Frontdoor (NASDAQ:FTDR) Hits New 12-Month High Following Earnings Beat

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 during mid-day trading 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 trading hands. The stock had previously closed at $58.49.

The company reported $1.63 earnings per share for the quarter, topping analysts' consensus estimates of $1.44 by $0.19. The company had revenue of $617.00 million during the quarter, compared to analyst estimates 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 business posted $1.27 earnings per share.

Analyst Ratings Changes

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

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Principal Financial Group Inc. boosted its stake in shares of Frontdoor by 2.3% during the 1st quarter. Principal Financial Group Inc. now owns 408,982 shares of the company's stock worth $15,713,000 after acquiring an additional 9,161 shares during the last quarter. Oppenheimer Asset Management Inc. boosted its holdings in Frontdoor by 48.7% in the 1st quarter. Oppenheimer Asset Management Inc. now owns 24,317 shares of the company's stock worth $934,000 after buying an additional 7,967 shares during the period. GAMMA Investing LLC boosted its holdings in Frontdoor by 16.5% in the 1st quarter. GAMMA Investing LLC now owns 2,447 shares of the company's stock worth $94,000 after buying an additional 347 shares during the period. New York State Common Retirement Fund boosted its holdings in Frontdoor by 775.3% in the 1st quarter. New York State Common Retirement Fund now owns 212,552 shares of the company's stock worth $8,166,000 after buying an additional 188,268 shares during the period. Finally, Envestnet Asset Management Inc. boosted its holdings in Frontdoor by 126.1% in the 1st quarter. Envestnet Asset Management Inc. now owns 138,646 shares of the company's stock worth $5,327,000 after buying an additional 77,330 shares during the period.

Frontdoor Price Performance

The company has a market cap of $4.00 billion, a P/E ratio of 16.19 and a beta of 1.32. The company has a debt-to-equity ratio of 4.56, a quick ratio of 1.34 and a current ratio of 1.49. The firm's fifty day moving average is $57.87 and its two-hundred day moving average is $51.48.

Frontdoor Company Profile

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.