The Goldman Sachs Group Forecasts Strong Price Appreciation for Frontdoor (NASDAQ:FTDR) Stock

Key Points

• Goldman Sachs raised its price target for Frontdoor (NASDAQ: FTDR) to $50.00, while maintaining a "sell" rating, indicating a potential downside from the stock's previous close.
• Other analysts have increased their price objectives, with Truist Financial setting a target of $71.00 and JPMorgan Chase raising its target to $55.00.
• Frontdoor reported a quarterly earnings surprise with an EPS of $1.63, exceeding expectations and demonstrating a 13.8% year-over-year revenue growth.

Frontdoor (NASDAQ:FTDR - Free Report) had its target price raised by The Goldman Sachs Group from $44.00 to $50.00 in a research report released on Wednesday,Benzinga reports. The firm currently has a sell rating on the stock.

A number of other research firms have also weighed in on FTDR. JPMorgan Chase & Co. boosted their target price on shares of Frontdoor from $50.00 to $55.00 and gave the stock a "neutral" rating in a research report on Tuesday, June 3rd. Oppenheimer boosted their target price on shares of Frontdoor from $56.00 to $63.00 and gave the stock an "outperform" rating in a research report on Wednesday. Finally, Truist Financial boosted their target price on shares of Frontdoor from $67.00 to $71.00 and gave the stock a "buy" rating in a research report on Wednesday.

Frontdoor Stock Down 2.6%

NASDAQ:FTDR traded down $1.44 during trading hours on Wednesday, reaching $54.88. The company's stock had a trading volume of 525,542 shares, compared to its average volume of 657,203. The company has a market cap of $4.00 billion, a price-to-earnings ratio of 14.00 and a beta of 1.32. Frontdoor has a one year low of $35.61 and a one year high of $64.91. The business's 50-day moving average is $57.87 and its 200-day moving average is $51.38. The company has a debt-to-equity ratio of 4.56, a current ratio of 1.49 and a quick ratio of 1.49.

Frontdoor (NASDAQ:FTDR - Get Free Report) last issued its quarterly earnings data on Tuesday, August 5th. The company reported $1.63 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.44 by $0.19. The firm had revenue of $617.00 million during the quarter, compared to analysts' expectations of $602.62 million. Frontdoor had a net margin of 13.07% and a return on equity of 125.21%. Frontdoor's revenue for the quarter was up 13.8% on a year-over-year basis. During the same period in the prior year, the company posted $1.27 earnings per share. Equities research analysts predict that Frontdoor will post 3.07 EPS for the current year.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in FTDR. Wasatch Advisors LP acquired a new position in shares of Frontdoor during the fourth quarter valued at about $56,507,000. Nuveen LLC acquired a new position in Frontdoor in the first quarter worth about $32,213,000. Price T Rowe Associates Inc. MD raised its position in Frontdoor by 621.4% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 881,083 shares of the company's stock worth $48,169,000 after purchasing an additional 758,947 shares in the last quarter. Fiera Capital Corp acquired a new position in Frontdoor in the first quarter worth about $28,024,000. Finally, Fuller & Thaler Asset Management Inc. raised its position in Frontdoor by 33.1% in the first quarter. Fuller & Thaler Asset Management Inc. now owns 2,752,723 shares of the company's stock worth $105,760,000 after purchasing an additional 685,148 shares in 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.