We wouldn't blame Frontdoor, Inc. (NASDAQ:FTDR) shareholders if they were a little worried about the fact that Evan Iverson, the Senior VP & COO recently netted about US$1.6m selling shares at an average price of US$85.50. That diminished their holding by a very significant 99%, which arguably implies a strong desire to reallocate capital.

The Last 12 Months Of Insider Transactions At Frontdoor

In fact, the recent sale by Evan Iverson was the biggest sale of Frontdoor shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of US$84.66. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Insiders in Frontdoor didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Frontdoor better if I see some big insider buys.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Frontdoor insiders own about US$45m worth of shares. That equates to 0.8% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Frontdoor Insider Transactions Indicate?

Insiders sold Frontdoor shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Frontdoor is growing earnings. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. 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.

Of course Frontdoor may not be the best stock to buy. So you may wish to see this free collection of high quality 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 of direct interests only, but not derivative transactions or indirect interests.

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.