AppFolio (NASDAQ:APPF) Shares Gap Down on Disappointing Earnings

AppFolio, Inc. (NASDAQ:APPF)’s stock price gapped down prior to trading on Friday following a dissappointing earnings announcement. The stock had previously closed at $235.71, but opened at $219.00. AppFolio shares last traded at $238.3060, with a volume of 133,703 shares trading hands.

The software maker reported $1.31 EPS for the quarter, missing analysts’ consensus estimates of $1.45 by ($0.14). The company had revenue of $249.35 million for the quarter, compared to analyst estimates of $245.39 million. AppFolio had a net margin of 22.48% and a return on equity of 26.24%. The firm’s quarterly revenue was up 21.2% on a year-over-year basis. During the same period in the prior year, the company posted $1.29 EPS. AppFolio has set its FY 2025 guidance at EPS.

Analyst Ratings Changes

A number of research analysts have recently commented on APPF shares. KeyCorp cut their price objective on shares of AppFolio from $285.00 to $270.00 and set an “overweight” rating for the company in a research report on Friday. Piper Sandler raised shares of AppFolio from a “neutral” rating to an “overweight” rating and upped their price objective for the company from $240.00 to $350.00 in a research report on Friday, August 1st. DA Davidson cut their price objective on shares of AppFolio from $375.00 to $325.00 and set a “buy” rating for the company in a research report on Friday. Keefe, Bruyette & Woods raised shares of AppFolio from a “market perform” rating to an “outperform” rating and set a $311.00 price objective for the company in a research report on Friday, October 24th. Finally, Weiss Ratings reaffirmed a “buy (b-)” rating on shares of AppFolio in a research report on Wednesday, October 8th. Seven equities research analysts have rated the stock with a Buy rating, According to MarketBeat, AppFolio currently has an average rating of “Buy” and a consensus target price of $310.20.

Insider Activity

In related news, CEO William Shane Trigg sold 4,000 shares of the stock in a transaction dated Wednesday, September 10th. The shares were sold at an average price of $276.95, for a total value of $1,107,800.00. Following the completion of the transaction, the chief executive officer owned 59,556 shares of the company’s stock, valued at $16,494,034.20. This represents a 6.29% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, major shareholder Maurice J. Duca sold 3,100 shares of the company’s stock in a transaction dated Monday, August 4th. The stock was sold at an average price of $321.38, for a total transaction of $996,278.00. Following the sale, the insider directly owned 42,400 shares in the company, valued at $13,626,512. This represents a 6.81% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 50,203 shares of company stock valued at $14,382,536 in the last three months. Company insiders own 4.68% of the company’s stock.

Institutional Trading of AppFolio

Large investors have recently added to or reduced their stakes in the company. Root Financial Partners LLC bought a new stake in AppFolio during the third quarter worth about $31,000. TD Private Client Wealth LLC grew its stake in AppFolio by 2,116.7% during the third quarter. TD Private Client Wealth LLC now owns 133 shares of the software maker’s stock worth $37,000 after buying an additional 127 shares during the last quarter. First Horizon Corp bought a new stake in AppFolio during the third quarter worth about $39,000. Farther Finance Advisors LLC grew its stake in AppFolio by 2,200.0% during the third quarter. Farther Finance Advisors LLC now owns 184 shares of the software maker’s stock worth $51,000 after buying an additional 176 shares during the last quarter. Finally, Huntington National Bank grew its stake in AppFolio by 58.7% during the second quarter. Huntington National Bank now owns 200 shares of the software maker’s stock worth $46,000 after buying an additional 74 shares during the last quarter. 85.19% of the stock is owned by institutional investors.

AppFolio Price Performance

The stock has a market capitalization of $9.12 billion, a P/E ratio of 45.68 and a beta of 0.83. The company’s 50 day simple moving average is $260.29 and its two-hundred day simple moving average is $244.73.

About AppFolio

AppFolio, Inc, together with its subsidiaries, provides cloud business management solutions for the real estate industry in the United States. The company provides a cloud-based platform that enables users to automate and optimize common workflows; tools that assist with leasing, maintenance, and accounting; and other technology and services offered by third parties.