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From what we can see, insiders were net buyers in Frontdoor, Inc.'s (NASDAQ:FTDR ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Frontdoor
Frontdoor Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Independent Director Peter Cella for US$176k worth of shares, at about US$35.24 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$31.88). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Peter Cella was the only individual insider to buy shares in the last twelve months.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Frontdoor is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Frontdoor Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Frontdoor insiders own 0.2% of the company, worth about US$6.4m. Whilst better than nothing, we're not overly impressed by these holdings.
So What Does This Data Suggest About Frontdoor Insiders?
It doesn't really mean much that no insider has traded Frontdoor shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Frontdoor stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Frontdoor. For example - Frontdoor has 1 warning sign we think you should be aware of.
Of course Frontdoor may not be the best stock to buy. So you may wish to see this free collection of high quality companies.