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

AppFolio, Inc. (NASDAQ:APPF)’s share price gapped down prior to trading on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $253.58, but opened at $241.30. AppFolio shares last traded at $236.91, with a volume of 105,559 shares trading hands.

The software maker reported $0.58 earnings per share for the quarter, missing the consensus estimate of $0.92 by ($0.34). AppFolio had a net margin of 17.26% and a return on equity of 30.64%.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on APPF shares. Keefe, Bruyette & Woods lowered AppFolio from a “market perform” rating to an “underperform” rating and decreased their price objective for the stock from $255.00 to $193.00 in a report on Tuesday, October 15th. William Blair reissued an “outperform” rating on shares of AppFolio in a report on Friday. Stephens restated an “overweight” rating and set a $295.00 price objective on shares of AppFolio in a research note on Friday. Piper Sandler reiterated a “neutral” rating and issued a $265.00 target price on shares of AppFolio in a research report on Friday. Finally, KeyCorp downgraded shares of AppFolio from an “overweight” rating to a “sector weight” rating and set a $253.00 price target on the stock. in a research report on Friday, January 10th. One equities research analyst has rated the stock with a sell rating, three have given a hold rating and five have given a buy rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $276.29.

Insider Activity

In other news, major shareholder Maurice J. Duca sold 2,510 shares of the company’s stock in a transaction on Monday, November 18th. The stock was sold at an average price of $229.21, for a total transaction of $575,317.10. Following the completion of the sale, the insider now directly owns 2,459 shares of the company’s stock, valued at $563,627.39. This represents a 50.51 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Scanlan Agnes Bundy sold 500 shares of AppFolio stock in a transaction dated Monday, December 2nd. The stock was sold at an average price of $255.42, for a total value of $127,710.00. Following the completion of the transaction, the director now directly owns 5,416 shares in the company, valued at $1,383,354.72. This represents a 8.45 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 24,606 shares of company stock worth $5,958,832. Corporate insiders own 5.24% of the company’s stock.

Institutional Investors Weigh In On AppFolio

Several hedge funds have recently made changes to their positions in the company. Blue Trust Inc. grew its position in AppFolio by 85.7% during the 3rd quarter. Blue Trust Inc. now owns 117 shares of the software maker’s stock worth $29,000 after purchasing an additional 54 shares in the last quarter. UMB Bank n.a. grew its holdings in shares of AppFolio by 193.0% during the fourth quarter. UMB Bank n.a. now owns 167 shares of the software maker’s stock valued at $41,000 after buying an additional 110 shares in the last quarter. Northwestern Mutual Wealth Management Co. raised its position in AppFolio by 688.9% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 213 shares of the software maker’s stock valued at $52,000 after buying an additional 186 shares during the period. Quarry LP lifted its stake in AppFolio by 147.9% in the 2nd quarter. Quarry LP now owns 238 shares of the software maker’s stock worth $58,000 after acquiring an additional 142 shares in the last quarter. Finally, True Wealth Design LLC acquired a new stake in AppFolio during the 3rd quarter worth about $79,000. Hedge funds and other institutional investors own 85.19% of the company’s stock.

AppFolio Stock Performance

The company has a market cap of $8.50 billion, a PE ratio of 65.16 and a beta of 0.87. The company has a 50 day simple moving average of $253.82 and a two-hundred day simple moving average of $235.80.

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.