Some Frontdoor, Inc. (NASDAQ:FTDR) shareholders may be a little concerned to see that the Senior VP, Jeffrey Fiarman, recently sold a substantial US$515k worth of stock at a price of US$44.81 per share. That sale reduced their total holding by 42% which is hardly insignificant, but far from the worst we've seen.

Frontdoor Insider Transactions Over The Last Year

Notably, that recent sale by Jeffrey Fiarman is the biggest insider sale of Frontdoor shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$44.83. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 42% of Jeffrey Fiarman's holding.

Jeffrey Fiarman divested 19.55k shares over the last 12 months at an average price of US$40.46. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does Frontdoor Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Frontdoor insiders own 0.6% of the company, worth about US$20m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Frontdoor Tell Us?

An insider hasn't bought Frontdoor stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. On the plus side, Frontdoor makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! 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. At Simply Wall St, we found 2 warning signs for Frontdoor that deserve your attention before buying any shares.

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.

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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.