William Blair analyst Stephen Sheldon has maintained their bullish stance on APPF stock, giving a Buy rating yesterday.
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Stephen Sheldon has given his Buy rating due to a combination of factors including AppFolio’s strong underlying performance and growth prospects. Despite the impact of a significant performance-based compensation accrual that affected profit margins, the company demonstrated robust unit and revenue growth. The acceleration in unit additions and revenue growth indicates a positive trajectory for the company, with unit additions up 7% year-over-year and revenue growth increasing to 21% sequentially.
Management’s updated guidance for 2025 reflects confidence in continued growth, with revenue projections raised and a slight adjustment in profit margins due to the accrual. The accrual, tied to the company’s bonus plan, was a key factor in the profit guidance adjustment, but its impact is seen as modest in the broader context of the company’s performance. Overall, the strong growth indicators and the management’s optimistic outlook for the future underpin Sheldon’s Buy rating for AppFolio.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $266.00 price target.
Based on the recent corporate insider activity of 67 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of APPF in relation to earlier this year.