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

Shares of Frontdoor, Inc. (NASDAQ:FTDR) reached a new 52-week high on Tuesday following a better than expected earnings announcement. The stock traded as high as $54.24 and last traded at $53.99, with a volume of 12000 shares. The stock had previously closed at $52.93.

The company reported $1.38 EPS for the quarter, beating analysts’ consensus estimates of $1.05 by $0.33. The company had revenue of $540.00 million for the quarter, compared to analyst estimates of $541.88 million. Frontdoor had a return on equity of 132.94% and a net margin of 11.38%. The company’s quarterly revenue was up 3.1% compared to the same quarter last year. During the same period last year, the company earned $0.94 earnings per share.

Analysts Set New Price Targets

Several equities research analysts recently commented on the company. Truist Financial boosted their target price on Frontdoor from $56.00 to $58.00 and gave the stock a “buy” rating in a report on Tuesday. JPMorgan Chase & Co. raised their target price on Frontdoor from $45.00 to $55.00 and gave the company an “overweight” rating in a research note on Monday, August 12th. William Blair raised shares of Frontdoor from a “market perform” rating to an “outperform” rating in a report on Friday, August 2nd. Finally, The Goldman Sachs Group lifted their price objective on shares of Frontdoor from $41.00 to $46.00 and gave the stock a “sell” rating in a research note on Tuesday. One research 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’s stock. According to data from MarketBeat, Frontdoor presently has an average rating of “Hold” and a consensus target price of $49.50.

Hedge Funds Weigh In On Frontdoor

A number of institutional investors have recently bought and sold shares of the stock. Exchange Traded Concepts LLC purchased a new position in shares of Frontdoor in the third quarter worth approximately $27,000. GAMMA Investing LLC lifted its holdings in shares of Frontdoor by 90.7% in the second quarter. GAMMA Investing LLC now owns 879 shares of the company’s stock valued at $30,000 after purchasing an additional 418 shares in the last quarter. V Square Quantitative Management LLC acquired a new stake in shares of Frontdoor in the third quarter worth $31,000. Isthmus Partners LLC grew its holdings in shares of Frontdoor by 0.5% during the second quarter. Isthmus Partners LLC now owns 110,249 shares of the company’s stock valued at $37,000 after buying an additional 603 shares in the last quarter. Finally, Quarry LP raised its position in Frontdoor by 468.1% during the second quarter. Quarry LP now owns 1,085 shares of the company’s stock valued at $37,000 after buying an additional 894 shares during the period.

Frontdoor Stock Performance

The company has a debt-to-equity ratio of 2.66, a quick ratio of 1.27 and a current ratio of 1.27. The firm has a 50 day moving average of $48.90 and a 200-day moving average of $41.32. The stock has a market capitalization of $4.20 billion, a PE ratio of 20.82 and a beta of 1.03.

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.