Frontier Group Holdings, Inc. (NASDAQ:ULCC) Given Average Rating of "Reduce" by Brokerages

Key Points

• Frontier Group has a consensus “Reduce” rating from nine analysts: three recommend selling and six recommend holding. The average 12-month price target is $6.57.
• Recent quarterly results exceeded expectations, with adjusted EPS of -$0.10 versus the -$0.47 consensus estimate and revenue of $1.28 billion, up 37.7% year over year.
• Insiders sold more than 12 million shares worth approximately $87 million over the past 90 days, including a 34% reduction in a major shareholder’s position.

Shares of Frontier Group Holdings, Inc. (NASDAQ:ULCC - Get Free Report) have been assigned a consensus rating of "Reduce" from the nine ratings firms that are currently covering the firm, Marketbeat reports. Three investment analysts have rated the stock with a sell recommendation and six have issued a hold recommendation on the company. The average 1-year target price among brokerages that have updated their coverage on the stock in the last year is $6.5714.

ULCC has been the topic of a number of recent research reports. Weiss Ratings lowered Frontier Group from a "sell (d)" rating to a "sell (d-)" rating in a report on Thursday, July 30th. Citigroup lifted their price objective on shares of Frontier Group from $5.00 to $9.00 and gave the company a "neutral" rating in a research report on Friday, June 26th. Zacks Research cut shares of Frontier Group from a "strong-buy" rating to a "hold" rating in a research note on Thursday, August 27th. Wall Street Zen upgraded shares of Frontier Group from a "sell" rating to a "hold" rating in a research note on Sunday, June 21st. Finally, Susquehanna raised their target price on shares of Frontier Group from $4.50 to $7.00 and gave the stock a "neutral" rating in a research note on Tuesday, July 7th.

Insider Activity

In related news, SVP Steve Schuller sold 10,000 shares of the firm's stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $7.55, for a total value of $75,500.00. Following the completion of the sale, the senior vice president owned 87,175 shares in the company, valued at $658,171.25. This trade represents a 10.29% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, major shareholder Group Holdings - Frontier Llc sold 11,700,000 shares of Frontier Group stock in a transaction that occurred on Thursday, July 9th. The shares were sold at an average price of $7.20, for a total value of $84,240,000.00. Following the completion of the sale, the insider directly owned 22,706,526 shares in the company, valued at $163,486,987.20. This represents a 34.01% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 12,049,662 shares of company stock valued at $87,026,452 over the last ninety days. 48.00% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the business. Sequoia Financial Advisors LLC acquired a new position in shares of Frontier Group during the 2nd quarter worth $116,000. Engineers Gate Manager LP lifted its stake in shares of 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 purchasing an additional 32,082 shares during the period. Integrated Wealth Concepts LLC acquired a new stake in shares of Frontier Group in the second quarter valued at about $28,000. Squarepoint Ops LLC boosted its holdings in Frontier Group by 247.6% during the second quarter. Squarepoint Ops LLC now owns 266,000 shares of the company's stock worth $2,104,000 after buying an additional 189,469 shares in the last quarter. Finally, AXQ Capital LP purchased a new stake in Frontier Group during the second quarter worth about $470,000.

Frontier Group Price Performance

Shares of NASDAQ:ULCC opened at $6.12 on Tuesday. Frontier Group has a one year low of $3.02 and a one year high of $8.40. The stock has a market capitalization of $1.41 billion, a price-to-earnings ratio of -3.64 and a beta of 2.57. The company has a 50-day simple moving average of $6.24 and a 200-day simple moving average of $5.46. 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 released its quarterly earnings results on Wednesday, July 29th. The company reported ($0.10) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.47) by $0.37. Frontier Group had a negative return on equity of 35.54% and a negative net margin of 9.29%.The firm had revenue of $1.28 billion for the quarter, compared to analyst estimates of $1.22 billion. During the same quarter last year, the company posted ($0.31) earnings per share. The business's revenue was up 37.7% on a year-over-year basis. 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. On average, analysts predict that Frontier Group will post -0.34 EPS for the current year.

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 scheduled air transportation services, primarily connecting destinations across the United States with cities in Mexico, the Caribbean and Central America.

Frontier's business model emphasizes low base fares and optional services. Customers can purchase additional products such as checked and carry-on baggage, advance seat assignments, priority services and other travel-related options.

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