Frontier Group (NASDAQ:ULCC) Given New $7.00 Price Target at UBS Group

Key Points

• UBS Group raised Frontier Group’s price target from $6.00 to $7.00 while maintaining a “neutral” rating, implying 8.53% upside from the prior close.
• Analyst sentiment remains cautious: Frontier Group has an average “Reduce” rating and a consensus target price of $6.50, based on six Hold and three Sell ratings.
• The company exceeded quarterly expectations, reporting $0.18 in adjusted earnings per share versus a $0.06 loss estimate and revenue of $1.35 billion, up 52.9% year over year.

Frontier Group (NASDAQ:ULCC - Get Free Report) had its price target increased by UBS Group from $6.00 to $7.00 in a research report issued on Friday, Benzinga reports. The brokerage currently has a "neutral" rating on the stock. UBS Group's price objective would indicate a potential upside of 8.53% from the stock's previous close.

ULCC has been the topic of several other reports. Susquehanna lifted their target price on Frontier Group from $6.00 to $6.50 and gave the stock a "neutral" rating in a report on Thursday. Barclays lowered their price target on Frontier Group from $7.00 to $5.00 and set an "underweight" rating for the company in a report on Friday, September 11th. Zacks Research downgraded Frontier Group from a "strong-buy" rating to a "hold" rating in a report on Thursday, August 27th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Frontier Group in a research report on Wednesday. Six investment analysts have rated the stock with a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, Frontier Group presently has an average rating of "Reduce" and a consensus target price of $6.50.

Frontier Group Stock Performance

ULCC opened at $6.45 on Friday. The firm's fifty day moving average is $5.72 and its two-hundred day moving average is $5.43. The company has a debt-to-equity ratio of 10.68, a quick ratio of 0.57 and a current ratio of 0.62. The firm has a market cap of $1.49 billion, a PE ratio of -3.60 and a beta of 2.70. Frontier Group has a twelve month low of $3.02 and a twelve month high of $8.40.

Frontier Group (NASDAQ:ULCC - Get Free Report) last announced its quarterly earnings results on Wednesday, October 28th. The company reported $0.18 earnings per share for the quarter, topping analysts' consensus estimates of ($0.06) by $0.24. Frontier Group had a negative net margin of 8.93% and a positive return on equity of 1.35%. The company had revenue of $1.35 billion for the quarter, compared to analysts' expectations of $1.29 billion. During the same period last year, the firm posted ($0.34) earnings per share. The business's quarterly revenue was up 52.9% compared to the same quarter last year. Equities research analysts anticipate that Frontier Group will post -0.39 EPS for the current year.

Insider Activity at Frontier Group

In related news, CFO Mark Mitchell sold 125,000 shares of the company's stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $8.09, for a total value of $1,011,250.00. Following the completion of the transaction, the chief financial officer directly owned 53,785 shares of the company's stock, valued at approximately $435,120.65. This represents a 69.92% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, VP Trevor J. Stedke sold 167,277 shares of the company's stock in a transaction 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 disclosure for this sale is available in the SEC filing. Insiders have sold 332,520 shares of company stock valued at $2,660,029 over the last three months. Insiders own 48.00% of the company's stock.

Institutional Trading of Frontier Group

Several hedge funds and other institutional investors have recently modified their holdings of the company. Vise Technologies Inc. acquired a new position in shares of Frontier Group during the third quarter worth about $123,000. Signaturefd LLC grew its holdings in shares of Frontier Group by 81.7% during the third quarter. Signaturefd LLC now owns 6,020 shares of the company's stock worth $36,000 after buying an additional 2,707 shares in the last quarter. U S Global Investors Inc. grew its holdings in shares of Frontier Group by 6.1% during the third quarter. U S Global Investors Inc. now owns 5,216,198 shares of the company's stock worth $31,141,000 after buying an additional 301,543 shares in the last quarter. Sequoia Financial Advisors LLC acquired a new stake in Frontier Group in the 2nd quarter valued at approximately $116,000. Finally, Engineers Gate Manager LP raised its position in Frontier Group by 21.0% in the 2nd quarter. Engineers Gate Manager LP now owns 185,048 shares of the company's stock valued at $1,464,000 after buying an additional 32,082 shares during the last quarter.

Frontier Group Company Profile

Frontier Group Holdings, Inc is the parent company of Frontier Airlines, an ultra-low-cost passenger airline headquartered in Denver, Colorado. The company operates a low-fare, point-to-point air transportation business, primarily serving leisure travelers and price-conscious customers.

Frontier Airlines offers scheduled flights to destinations across the United States, as well as selected locations in the Caribbean and Latin America. Its business model emphasizes low base fares with additional charges for optional services such as checked baggage, seat selection, priority boarding and other travel-related products.

Frontier Airlines traces its roots to 1994 and has expanded its network through a fleet focused largely on Airbus narrow-body aircraft.

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