Wall Street Zen Upgrades Frontline (NYSE:FRO) to "Strong-Buy"

Key Points

• Wall Street Zen upgraded Frontline to “strong-buy”, although broader analyst sentiment remains mixed: MarketBeat’s consensus rating is “Hold” with a $41.62 price target.
• Frontline reported stronger-than-expected quarterly results, posting $2.96 EPS versus $2.74 expected and $943.3 million in revenue, up 96.5% year over year.
• The stock opened at $44.02, near its 52-week high of $45.29, with a $9.8 billion market capitalization; institutional investors own 22.7% of outstanding shares.

Frontline (NYSE:FRO - Get Free Report) was upgraded by investment analysts at Wall Street Zen from a "buy" rating to a "strong-buy" rating in a research note issued on Saturday.

A number of other equities research analysts also recently issued reports on FRO. Danske downgraded shares of Frontline from a "hold" rating to a "sell" rating in a report on Friday, August 21st. BTIG Research increased their target price on Frontline from $45.00 to $55.00 and gave the stock a "buy" rating in a research report on Wednesday, June 24th. DZ Bank lowered Frontline from a "hold" rating to a "sell" rating in a research note on Friday, August 21st. Weiss Ratings downgraded Frontline from a "buy (b)" rating to a "buy (b-)" rating in a report on Wednesday, August 12th. Finally, Pareto Securities cut Frontline from a "buy" rating to a "hold" rating and set a $39.46 target price for the company. in a report on Monday, May 25th. Four investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $41.62.

Frontline Stock Performance

Frontline stock opened at $44.02 on Friday. The stock has a fifty day moving average price of $39.32 and a 200 day moving average price of $36.77. Frontline has a 52 week low of $20.31 and a 52 week high of $45.29. The firm has a market capitalization of $9.80 billion, a P/E ratio of 10.84 and a beta of 0.02. The company has a current ratio of 2.03, a quick ratio of 2.03 and a debt-to-equity ratio of 0.83.

Frontline (NYSE:FRO - Get Free Report) last issued its quarterly earnings results on Friday, August 28th. The shipping company reported $2.96 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.74 by $0.22. Frontline had a return on equity of 27.80% and a net margin of 36.70%.The firm had revenue of $943.30 million for the quarter, compared to analyst estimates of $758.85 million. During the same period last year, the company earned $0.36 EPS. The firm's quarterly revenue was up 96.5% on a year-over-year basis.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. University of Texas Texas AM Investment Management Co. acquired a new stake in shares of Frontline in the fourth quarter valued at about $25,000. Fiduciary Financial Advisors purchased a new position in Frontline in the 2nd quarter worth approximately $28,000. Assetmark Inc. grew its position in Frontline by 278.6% in the first quarter. Assetmark Inc. now owns 973 shares of the shipping company's stock valued at $34,000 after acquiring an additional 716 shares in the last quarter. Sunbelt Securities Inc. purchased a new stake in shares of Frontline during the third quarter valued at approximately $41,000. Finally, Parallel Advisors LLC lifted its position in shares of Frontline by 58.9% during the first quarter. Parallel Advisors LLC now owns 1,311 shares of the shipping company's stock worth $46,000 after purchasing an additional 486 shares in the last quarter. 22.70% of the stock is owned by hedge funds and other institutional investors.

Frontline Company Profile

Frontline Ltd. NYSE: FRO is a leading global shipping company specializing in the seaborne transportation of crude oil and petroleum products. The company's core business activities encompass the ownership and operation of very large crude carriers (VLCCs), Suezmax tankers and Aframax vessels. Through long-term charters, spot market operations and time charters, Frontline provides flexible shipping solutions that cater to a diverse set of energy producers, refiners and trading houses worldwide.

Frontline's fleet is geared toward high-capacity, ocean-going tankers capable of carrying large volumes of crude oil over intercontinental distances.

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