Yahoo Finance Independent Director Peter Cella Just Bought Shares In frontdoor, inc. (NASDAQ:FTDR)
Investors who take an interest in frontdoor, inc. (NASDAQ:FTDR) should definitely note that the Independent Director, Peter Cella, recently paid US$45.22 per share to buy US$362k worth of the stock. We reckon that's a good sign, especially since the purchase boosted their holding by 51%.
Check out our latest analysis for frontdoor
frontdoor Insider Transactions Over The Last Year
Notably, that recent purchase by Peter Cella is the biggest insider purchase of frontdoor shares that we've seen in the last year. That implies that an insider found the current price of US$47.31 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the frontdoor insider decided to buy shares at close to current prices. Peter Cella was the only individual insider to buy over the year.
Peter Cella purchased 15.00k shares over the year. The average price per share was US$42.07. You can see the insider transactions (by individuals) over the last year depicted in the chart 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.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Our data suggests frontdoor insiders own 0.09% of the company, worth about US$3.5m. We prefer to see high levels of insider ownership.
So What Do The frontdoor Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that frontdoor insiders are reasonably well aligned, and optimistic for the future. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, 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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