Frontier Group (NASDAQ:ULCC) Downgraded by Zacks Research to "Hold"

Key Points

• Zacks Research downgraded Frontier Group to “Hold” from “Strong Buy,” while the broader analyst consensus is “Reduce,” with six Hold and three Sell ratings and an average price target of $6.86.
• Frontier reported better-than-expected quarterly results, posting an EPS loss of $0.10 versus the $0.47 expected and revenue of $1.28 billion, up 37.7% year over year.
• ULCC shares opened at $5.84, below their 50-day average of $6.79, while insiders sold more than 12 million shares worth approximately $87.1 million in the past quarter.

Frontier Group (NASDAQ:ULCC - Get Free Report) was downgraded by Zacks Research from a "strong-buy" rating to a "hold" rating in a report issued on Thursday,Zacks.com reports.

ULCC has been the subject of a number of other reports. Wall Street Zen raised shares of Frontier Group from a "sell" rating to a "hold" rating in a report on Sunday, June 21st. Susquehanna upped their price target on shares of Frontier Group from $4.50 to $7.00 and gave the company a "neutral" rating in a research note on Tuesday, July 7th. UBS Group increased their price objective on shares of Frontier Group from $4.00 to $7.00 and gave the company a "neutral" rating in a research report on Tuesday, June 23rd. Barclays lifted their price objective on shares of Frontier Group from $4.00 to $7.00 and gave the stock an "underweight" rating in a research note on Thursday, June 25th. Finally, Weiss Ratings downgraded shares of Frontier Group from a "sell (d)" rating to a "sell (d-)" rating in a report on Thursday, July 30th. Six analysts have rated the stock with a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, Frontier Group presently has an average rating of "Reduce" and an average price target of $6.86.

Frontier Group Price Performance

Shares of NASDAQ:ULCC opened at $5.84 on Thursday. The firm has a market cap of $1.34 billion, a price-to-earnings ratio of -3.48 and a beta of 2.59. The firm has a fifty day moving average price of $6.79 and a 200 day moving average price of $5.38. Frontier Group has a fifty-two week low of $3.02 and a fifty-two week high of $8.40. The company has a debt-to-equity ratio of 2.77, a quick ratio of 0.54 and a current ratio of 0.58.

Frontier Group (NASDAQ:ULCC - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The company reported ($0.10) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.47) by $0.37. Frontier Group had a negative net margin of 9.29% and a negative return on equity of 35.54%. The company had revenue of $1.28 billion for the quarter, compared to the consensus estimate of $1.22 billion. During the same period in the previous year, the firm posted ($0.31) EPS. Frontier Group's revenue for the quarter was up 37.7% compared to the same quarter last year. Frontier Group has set its Q4 2026 guidance at 0.000-0.200 EPS and its Q3 2026 guidance at -0.100-0.100 EPS. As a group, sell-side analysts expect that Frontier Group will post -0.34 earnings per share for the current fiscal year.

Insider Activity

In other news, VP Trevor J. Stedke sold 167,277 shares of the business's stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $8.03, for a total transaction of $1,343,234.31. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, SVP Steve Schuller sold 10,000 shares of the stock in a transaction on Friday, June 5th. The shares were sold at an average price of $6.00, for a total value of $60,000.00. Following the sale, the senior vice president owned 97,175 shares in the company, valued at $583,050. The trade was a 9.33% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 12,053,742 shares of company stock worth $87,051,587. Company insiders own 48.00% of the company's stock.

Institutional Investors Weigh In On Frontier Group

Several hedge funds and other institutional investors have recently made changes to their positions in ULCC. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in shares of Frontier Group by 3.9% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 92,787 shares of the company's stock worth $734,000 after purchasing an additional 3,461 shares during the period. Straightline Group LLC raised its position in Frontier Group by 9.5% in the 4th quarter. Straightline Group LLC now owns 60,586 shares of the company's stock worth $285,000 after purchasing an additional 5,232 shares during the period. Allworth Financial LP purchased a new stake in Frontier Group in the 2nd quarter worth about $43,000. Legal & General Group Plc bought a new stake in Frontier Group in the second quarter worth about $46,000. Finally, AQR Capital Management LLC lifted its stake in Frontier Group by 46.0% in the first quarter. AQR Capital Management LLC now owns 18,777 shares of the company's stock worth $81,000 after purchasing an additional 5,913 shares during the last quarter.

About Frontier Group

Frontier Group, trading on Nasdaq under the ticker ULCC, is the holding company for Frontier Airlines, an ultra-low-cost carrier based in Denver, Colorado. The company’s core business centers on providing no-frills air travel across a point-to-point network while generating ancillary revenue from add-on services such as baggage fees, seat selection, priority boarding and in-flight refreshments. This fare-plus-a-la-carte model allows Frontier to offer competitive base fares and maintain low operating costs.

Founded in February 1994 by industry veterans Andrew Levy and Russell Beardsmore, Frontier Airlines commenced operations with a small fleet of MD-80 aircraft.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source