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

Shares of Frontdoor, Inc. (NASDAQ:FTDR) gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $39.46, but opened at $42.68. Frontdoor shares last traded at $47.79, with a volume of 192,979 shares trading hands.

The company reported $1.27 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.00 by $0.27. Frontdoor had a net margin of 11.38% and a return on equity of 132.94%. The company had revenue of $542.00 million for the quarter, compared to the consensus estimate of $536.74 million. During the same period last year, the firm posted $0.87 EPS. Frontdoor’s revenue for the quarter was up 3.6% on a year-over-year basis.

Analyst Ratings Changes

Several research analysts have weighed in on the company. Truist Financial lifted their target price on Frontdoor from $45.00 to $56.00 and gave the company a “buy” rating in a research note on Friday. Wells Fargo & Company boosted their price objective on shares of Frontdoor from $36.00 to $39.00 and gave the company an “equal weight” rating in a research note on Monday, May 6th. William Blair upgraded shares of Frontdoor from a “market perform” rating to an “outperform” rating in a research note on Friday. Finally, The Goldman Sachs Group boosted their price target on shares of Frontdoor from $33.00 to $41.00 and gave the stock a “sell” rating in a research note on Friday. One investment analyst has rated the stock with a sell rating, one has assigned a hold rating and three have given a buy rating to the company’s stock. Based on data from MarketBeat.com, Frontdoor has an average rating of “Hold” and an average price target of $45.00.

Hedge Funds Weigh In On Frontdoor

Large investors have recently made changes to their positions in the stock. GAMMA Investing LLC grew its holdings in Frontdoor by 90.7% during the 2nd quarter. GAMMA Investing LLC now owns 879 shares of the company’s stock valued at $30,000 after buying an additional 418 shares during the last quarter. Covestor Ltd boosted its stake in Frontdoor by 288.6% in the 1st quarter. Covestor Ltd now owns 1,154 shares of the company’s stock worth $38,000 after buying an additional 857 shares during the last quarter. Parkside Financial Bank & Trust increased its stake in shares of Frontdoor by 9,892.9% during the 4th quarter. Parkside Financial Bank & Trust now owns 1,399 shares of the company’s stock valued at $49,000 after acquiring an additional 1,385 shares during the last quarter. C M Bidwell & Associates Ltd. purchased a new position in shares of Frontdoor during the 4th quarter worth about $71,000. Finally, Quadrant Capital Group LLC boosted its position in shares of Frontdoor by 13.7% in the fourth quarter. Quadrant Capital Group LLC now owns 2,839 shares of the company’s stock worth $100,000 after acquiring an additional 341 shares during the last quarter.

Frontdoor Trading Down 1.1 %

The company has a quick ratio of 1.14, a current ratio of 1.27 and a debt-to-equity ratio of 2.66. The stock has a market capitalization of $3.42 billion, a PE ratio of 19.30 and a beta of 0.99. The business’s fifty day moving average is $35.81 and its 200-day moving average is $33.66.

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.