Yahoo Finance The Independent Director of frontdoor, inc. (NASDAQ:FTDR), Peter Cella, Just Bought 21% More Shares
Investors who take an interest in frontdoor, inc. (NASDAQ:FTDR) should definitely note that the Independent Director, Peter Cella, recently paid US$34.78 per share to buy US$174k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 21%.
See our latest analysis for frontdoor
The Last 12 Months Of Insider Transactions At frontdoor
In fact, the recent purchase by Independent Director Peter Cella was not their only acquisition of frontdoor shares this year. Earlier in the year, they paid US$45.22 per share in a US$362k purchase. That means that an insider was happy to buy shares at above the current price of US$37.20. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Peter Cella was the only individual insider to buy over the year.
Peter Cella bought a total of 20.00k shares over the year at an average price of US$40.25. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From looking at our data, insiders own US$3.3m worth of frontdoor stock, about 0.1% of the company. We consider this fairly low insider ownership.
So What Do The frontdoor Insider Transactions Indicate?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on frontdoor stock. While we like knowing 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. For instance, we've identified 2 warning signs for frontdoor (1 shouldn't be ignored) you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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, but not derivative transactions.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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