Frontdoor (NASDAQ:FTDR) Reaches New 1-Year High Following Strong Earnings

Key Points

• Frontdoor Inc. shares hit a new 52-week high at $64.91 after reporting earnings of $1.63 EPS, surpassing analysts' expectations of $1.44 EPS.
• Analyst ratings saw JPMorgan Chase & Co. raise their price target on Frontdoor's shares from $50.00 to $55.00, maintaining a "neutral" rating.
• Frontdoor has a debt-to-equity ratio of 5.88 and a market capitalization of $3.88 billion, highlighting the company's financial leverage and scale.

Frontdoor Inc. (NASDAQ:FTDR - Get Free Report)'s share price reached a new 52-week high on Tuesday after the company announced better than expected quarterly earnings. The stock traded as high as $64.91 and last traded at $53.71, with a volume of 79243 shares. The stock had previously closed at $58.49.

The company reported $1.63 earnings per share for the quarter, topping the consensus estimate of $1.44 by $0.19. The business 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%. The business's revenue was up 13.8% on a year-over-year basis. During the same quarter in the previous year, the company earned $1.27 EPS.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on FTDR shares. Oppenheimer boosted their price objective on Frontdoor from $56.00 to $63.00 and gave the stock an "outperform" rating in a research report on Wednesday. Truist Financial upped their price objective on Frontdoor from $67.00 to $71.00 and gave the company a "buy" rating in a research note on Wednesday. The Goldman Sachs Group lifted their target price on shares of Frontdoor from $44.00 to $50.00 and gave the stock a "sell" rating in a research report on Wednesday. Finally, JPMorgan Chase & Co. upped their price target on shares of Frontdoor from $50.00 to $55.00 and gave the company a "neutral" rating in a research report on Tuesday, June 3rd.

Hedge Funds Weigh In On Frontdoor

Hedge funds have recently bought and sold shares of the company. Profund Advisors LLC purchased a new position in shares of Frontdoor in the 2nd quarter worth about $217,000. Connor Clark & Lunn Investment Management Ltd. grew its stake in Frontdoor by 38.1% in the 2nd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 207,745 shares of the company's stock valued at $12,244,000 after buying an additional 57,279 shares in the last quarter. Los Angeles Capital Management LLC raised its holdings in Frontdoor by 10.6% during the 2nd quarter. Los Angeles Capital Management LLC now owns 47,493 shares of the company's stock valued at $2,799,000 after acquiring an additional 4,548 shares during the period. Fox Run Management L.L.C. boosted its holdings in shares of Frontdoor by 11.9% in the second quarter. Fox Run Management L.L.C. now owns 23,779 shares of the company's stock worth $1,402,000 after acquiring an additional 2,529 shares during the period. Finally, Savant Capital LLC purchased a new position in shares of Frontdoor in the second quarter valued at $224,000.

Frontdoor Price Performance

The company has a quick ratio of 1.34, a current ratio of 1.49 and a debt-to-equity ratio of 4.56. The company has a market capitalization of $4.10 billion, a P/E ratio of 16.61 and a beta of 1.32. The business's 50-day moving average price is $57.88 and its 200 day moving average price is $51.50.

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.