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

AppFolio, Inc. (NASDAQ:APPF - Get Free Report) shares gapped down before the market opened on Friday following a weaker than expected earnings announcement. 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 traded.

The software maker reported $0.58 EPS for the quarter, missing the consensus estimate of $0.92 by ($0.34). AppFolio had a return on equity of 26.21% and a net margin of 25.69%.

Wall Street Analysts Forecast Growth

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

Insiders Place Their Bets

In other news, Director Scanlan Agnes Bundy sold 500 shares of the firm's stock in a transaction that occurred on Monday, December 2nd. The shares were sold at an average price of $255.42, for a total transaction of $127,710.00. Following the transaction, the director now directly owns 5,416 shares of the company's stock, valued at approximately $1,383,354.72. This trade represents a 8.45 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Matthew S. Mazza sold 838 shares of the company's stock in a transaction on Thursday, January 23rd. The shares were sold at an average price of $255.30, for a total value of $213,941.40. Following the sale, the insider now owns 22,701 shares of the company's stock, valued at approximately $5,795,565.30. The trade was a 3.56 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 24,606 shares of company stock valued at $5,958,832 in the last 90 days. 5.24% of the stock is currently owned by insiders.

Institutional Investors Weigh In On AppFolio

Hedge funds have recently modified their holdings of the company. Blue Trust Inc. boosted its holdings in AppFolio by 85.7% in the third quarter. Blue Trust Inc. now owns 117 shares of the software maker's stock valued at $29,000 after acquiring an additional 54 shares during the last quarter. UMB Bank n.a. increased its position 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 worth $41,000 after buying an additional 110 shares during the period. Arcadia Investment Management Corp MI bought a new position in AppFolio during the fourth quarter worth $50,000. Northwestern Mutual Wealth Management Co. lifted its holdings in AppFolio by 688.9% in 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. Finally, True Wealth Design LLC bought a new stake in AppFolio during the third quarter valued at $79,000. Institutional investors and hedge funds own 85.19% of the company's stock.

AppFolio Stock Performance

The stock has a fifty day simple moving average of $253.57 and a two-hundred day simple moving average of $235.22. The stock has a market capitalization of $8.42 billion, a price-to-earnings ratio of 41.75 and a beta of 0.88.

AppFolio Company Profile

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.