Susquehanna Issues Pessimistic Forecast for Frontier Group (NASDAQ:ULCC) Stock Price

Key Points

• Susquehanna cut Frontier Group’s price target from $7 to $6 while maintaining a neutral rating, implying roughly 4% downside. The stock’s consensus rating is “Reduce,” with an average price target of $6.29.
• Frontier Group reported better-than-expected quarterly results, with an adjusted loss of $0.10 per share versus the $0.47 consensus loss and revenue of $1.28 billion, up 37.7% year over year.
• Insiders have been significant sellers: company insiders sold approximately 12 million shares worth $87 million over the past 90 days, despite retaining 48% ownership of the stock.

Frontier Group (NASDAQ:ULCC - Get Free Report) had its price target decreased by equities researchers at Susquehanna from $7.00 to $6.00 in a research note issued on Wednesday, Benzinga reports. The brokerage currently has a "neutral" rating on the stock. Susquehanna's price objective points to a potential downside of 4.00% from the company's current price.

Other research analysts also recently issued reports about the company. UBS Group lowered their target price on Frontier Group from $7.00 to $6.00 and set a "neutral" rating on the stock in a research note on Thursday, September 24th. Wall Street Zen raised Frontier Group from a "sell" rating to a "hold" rating in a report on Sunday, June 21st. Barclays lowered their price objective on shares of Frontier Group from $7.00 to $5.00 and set an "underweight" rating on the stock in a research report on Friday, September 11th. Weiss Ratings cut shares of Frontier Group from a "sell (d)" rating to a "sell (d-)" rating in a research note on Thursday, July 30th. Finally, Zacks Research downgraded shares of Frontier Group from a "strong-buy" rating to a "hold" rating in a research report on Thursday, August 27th. Six research analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat, Frontier Group presently has an average rating of "Reduce" and a consensus price target of $6.29.

Frontier Group Trading Up 2.3%

NASDAQ ULCC opened at $6.25 on Wednesday. The company has a debt-to-equity ratio of 2.77, a quick ratio of 0.54 and a current ratio of 0.58. The firm has a market cap of $1.44 billion, a PE ratio of -3.72 and a beta of 2.64. Frontier Group has a one year low of $3.02 and a one year high of $8.40. The firm's fifty day moving average is $6.22 and its two-hundred day moving average is $5.66.

Frontier Group (NASDAQ:ULCC - Get Free Report) last announced its earnings results on Wednesday, July 29th. The company reported ($0.10) earnings per share for the quarter, topping the consensus estimate of ($0.47) by $0.37. The business had revenue of $1.28 billion during the quarter, compared to the consensus estimate of $1.22 billion. Frontier Group had a negative net margin of 9.29% and a negative return on equity of 35.54%. The business's quarterly revenue was up 37.7% compared to the same quarter last year. During the same quarter in the prior year, the firm earned ($0.31) earnings per share. 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. Analysts expect that Frontier Group will post -0.34 earnings per share for the current year.

Insiders Place Their Bets

In other news, CFO Mark Mitchell sold 125,000 shares of the firm's stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $8.09, for a total value of $1,011,250.00. Following the completion of the sale, the chief financial officer directly owned 53,785 shares of the company's stock, valued at $435,120.65. This trade represents a 69.92% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, SVP Alexandre Clerc sold 3,068 shares of the company's stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $8.17, for a total value of $25,065.56. Following the transaction, the senior vice president directly owned 37,488 shares in the company, valued at $306,276.96. This represents a 7.56% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 12,049,662 shares of company stock worth $87,026,452. Corporate insiders own 48.00% of the company's stock.

Hedge Funds Weigh In On Frontier Group

Institutional investors and hedge funds have recently made changes to their positions in the stock. Sequoia Financial Advisors LLC purchased a new stake in Frontier Group during the second quarter worth about $116,000. Engineers Gate Manager LP increased its holdings in Frontier Group by 21.0% in the second 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 in the last quarter. Integrated Wealth Concepts LLC purchased a new position in Frontier Group in the second quarter valued at about $28,000. Squarepoint Ops LLC lifted its position in shares of Frontier Group by 247.6% during the 2nd quarter. Squarepoint Ops LLC now owns 266,000 shares of the company's stock valued at $2,104,000 after acquiring an additional 189,469 shares during the period. Finally, AXQ Capital LP acquired a new stake in shares of Frontier Group during the 2nd quarter valued at approximately $470,000.

About Frontier Group

Frontier Group Holdings, Inc is the parent company of Frontier Airlines, an ultra-low-cost passenger airline headquartered in Denver, Colorado. Frontier Airlines operates a low-fare business model that separates base airfare from optional services, allowing customers to pay for add-ons such as checked baggage, seat selection, priority services and other travel options.

Frontier Airlines serves a broad network of destinations across the United States, as well as selected locations in Mexico, the Caribbean and Central America.

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