AppFolio (NASDAQ:APPF) shares are ticking higher today after the real estate-focused technology platform announced a 9% headcount reduction. The move is expected to impact about 149 positions.
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AppFolio has undertaken the measure to lower costs amid a challenging business environment in which it has not been able to scale operations efficiently. The company has already implemented multiple cost reduction measures, including technology investments, lowering its real estate footprint, and taking a relook at its hiring requirements.
While AppFolio’s revenue has increased from $256 million in 2019 to ~$472 million in 2022, its bottom line has suffered. Compared to an EPS of $0.34 in 2019, the company incurred a net loss per share of $0.02 in 2022.
Yesterday, J.P. Morgan’s Alexei Gogolev initiated coverage of the stock with a Buy rating alongside a $200 price target. D.D. Davidson’s Peter Heckmann, though, has reiterated a Hold rating on AppFolio without assigning a price target for the stock.
Overall, the Street has a $198.33 consensus price target on APPF, alongside a Moderate Buy consensus rating. Shares of the company have surged nearly 53.4% over the past 52 weeks.
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