Frontdoor (NASDAQ:FTDR) Hits New 52-Week High After Better-Than-Expected Earnings

Key Points

• Frontdoor shares hit a 52-week high after quarterly results beat expectations, trading as high as $101.27 versus a prior close of $92.86.
• The company reported EPS of $1.81, above the $1.77 consensus, and revenue of $655 million, topping estimates of $647.73 million; revenue rose 6% year over year.
• Analyst sentiment was broadly positive: five analysts rated the stock Buy and two Hold, for a consensus “Moderate Buy” rating and a $95.40 average price target.

Frontdoor Inc. (NASDAQ:FTDR - Get Free Report)'s stock price hit a new 52-week high on Thursday following a better than expected earnings announcement. The company traded as high as $101.27 and last traded at $97.7890, with a volume of 40,616 shares trading hands. The stock had previously closed at $92.86.

The company reported $1.81 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.77 by $0.04. The business had revenue of $655.00 million during the quarter, compared to analyst estimates of $647.73 million. Frontdoor had a net margin of 12.72% and a return on equity of 120.90%. The company's revenue for the quarter was up 6.0% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.58 earnings per share.

Wall Street Analysts Forecast Growth

A number of research firms have commented on FTDR. Oppenheimer increased their price objective on shares of Frontdoor from $70.00 to $100.00 and gave the company an "outperform" rating in a report on Friday, August 7th. Benchmark boosted their target price on Frontdoor from $80.00 to $96.00 and gave the stock a "buy" rating in a report on Friday, August 7th. The Goldman Sachs Group dropped their price target on Frontdoor from $91.00 to $81.00 and set a "neutral" rating for the company in a research report on Monday, October 12th. Truist Financial increased their price target on Frontdoor from $82.00 to $105.00 and gave the company a "buy" rating in a report on Friday, August 7th. Finally, Weiss Ratings raised Frontdoor from a "hold (c+)" rating to a "buy (b)" rating in a report on Wednesday, October 21st. Five equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $95.40.

Institutional Investors Weigh In On Frontdoor

Hedge funds and other institutional investors have recently bought and sold shares of the company. BlackRock Inc. acquired a new stake in shares of Frontdoor in the second quarter valued at $859,552,000. Jupiter Topco LLC acquired a new position in Frontdoor during the 2nd quarter worth about $113,873,000. Bank of America Corp DE acquired a new position in Frontdoor during the 2nd quarter worth about $46,580,000. Bank of New York Mellon Corp purchased a new position in Frontdoor during the 2nd quarter valued at about $33,812,000. Finally, Danske Bank A S purchased a new position in Frontdoor during the 2nd quarter valued at about $28,742,000.

Frontdoor Stock Performance

The company has a market capitalization of $6.70 billion, a price-to-earnings ratio of 25.79 and a beta of 1.60. The company has a debt-to-equity ratio of 3.98, a quick ratio of 1.59 and a current ratio of 1.59. The firm has a 50-day simple moving average of $80.37 and a two-hundred day simple moving average of $69.78.

About Frontdoor

Frontdoor, Inc NASDAQ: FTDR is a provider of home warranties and related home repair services. The company helps homeowners manage the cost and complexity of maintaining household systems and appliances, including heating and cooling equipment, plumbing, electrical systems, water heaters and major kitchen appliances.

Frontdoor operates primarily through its American Home Shield brand, which offers home service plans and access to a network of professional contractors. The company also provides digital tools and services designed to help homeowners diagnose household problems, request service and connect with qualified professionals.

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