Frontier Group Holdings, Inc. (NASDAQ:ULCC) Receives Consensus Recommendation of "Reduce" from Brokerages

Key Points

• Analyst sentiment is bearish: Nine brokerages give Frontier Group a consensus “Reduce” rating, with three sells, five holds and one strong buy. The average 12-month price target is $6.86.
• Frontier reported better-than-expected quarterly results: The company posted an adjusted loss of $0.10 per share versus expectations of a $0.47 loss, while revenue rose 37.7% year over year to $1.28 billion.
• Insiders have been selling heavily: Executives recently sold shares, and insiders have sold approximately 12.1 million shares worth $87.1 million over the past quarter, while retaining 48% ownership of the company.

Shares of Frontier Group Holdings, Inc. (NASDAQ:ULCC - Get Free Report) have received an average recommendation of "Reduce" from the nine brokerages that are presently covering the firm, MarketBeat Ratings reports. Three investment analysts have rated the stock with a sell recommendation, five have given a hold recommendation and one has given a strong buy recommendation to the company. The average 1 year price target among brokerages that have updated their coverage on the stock in the last year is $6.8571.

Several equities analysts recently issued reports on the company. Citigroup boosted their price target on Frontier Group from $5.00 to $9.00 and gave the company a "neutral" rating in a research note on Friday, June 26th. Wall Street Zen raised Frontier Group from a "sell" rating to a "hold" rating in a report on Sunday, June 21st. Barclays boosted their price objective on Frontier Group from $4.00 to $7.00 and gave the company an "underweight" rating in a research report on Thursday, June 25th. Zacks Research upgraded Frontier Group from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, July 29th. Finally, Susquehanna raised their price objective on shares of Frontier Group from $4.50 to $7.00 and gave the stock a "neutral" rating in a report on Tuesday, July 7th.

Insiders Place Their Bets

In other Frontier Group news, SVP Steve Schuller sold 10,000 shares of Frontier Group stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $7.55, for a total transaction of $75,500.00. Following the completion of the transaction, the senior vice president directly owned 87,175 shares of the company's stock, valued at approximately $658,171.25. This trade represents a 10.29% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Howard Diamond sold 24,195 shares of the business's stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $8.25, for a total transaction of $199,608.75. Following the completion of the sale, the executive vice president owned 133,126 shares in the company, valued at $1,098,289.50. This represents a 15.38% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 12,053,742 shares of company stock worth $87,051,587 over the last quarter. Corporate insiders own 48.00% of the company's stock.

Institutional Investors Weigh In On Frontier Group

Several large investors have recently made changes to their positions in the company. Allworth Financial LP bought a new position in Frontier Group during the 2nd quarter valued at about $43,000. Legal & General Group Plc acquired a new stake in shares of Frontier Group during the second quarter worth approximately $46,000. Caitong International Asset Management Co. Ltd bought a new position in shares of Frontier Group in the third quarter valued at approximately $27,000. Quarry LP bought a new position in shares of Frontier Group in the fourth quarter valued at approximately $34,000. Finally, Atlas Wealth LLC acquired a new position in shares of Frontier Group in the 1st quarter worth approximately $33,000.

Frontier Group Trading Down 1.0%

Shares of ULCC stock opened at $5.91 on Friday. The firm has a market capitalization of $1.36 billion, a P/E ratio of -3.52 and a beta of 2.59. Frontier Group has a 1 year low of $3.02 and a 1 year high of $8.40. The firm's fifty day simple moving average is $6.82 and its 200 day simple moving average is $5.38. The company has a current ratio of 0.58, a quick ratio of 0.54 and a debt-to-equity ratio of 2.77.

Frontier Group (NASDAQ:ULCC - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The company reported ($0.10) earnings per share 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 firm had revenue of $1.28 billion during the quarter, compared to the consensus estimate of $1.22 billion. During the same period in the prior year, the firm earned ($0.31) EPS. 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. As a group, sell-side analysts predict that Frontier Group will post -0.34 EPS for the current year.

Frontier Group Company Profile

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.

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