Frontdoor (NASDAQ:FTDR) Sees Large Volume Increase - Should You Buy?

Frontdoor, Inc. (NASDAQ:FTDR - Get Free Report) saw unusually-high trading volume on Tuesday . Approximately 1,585,287 shares traded hands during mid-day trading, an increase of 125% from the previous session's volume of 703,199 shares.The stock last traded at $56.94 and had previously closed at $55.68.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on FTDR. Truist Financial lifted their price objective on Frontdoor from $56.00 to $58.00 and gave the stock a "buy" rating in a research report on Tuesday, November 5th. The Goldman Sachs Group lifted their price objective on Frontdoor from $41.00 to $46.00 and gave the stock a "sell" rating in a research report on Tuesday, November 5th. One investment analyst has rated the stock with a sell rating, one has issued a hold rating and three have assigned a buy rating to the company. Based on data from MarketBeat, Frontdoor has a consensus rating of "Hold" and an average price target of $49.50.

Frontdoor Stock Up 1.3 %

The company has a quick ratio of 1.42, a current ratio of 1.42 and a debt-to-equity ratio of 2.16. The company has a market capitalization of $4.28 billion, a P/E ratio of 18.67 and a beta of 1.08. The company has a 50-day moving average of $56.80 and a two-hundred day moving average of $49.13.

Frontdoor (NASDAQ:FTDR - Get Free Report) last released its quarterly earnings results on Monday, November 4th. The company reported $1.38 earnings per share for the quarter, beating the consensus estimate of $1.05 by $0.33. Frontdoor had a return on equity of 132.99% and a net margin of 12.87%. The company had revenue of $540.00 million for the quarter, compared to analyst estimates of $541.88 million. During the same period in the previous year, the company posted $0.94 earnings per share. The firm's revenue was up 3.1% on a year-over-year basis. On average, research analysts predict that Frontdoor, Inc. will post 3.14 EPS for the current year.

Insiders Place Their Bets

In other news, COO Evan Iverson sold 16,000 shares of the business's stock in a transaction on Wednesday, December 11th. The stock was sold at an average price of $58.84, for a total value of $941,440.00. Following the completion of the transaction, the chief operating officer now owns 4,955 shares in the company, valued at $291,552.20. The trade was a 76.35 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, SVP Kathryn M. Collins sold 25,784 shares of the company's stock in a transaction on Tuesday, December 10th. The shares were sold at an average price of $58.06, for a total value of $1,497,019.04. Following the sale, the senior vice president now owns 9,429 shares of the company's stock, valued at approximately $547,447.74. This trade represents a 73.22 % decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 0.29% of the company's stock.

Institutional Trading of Frontdoor

A number of hedge funds have recently bought and sold shares of the company. Exchange Traded Concepts LLC purchased a new stake in Frontdoor in the third quarter worth about $27,000. V Square Quantitative Management LLC purchased a new stake in Frontdoor in the third quarter worth about $31,000. Quarry LP increased its position in Frontdoor by 468.1% in the second quarter. Quarry LP now owns 1,085 shares of the company's stock worth $37,000 after buying an additional 894 shares in the last quarter. USA Financial Formulas purchased a new stake in Frontdoor in the fourth quarter worth about $60,000. Finally, TD Private Client Wealth LLC purchased a new stake in Frontdoor in the third quarter worth about $68,000.

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.