Frontdoor (NASDAQ:FTDR) Trading Down 6% – Here’s Why

Frontdoor Inc. (NASDAQ:FTDR) traded down 6% during mid-day trading on Monday . The company traded as low as $87.05 and last traded at $85.35. 72,141 shares changed hands during mid-day trading, a decline of 88% from the average daily volume of 613,329 shares. The stock had previously closed at $90.83.

Frontdoor News Summary

Here are the key news stories impacting Frontdoor this week:

• Positive Sentiment: Zacks upgraded Frontdoor to a Rank #2 (Buy), citing improving earnings prospects. The upgrade could attract additional buying and support the stock in the near term. All You Need to Know About Frontdoor Rating Upgrade to Buy
• Positive Sentiment: Two price-target increases provide further support: one firm raised its target to $105 from an unspecified prior level, while another raised its target to $96. The higher targets imply analysts see additional upside. Frontdoor Price Target Raised to $105 Frontdoor Price Target Raised to $96
• Positive Sentiment: An investor letter highlighted Frontdoor’s free-cash-flow generation and upward potential, reinforcing the investment case around cash production and shareholder value. Frontdoor’s Free Cash Flow Powers Upward Potential
• Positive Sentiment: Analysts pointed to Frontdoor’s strong growth characteristics and recent outperformance relative to construction-related peers, which may appeal to growth-oriented investors. 3 Reasons Growth Investors Will Love Frontdoor Are Construction Stocks Lagging Frontdoor This Year?
• Neutral Sentiment: Frontdoor’s CFO was scheduled to participate in a KeyBanc Technology Leadership Forum fireside chat. The event could provide updates on strategy and financial performance, but no new operating information was disclosed in the announcement. Frontdoor to Attend and Present at the KeyBanc Technology Leadership Forum
• Neutral Sentiment: Frontdoor reached a fresh 52-week high, confirming strong momentum, but the report also raises the question of whether gains can continue at current valuation levels. Frontdoor Hits Fresh High
• Neutral Sentiment: The reported August short-interest data showed zero shares short versus zero previously, with a zero-day short-interest ratio and an invalid percentage change. Consequently, it offers no meaningful signal about buying pressure or short-covering potential.

Analysts Set New Price Targets

FTDR has been the topic of several recent research reports. Benchmark upped their price objective on shares of Frontdoor from $80.00 to $96.00 and gave the company a “buy” rating in a report on Friday, August 7th. Weiss Ratings cut Frontdoor from a “buy (b)” rating to a “buy (b-)” rating in a research report on Thursday, May 21st. Truist Financial upped their price target on shares of Frontdoor from $82.00 to $105.00 and gave the stock a “buy” rating in a research report on Friday, August 7th. The Goldman Sachs Group reissued a “neutral” rating on shares of Frontdoor in a research note on Friday. Finally, Oppenheimer raised their target price on shares of Frontdoor from $70.00 to $100.00 and gave the stock an “outperform” rating in a research note on Friday. Four investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $92.00.

Frontdoor Price Performance

The company has a quick ratio of 1.59, a current ratio of 1.59 and a debt-to-equity ratio of 3.98. The stock has a fifty day moving average of $73.89 and a 200-day moving average of $65.10. The stock has a market capitalization of $5.87 billion, a price-to-earnings ratio of 22.17 and a beta of 1.47.

Frontdoor (NASDAQ:FTDR) last posted its quarterly earnings data on Thursday, August 6th. The company reported $1.93 EPS for the quarter, beating analysts’ consensus estimates of $1.76 by $0.17. The company had revenue of $645.00 million for the quarter, compared to analyst estimates of $643.40 million. Frontdoor had a net margin of 12.72% and a return on equity of 120.90%. Frontdoor’s quarterly revenue was up 4.5% on a year-over-year basis. During the same period in the previous year, the business posted $1.63 earnings per share. On average, equities research analysts predict that Frontdoor Inc. will post 4.66 EPS for the current fiscal year.

Institutional Investors Weigh In On Frontdoor

Hedge funds have recently made changes to their positions in the business. Keating Financial Advisory Services Inc. purchased a new stake in Frontdoor during the second quarter worth approximately $25,000. Private Trust Co. NA raised its holdings in Frontdoor by 256.3% in the fourth quarter. Private Trust Co. NA now owns 563 shares of the company’s stock valued at $32,000 after acquiring an additional 405 shares in the last quarter. EverSource Wealth Advisors LLC lifted its position in shares of Frontdoor by 164.6% during the second quarter. EverSource Wealth Advisors LLC now owns 799 shares of the company’s stock worth $47,000 after purchasing an additional 497 shares during the last quarter. Quarry LP grew its position in shares of Frontdoor by 429.5% in the 3rd quarter. Quarry LP now owns 879 shares of the company’s stock worth $59,000 after acquiring an additional 713 shares in the last quarter. Finally, Global Retirement Partners LLC boosted its holdings in Frontdoor by 8,376.9% in the fourth quarter. Global Retirement Partners LLC now owns 1,102 shares of the company’s stock worth $64,000 after purchasing an additional 1,089 shares during the period.

Frontdoor Company Profile

Frontdoor, Inc (NASDAQ:FTDR) is a leading provider of home service plans and repair solutions for residential property owners. The company offers contract-based coverage that helps homeowners manage the cost of repairing and replacing essential household systems and appliances, including heating and cooling, plumbing, electrical wiring, water heaters, washers, dryers, refrigerators and other major kitchen equipment.

Frontdoor delivers its services through a nationwide network of independent service professionals and contractors, leveraging a cloud-based platform and call center infrastructure to coordinate service visits and process claims.