Fred Alger Management LLC Reduces Stake in AppFolio, Inc.

Fred Alger Management LLC has reduced its stake in AppFolio, Inc. (NASDAQ:APPF) by 48.5% during the third quarter, as revealed in their most recent Form 13F filing with the Securities and Exchange Commission (SEC). After selling 174,057 shares during this period, the fund now holds a total of 184,826 shares of the software company. This position represents approximately 0.51% of AppFolio, with a total valuation of $43,508,000 based on their latest SEC filing.

A number of other institutional investors have also adjusted their positions in AppFolio. For example, Brighton Jones LLC increased its holdings by 0.9% in the second quarter, now owning 5,805 shares worth $1,420,000 after acquiring an additional 49 shares. Likewise, Blue Trust Inc. boosted its position by 85.7% in the third quarter, owning 117 shares valued at $29,000 after buying 54 more. Northwest & Ethical Investments L.P. grew its position by 16.0%, now holding 725 shares valued at $171,000 after purchasing 100 additional shares. ProShare Advisors LLC increased its stake by 2.9% in the second quarter, owning 3,630 shares estimated at $888,000 after an additional buy of 102 shares. Lastly, CWM LLC raised its holdings by 238.6% in the second quarter, currently owning 149 shares worth $36,000 following a purchase of 105 shares. Overall, institutional investors control 62.34% of the stock.

Analyst Insights on AppFolio

Recent reports from various equity analysts indicate a mixed outlook for AppFolio. StockNews.com downgraded the company from a "buy" to a "hold" rating on August 22nd. Similarly, Keefe, Bruyette & Woods changed their recommendation from "market perform" to "underperform," lowering their target price from $255.00 to $193.00 in a report dated October 15th. KeyCorp also reduced its target price from $300.00 to $252.00 and maintained an "overweight" rating as of October 25th. Piper Sandler followed suit by adjusting their price objective from $300.00 to $265.00 while continuing to rate the stock as "overweight." In summary, one analyst has issued a sell rating, one a hold rating, and seven analysts have given buy ratings. The stock currently has an average rating of "Moderate Buy" and an average price target of $261.75 according to MarketBeat.com.

Insider Transactions at AppFolio

In insider news, Maurice J. Duca, a major shareholder, sold 2,700 shares on September 20th at an average price of $234.05, totaling $631,935. After this sale, the insider holds 14,716 shares with a value of about $3,444,279.80, marking a 15.50% reduction in their holdings. The transaction details were disclosed in a filing with the SEC. Additionally, Matthew S. Mazza, another insider, sold 926 shares on November 11th for an average price of $229.04 amounting to $212,091.04, which led to a 2.67% decrease in their holdings, leaving them with 33,819 shares valued at around $7,745,903.76. In the past 90 days, insiders have sold 24,461 shares of the company, totaling $5,766,272. Corporate insiders currently own 5.24% of the company’s shares.

Stock Performance of AppFolio

The shares of AppFolio opened at $254.82 recently. The stock's 50-day and 200-day simple moving averages stand at $224.84 and $231.25, respectively. With a market cap of $9.26 billion, AppFolio has a price-to-earnings (P/E) ratio of 70.98 and a beta of 0.83. The stock's 52-week lowest point was $164.29, while the highest was $274.56. On October 24th, the company reported earnings of $1.29 per share (EPS) for the quarter, outperforming the consensus estimate of $1.03 by $0.26. Their revenue for the quarter reached $206.00 million, beating expectations of $199.11 million. AppFolio's revenue grew by 24.5% year over year, and their return on equity stood at 30.64%. Analysts predict that the company will achieve an EPS of 3.23 for the current financial year.

Company Overview

AppFolio, Inc. is a provider of cloud-based business management solutions catering specifically to the real estate industry in the United States. They offer a platform that allows users to streamline and enhance routine workflows alongside tools that assist with leasing, maintenance, and accounting services, among other offerings from third-party vendors.

Conclusion

The adjustments made by Fred Alger Management LLC and other institutional investors highlight the ongoing shifts in investment strategies regarding AppFolio, Inc. As analysts convey varied ratings and expectations, the future performance of AppFolio remains a point of interest for investors in the tech and real estate sectors.

AppFolio, Investors, Stocks