Recent Insider Trading In Frontdoor Stock

Frontdoor, Inc. ( NASDAQ:FTDR ) Senior VP & Chief Operations Officer Evan Iverson recently netted about US$941k selling shares at an average price of US$58.84. While insider selling is in some cases not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued.

Check out our latest analysis for Frontdoor

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Frontdoor insiders own about US$19m worth of shares through direct individual holdings. That equates to 0.4% of the company. This is enough to indicate some alignment between management and smaller shareholders.

So What Do The Frontdoor Insider Transactions Indicate?

While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision.

You may also want to take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.