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

Frontdoor, Inc. (NASDAQ:FTDR) shares 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.

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

Wall Street Analysts Forecast Growth

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

Hedge Funds Weigh In On Frontdoor

Institutional investors have recently modified their holdings of the business. Raymond James & Associates raised its holdings in shares of Frontdoor by 27.2% in the fourth quarter. Raymond James & Associates now owns 139,660 shares of the company’s stock valued at $4,919,000 after purchasing an additional 29,877 shares during the last quarter. New York State Teachers Retirement System lifted its position in Frontdoor by 24.2% during the 4th quarter. New York State Teachers Retirement System now owns 37,094 shares of the company’s stock worth $1,306,000 after buying an additional 7,237 shares in the last quarter. DekaBank Deutsche Girozentrale grew its holdings in shares of Frontdoor by 39.9% in the 4th quarter. DekaBank Deutsche Girozentrale now owns 18,706 shares of the company’s stock valued at $653,000 after acquiring an additional 5,331 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. grew its holdings in shares of Frontdoor by 2.7% in the 4th quarter. Mirae Asset Global Investments Co. Ltd. now owns 37,049 shares of the company’s stock valued at $1,305,000 after acquiring an additional 980 shares in the last quarter. Finally, Meeder Asset Management Inc. raised its holdings in Frontdoor by 5.3% during the fourth quarter. Meeder Asset Management Inc. now owns 7,137 shares of the company’s stock worth $251,000 after acquiring an additional 359 shares in the last quarter.

Frontdoor Stock 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 firm has a fifty day moving average of $35.81 and a 200-day moving average of $33.66. The firm has a market cap of $3.42 billion, a P/E ratio of 19.30 and a beta of 0.99.

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.