares fell 4.8% to $212.87 in low-volume trading, with volume down 85% from its average.
• The company reported quarterly results slightly above expectations, including EPS of $1.71 versus $1.69 expected and revenue of $281.12 million, up 19.3% year over year.
• Analyst sentiment remains broadly positive, with an average “Buy” rating and a $243.50 target price, although insiders sold 179,612 shares worth approximately $34.7 million in the last quarter.

AppFolio, Inc. (NASDAQ:APPF - Get Free Report)'s stock price dropped 4.8% on Friday . The company traded as low as $206.95 and last traded at $212.87. 58,108 shares traded hands during trading, a decline of 85% from the average daily volume of 390,568 shares. The stock had previously closed at $223.57.

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on APPF shares. Zacks Research raised AppFolio from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, July 28th. Wall Street Zen downgraded shares of AppFolio from a "buy" rating to a "hold" rating in a research report on Sunday, July 26th. DA Davidson set a $225.00 price objective on shares of AppFolio in a research note on Friday, July 24th. Weiss Ratings upgraded shares of AppFolio from a "hold (c-)" rating to a "hold (c)" rating in a research report on Tuesday, August 11th. Finally, Guggenheim began 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. Two analysts have rated the stock with a Strong Buy rating, nine have assigned 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 an average target price of $243.50.

AppFolio Trading Down 4.0%

The firm has a market capitalization of $7.61 billion, a P/E ratio of 49.04 and a beta of 0.85. The business has a 50-day moving average of $191.39 and a 200 day moving average of $173.53.

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

Insider Activity

In related news, major shareholder Maurice Duca sold 7,200 shares of the stock in a transaction on Tuesday, July 7th. The stock was sold at an average price of $180.32, for a total value of $1,298,304.00. Following the transaction, the insider directly owned 42,400 shares in the company, valued at $7,645,568. This trade represents a 14.52% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 179,612 shares of company stock valued at $34,697,503. 1.57% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Riverbridge Partners LLC purchased a new position in shares of AppFolio in the 1st quarter worth approximately $13,906,000. Quantum Capital Management LLC NJ bought a new position in shares of AppFolio in the fourth quarter valued at approximately $7,995,000. SG Americas Securities LLC increased its position in shares of AppFolio by 666.2% during the first quarter. SG Americas Securities LLC now owns 25,185 shares of the software maker's stock valued at $3,975,000 after acquiring an additional 21,898 shares during the last quarter. Louisiana State Employees Retirement System purchased a new stake in shares of AppFolio during the first quarter valued at approximately $1,121,000. Finally, Royal Bank of Canada lifted its holdings in AppFolio by 19.6% during the first quarter. Royal Bank of Canada now owns 52,466 shares of the software maker's stock worth $8,280,000 after acquiring an additional 8,582 shares during the period. Institutional investors and hedge funds own 85.19% of the company's stock.

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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