Frontdoor, Inc. (FTDR)

In the past six months, Frontdoor's stock price increased by 35.61% over the past year, reaching a 52-week high in October 2025. Key events impacting the stock include Q4 2024 earnings beating expectations but disappointing Q1 2025 guidance, Q1 2025 earnings beating estimates and increasing full-year guidance, and Q2 2025 earnings surpassing analysts' consensus. Several brokerages adjusted their ratings and price targets, while insiders have sold more shares than they have bought in the past three months.

The home warranty industry is highly seasonal, with revenues typically peaking during the second and third quarters of each year, aligning with increased activity in the real estate market. Demand for home warranty services also tends to spike during periods of extreme temperatures. While home warranty sales traditionally follow the housing market, there is also a growing direct-to-consumer market.

Frontdoor, Inc. operates as a home services subscription platform in the United States, offering home and new home structural warranties. The company's customizable home warranties protect and maintain homes from breakdowns of essential systems and appliances, with optional coverage for electronics, pools, and spas. Frontdoor also offers non-warranty home services through its website and app, utilizing video chat, augmented reality, and video collaboration tools. The company operates under brands including American Home Shield and 2-10 HBW, with the acquisition of 2-10 Home Buyers Warranty diversifying its portfolio and customer base.

Frontdoor, Inc. operates in 47 states across the United States, representing approximately 82% of the total U.S. residential market.

Frontdoor maintains strong brand recognition through its key brands like ServiceMaster and American Home Shield, with a combined brand value estimated at $250 million. The acquisition of 2-10 Home Buyers Warranty enhanced the company's offerings and reputation. However, Frontdoor has faced challenges regarding customer service and repair experiences, with customer reviews showing numerous complaints about delays, substandard repairs, and difficulty reaching customer service.

Frontdoor, Inc. has a diverse ownership structure. Institutional shareholders hold approximately 100.78% of the stock, while Frontdoor insiders own about 0.83%, and retail investors hold 0.00%. Major institutional owners include BlackRock, Inc., Vanguard Group Inc, and Boston Partners. Recent insider trading activity shows that insiders have primarily been selling shares in the past three months.