Frontdoor (NASDAQ:FTDR) Hits New 12-Month High - Still a Buy?

Key Points

• Frontdoor Inc. has reached a new 12-month high, trading at $65.18, with analysts issuing various price target adjustments from $44.00 to $71.00.
• The company's quarterly earnings report revealed an EPS of $1.63, surpassing estimates, and a revenue of $617 million, reflecting a 13.8% year-over-year increase.
• Insider trading activity saw SVP Jeffrey Fiarman sell over 129,000 shares, significantly reducing their ownership stake by nearly 79%.

Frontdoor Inc. (NASDAQ:FTDR - Get Free Report) hit a new 52-week high during mid-day trading on Monday . The company traded as high as $65.15 and last traded at $65.18, with a volume of 543985 shares changing hands. The stock had previously closed at $63.05.

Analysts Set New Price Targets

A number of analysts recently issued reports on the company. The Goldman Sachs Group upped their target price on Frontdoor from $44.00 to $50.00 and gave the company a "sell" rating in a research report on Wednesday, August 6th. Oppenheimer increased their price objective on Frontdoor from $56.00 to $63.00 and gave the stock an "outperform" rating in a research report on Wednesday, August 6th. Truist Financial increased their price objective on Frontdoor from $67.00 to $71.00 and gave the stock a "buy" rating in a research report on Wednesday, August 6th. JPMorgan Chase & Co. increased their price objective on Frontdoor from $50.00 to $55.00 and gave the stock a "neutral" rating in a research report on Tuesday, June 3rd. Finally, Zacks Research raised Frontdoor from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, August 27th. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $59.75.

Frontdoor Trading Up 3.5%

The firm has a market capitalization of $4.75 billion, a PE ratio of 19.25 and a beta of 1.34. The business has a 50 day moving average price of $58.94 and a 200-day moving average price of $51.47. The company has a current ratio of 1.49, a quick ratio of 1.49 and a debt-to-equity ratio of 4.56.

Frontdoor (NASDAQ:FTDR - Get Free Report) last released its quarterly earnings data on Tuesday, August 5th. The company reported $1.63 earnings per share for the quarter, beating the consensus estimate of $1.44 by $0.19. Frontdoor had a return on equity of 125.21% and a net margin of 13.07%.The firm had revenue of $617.00 million during the quarter, compared to the consensus estimate of $602.62 million. During the same period last year, the business posted $1.27 EPS. Frontdoor's quarterly revenue was up 13.8% on a year-over-year basis. Frontdoor has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. Analysts expect that Frontdoor Inc. will post 3.07 earnings per share for the current year.

Insiders Place Their Bets

In other Frontdoor news, SVP Jeffrey Fiarman sold 129,673 shares of the firm's stock in a transaction on Thursday, August 7th. The stock was sold at an average price of $56.15, for a total transaction of $7,281,138.95. Following the completion of the transaction, the senior vice president owned 34,646 shares of the company's stock, valued at approximately $1,945,372.90. This trade represents a 78.92% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. 1.48% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in FTDR. Quantinno Capital Management LP boosted its holdings in Frontdoor by 0.8% during the fourth quarter. Quantinno Capital Management LP now owns 24,212 shares of the company's stock valued at $1,324,000 after purchasing an additional 183 shares in the last quarter. KLP Kapitalforvaltning AS lifted its holdings in Frontdoor by 0.6% during the 2nd quarter. KLP Kapitalforvaltning AS now owns 33,700 shares of the company's stock worth $1,986,000 after buying an additional 200 shares in the last quarter. Snowden Capital Advisors LLC lifted its holdings in Frontdoor by 4.1% during the 2nd quarter. Snowden Capital Advisors LLC now owns 6,407 shares of the company's stock worth $378,000 after buying an additional 250 shares in the last quarter. Blue Trust Inc. lifted its holdings in Frontdoor by 9.1% during the 2nd quarter. Blue Trust Inc. now owns 3,032 shares of the company's stock worth $179,000 after buying an additional 252 shares in the last quarter. Finally, Xponance Inc. raised its position in shares of Frontdoor by 5.0% during the 1st quarter. Xponance Inc. now owns 5,971 shares of the company's stock valued at $229,000 after acquiring an additional 285 shares during the last quarter.

About Frontdoor

Frontdoor, Inc provides home warranties in the United States in the United States. Its customizable home warranties help customers protect and maintain their homes from costly and unplanned breakdowns of essential home systems and appliances. The company's home warranty customers subscribe to an annual service plan agreement that covers the repair or replacement of principal components of approximately 20 home systems and appliances, including electrical, plumbing, water heaters, refrigerators, dishwashers, and ranges/ovens/cooktops, as well as electronics, pools, and spas and pumps; and heating, ventilation, and air conditioning systems.

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