Frontdoor (NASDAQ:FTDR) Shares Gap Up Following Better-Than-Expected Earnings

Frontdoor, Inc. (NASDAQ:FTDR) gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $41.11, but opened at $48.73. Frontdoor shares last traded at $47.89, with a volume of 222,754 shares trading hands.

The company reported $0.64 earnings per share for the quarter, topping the consensus estimate of $0.37 by $0.27. Frontdoor had a return on equity of 132.99% and a net margin of 12.87%. The company had revenue of $426.00 million during the quarter, compared to analyst estimates of $416.37 million. During the same period in the prior year, the business posted $0.44 earnings per share. The firm’s revenue for the quarter was up 12.7% compared to the same quarter last year.

Analyst Upgrades and Downgrades

FTDR has been the subject of several research analyst reports. The Goldman Sachs Group lowered their target price on shares of Frontdoor from $46.00 to $40.00 and set a “sell” rating for the company in a research note on Monday, March 3rd. Truist Financial lifted their target price on shares of Frontdoor from $58.00 to $67.00 and gave the company a “buy” rating in a report on Friday, February 14th. Finally, JPMorgan Chase & Co. cut Frontdoor from an “overweight” rating to a “neutral” rating and decreased their price target for the stock from $58.00 to $40.00 in a research note on Tuesday, April 22nd. One equities research analyst has rated the stock with a sell rating, two have assigned a hold rating and two have assigned a buy rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $46.50.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. Bessemer Group Inc. boosted its position in Frontdoor by 514.7% in the 4th quarter. Bessemer Group Inc. now owns 627 shares of the company’s stock valued at $34,000 after buying an additional 525 shares during the period. USA Financial Formulas purchased a new position in Frontdoor in the fourth quarter valued at $60,000. TD Private Client Wealth LLC grew its stake in Frontdoor by 12.9% during the 4th quarter. TD Private Client Wealth LLC now owns 1,597 shares of the company’s stock worth $87,000 after purchasing an additional 183 shares in the last quarter. Blue Trust Inc. increased its holdings in Frontdoor by 315.3% during the 4th quarter. Blue Trust Inc. now owns 1,632 shares of the company’s stock worth $89,000 after purchasing an additional 1,239 shares during the period. Finally, GAMMA Investing LLC raised its position in Frontdoor by 16.5% in the 1st quarter. GAMMA Investing LLC now owns 2,447 shares of the company’s stock valued at $94,000 after purchasing an additional 347 shares in the last quarter.

Frontdoor Stock Up 10.7 %

The firm has a 50 day moving average price of $40.21 and a 200-day moving average price of $50.93. The company has a current ratio of 1.42, a quick ratio of 1.42 and a debt-to-equity ratio of 2.16. The firm has a market cap of $3.84 billion, a PE ratio of 17.05 and a beta of 1.19.

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.