Baker Avenue Asset Management LP Expands Investment in AppFolio, Inc.

Baker Avenue Asset Management LP has increased its investment in AppFolio, Inc. (NASDAQ:APPF) by 16.5% during the third quarter. According to the latest report filed with the Securities and Exchange Commission, the firm now holds 21,483 shares of the software company after purchasing an additional 3,038 shares during this period. This increased stake is valued at approximately $5,057,000, representing about 0.06% of AppFolio's total shares.

Other institutional investors have also adjusted their holdings in AppFolio recently. Brighton Jones LLC raised its stake by 0.9% in the second quarter, acquiring 5,805 shares worth $1,420,000 after adding 49 shares. Similarly, Blue Trust Inc. saw a significant growth of 85.7% in the third quarter, increasing its ownership to 117 shares valued at $29,000 following a purchase of an additional 54 shares. ProShare Advisors LLC also increased their holdings by 2.9%, possessing 3,630 shares worth $888,000 after acquiring 102 shares. In another notable move, CWM LLC's holdings surged by 238.6%, owning 149 shares valued at $36,000 after purchasing 105 extra shares. Additionally, GAMMA Investing LLC ramped up its stake by a substantial 589.5%, resulting in ownership of 131 shares worth $32,000 after adding 112 shares. Currently, hedge funds and institutional investors collectively own 62.34% of AppFolio's shares.

Current Stock Performance

As of the latest trading session on Friday, APPF stock dipped by 0.1%, trading down $0.19 to reach $228.20. The trading volume for the day stood at 195,392 shares, which is lower than the average volume of 318,012. AppFolio has a market capitalization of $8.29 billion, a price-to-earnings (PE) ratio of 63.57, and a beta value of 0.83. Over the past year, the stock has ranged from a low of $164.29 to a high of $274.56, with its 50-day moving average pegged at $221.31 and the 200-day moving average at $230.97.

On October 24, AppFolio reported its quarterly earnings, revealing earnings per share (EPS) of $1.29, exceeding the consensus estimate of $1.03 by $0.26. The company generated revenue of $206 million, surpassing analyst expectations of $199.11 million. AppFolio also demonstrated a strong return on equity of 30.64% and a net margin of 17.26%. The company’s revenue has shown a year-over-year growth of 24.5%, significantly up from an EPS of $0.26 in the same quarter last year. Analysts anticipate that AppFolio will achieve an EPS of 3.23 for the current financial year.

Analyst Ratings and Price Targets

Recently, multiple brokerages have provided insights concerning AppFolio's stock. Keefe, Bruyette & Woods downgraded the company from a "market perform" rating to an "underperform" rating, while also lowering their price target from $255.00 to $193.00 in a report released on October 15. Conversely, JPMorgan Chase & Co. raised their price target from $260.00 to $328.00, maintaining an "overweight" rating in a report issued on July 17. Piper Sandler Companies retained an "overweight" rating and set a price target of $300.00 for AppFolio shares on July 26. After evaluating the market, Piper Sandler subsequently reduced its price target from $300.00 to $265.00, reaffirming its "overweight" rating on October 25. Lastly, DA Davidson increased AppFolio's target price from $285.00 to $300.00 and has given the stock a "buy" rating. Among the analysts covering AppFolio, one has issued a sell rating, one a hold rating, and seven have designated it with a buy rating. As reported by MarketBeat, the stock currently holds a consensus rating of "Moderate Buy" with a price target set at $261.75.

Insider Trading Activity

In relation to insider trading activities at AppFolio, major shareholder Maurice J. Duca sold 2,968 shares on August 26 at an average price of $234.87, amounting to a total transaction value of $697,094.16. Post-sale, Duca retains 24,500 shares worth $5,754,315, reflecting a negligible change in his overall position. The transaction details were made available in a filing with the Securities & Exchange Commission. Additionally, insider Matthew S. Mazza sold 2,371 shares on August 15 at an average price of $221.22, which amounted to $524,512.62. After this transaction, Mazza holds 39,980 shares valued at $8,844,375.60. In the last three months, insiders have sold 17,652 shares valued at approximately $4,053,818. Currently, corporate insiders hold 5.24% of the company's stock.

About AppFolio

AppFolio, Inc. and its subsidiaries deliver cloud business management solutions aimed at the real estate sector within the United States. The company offers a cloud-based platform that helps users streamline and automate essential workflows, including tools for leasing, maintenance, and accounting, in conjunction with additional technologies and services from third parties.

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