Frontdoor (NASDAQ:FTDR) Upgraded by Zacks Research to Strong-Buy Rating

Key Points

• Frontdoor was upgraded by Zacks Research from a "hold" to a "strong-buy" rating, reflecting increased confidence in the stock.
• Several analysts have recently adjusted their price targets for Frontdoor, with Oppenheimer raising it to $63 and Goldman Sachs adjusting it to $50 with a "sell" rating.
• In its latest quarterly earnings report, Frontdoor exceeded expectations with $1.63 earnings per share, significantly above the consensus estimate of $1.44.

Zacks Research upgraded shares of Frontdoor (NASDAQ:FTDR - Free Report) from a hold rating to a strong-buy rating in a research note issued to investors on Wednesday morning,Zacks.com reports.

Other equities analysts have also issued research reports about the stock. Truist Financial lifted their price target on shares of Frontdoor from $67.00 to $71.00 and gave the company a "buy" rating in a research report on Wednesday, August 6th. JPMorgan Chase & Co. lifted 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. Oppenheimer lifted 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, August 6th. Finally, The Goldman Sachs Group lifted 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, August 6th. One 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 given a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $59.75.

Frontdoor Stock Performance

Shares of NASDAQ:FTDR traded up $0.37 during trading on Wednesday, reaching $60.75. The stock had a trading volume of 774,757 shares, compared to its average volume of 720,552. Frontdoor has a 52 week low of $35.61 and a 52 week high of $64.91. The firm has a market capitalization of $4.43 billion, a price-to-earnings ratio of 17.92 and a beta of 1.34. The company has a quick ratio of 1.49, a current ratio of 1.49 and a debt-to-equity ratio of 4.56. The stock has a fifty day simple moving average of $58.58 and a two-hundred day simple moving average of $51.36.

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

Insider Transactions at Frontdoor

In related news, SVP Jeffrey Fiarman sold 129,673 shares of the business's stock in a transaction on Thursday, August 7th. The shares were sold at an average price of $56.15, for a total transaction of $7,281,138.95. Following the transaction, the senior vice president owned 34,646 shares of the company's stock, valued at approximately $1,945,372.90. The trade was a 78.92% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Company insiders own 1.48% of the company's stock.

Institutional Investors Weigh In On Frontdoor

Several institutional investors and hedge funds have recently bought and sold shares of the business. Squarepoint Ops LLC increased its holdings in Frontdoor by 936.9% in the 2nd quarter. Squarepoint Ops LLC now owns 163,980 shares of the company's stock valued at $9,665,000 after buying an additional 148,166 shares during the period. Thrivent Financial for Lutherans increased its holdings in Frontdoor by 24.4% in the 2nd quarter. Thrivent Financial for Lutherans now owns 73,471 shares of the company's stock valued at $4,330,000 after buying an additional 14,403 shares during the period. Neuberger Berman Group LLC bought a new stake in Frontdoor in the 2nd quarter valued at $795,000. Hohimer Wealth Management LLC bought a new stake in Frontdoor in the 2nd quarter valued at $208,000. Finally, Public Sector Pension Investment Board increased its holdings in Frontdoor by 2.8% in the 2nd quarter. Public Sector Pension Investment Board now owns 283,303 shares of the company's stock valued at $16,698,000 after buying an additional 7,734 shares during the period.

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.