AppFolio (NASDAQ:APPF) Upgraded by Zacks Research to “Strong-Buy” Rating

Zacks Research upgraded shares of AppFolio (NASDAQ:APPF) from a hold rating to a strong-buy rating in a research note issued to investors on Tuesday,Zacks.com reports.

A number of other research firms have also recently weighed in on APPF. Guggenheim started coverage on shares of AppFolio in a report on Wednesday, July 22nd. They issued a “buy” rating and a $232.00 price objective on the stock. Wall Street Zen cut shares of AppFolio from a “buy” rating to a “hold” rating in a research report on Sunday. Benchmark upped their target price on shares of AppFolio from $222.00 to $226.00 and gave the stock a “buy” rating in a research report on Friday, April 24th. KeyCorp restated an “overweight” rating on shares of AppFolio in a research note on Monday, July 6th. Finally, DA Davidson set a $225.00 price target on AppFolio in a report on Friday, July 24th. Two equities research analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Buy” and an average target price of $243.50.

AppFolio Trading Up 4.9%

Shares of NASDAQ APPF opened at $186.99 on Tuesday. AppFolio has a 12-month low of $142.56 and a 12-month high of $326.04. The company has a market cap of $6.61 billion, a price-to-earnings ratio of 42.69 and a beta of 0.79. The stock’s 50 day simple moving average is $165.82 and its 200 day simple moving average is $172.41.

AppFolio (NASDAQ:APPF) last issued its quarterly earnings data on Thursday, July 23rd. The software maker reported $1.71 EPS for the quarter, topping analysts’ consensus estimates of $1.69 by $0.02. The firm had revenue of $281.12 million during the quarter, compared to the consensus estimate of $277.35 million. AppFolio had a return on equity of 32.42% and a net margin of 15.13%.The firm’s revenue was up 19.3% on a year-over-year basis. During the same period in the prior year, the business earned $1.38 EPS. As a group, equities analysts forecast that AppFolio will post 5.16 earnings per share for the current fiscal year.

Insider Transactions at AppFolio

In related news, CFO Timothy Mathias Eaton sold 2,585 shares of the stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $160.07, for a total value of $413,780.95. Following the completion of the transaction, the chief financial officer owned 18,036 shares in the company, valued at $2,887,022.52. This represents a 12.54% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Maurice J. Duca sold 200 shares of the firm’s stock in a transaction dated Monday, July 20th. The shares were sold at an average price of $180.00, for a total transaction of $36,000.00. Following the transaction, the insider directly owned 81,480 shares in the company, valued at approximately $14,666,400. The trade was a 0.24% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 43,357 shares of company stock worth $7,614,340. Company insiders own 1.57% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. raised its holdings in AppFolio by 4.1% during the fourth quarter. Vanguard Group Inc. now owns 2,560,460 shares of the software maker’s stock worth $595,691,000 after purchasing an additional 101,466 shares in the last quarter. Principal Financial Group Inc. boosted its stake in AppFolio by 20.9% during the 1st quarter. Principal Financial Group Inc. now owns 1,505,882 shares of the software maker’s stock valued at $237,665,000 after purchasing an additional 259,933 shares in the last quarter. State Street Corp boosted its stake in AppFolio by 1.1% during the 4th quarter. State Street Corp now owns 685,656 shares of the software maker’s stock valued at $159,518,000 after purchasing an additional 7,585 shares in the last quarter. Price T Rowe Associates Inc. MD increased its position in shares of AppFolio by 17.2% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 669,317 shares of the software maker’s stock valued at $155,717,000 after purchasing an additional 98,230 shares during the period. Finally, William Blair Investment Management LLC increased its position in shares of AppFolio by 15.6% during the 4th quarter. William Blair Investment Management LLC now owns 638,241 shares of the software maker’s stock valued at $148,487,000 after purchasing an additional 86,272 shares during the period. 85.19% of the stock is currently owned by institutional investors.

AppFolio News Summary

Here are the key news stories impacting AppFolio this week:

• Positive Sentiment: Zacks upgraded AppFolio to Rank #1 (Strong Buy), citing growing optimism around the company’s earnings prospects. The upgrade may be supporting renewed buying interest. AppFolio upgraded to Strong Buy
• Positive Sentiment: Zacks also characterized APPF as a solid growth stock, pointing to growth attributes that could support attractive long-term returns. AppFolio’s latest quarterly results showed revenue growth of 19.3% year over year, with earnings and revenue modestly exceeding consensus estimates. AppFolio growth stock analysis
• Positive Sentiment: Wall Street’s average price target implies approximately 25.5% potential upside from recent levels. While price targets are not guarantees, analysts’ positive earnings-estimate revisions provide an additional bullish signal. AppFolio analyst price target
• Positive Sentiment: APPF recently moved above its 20-day moving average, suggesting improving short-term momentum and helping reinforce the bullish trading narrative. AppFolio technical breakout
• Neutral Sentiment: Analyst coverage remains broadly favorable, with a consensus “Buy” rating and several targets above the current market level. However, one research firm recently downgraded the stock to “Hold,” while Piper Sandler lowered its target, highlighting valuation and execution risks.
• Negative Sentiment: Major shareholder Maurice Duca disclosed sales totaling 12,500 shares for roughly $2.27 million across July 17 and July 20. The transactions were made under a pre-arranged Rule 10b5-1 plan, which reduces their significance as a discretionary bearish signal, but insider selling can still weigh modestly on sentiment. AppFolio major shareholder share sales

About AppFolio

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.