Frontline PLC (FRO) - What Are Investment Firms Thinking About This Stock?

Key Points

• Analysts remain divided on Frontline: Eleven firms assign the stock a consensus “Hold” rating, with two sells, five holds and four buys. The average 12-month price target is $45.37, below the reported share price of $52.90.
• Institutional ownership increased, including major purchases and stake increases by Arrowstreet Capital, BlackRock, Renaissance Technologies, Bank of America and Amundi; institutions collectively own 22.7% of the company.
• Frontline reported strong operating momentum, with revenue rising 96.5% year over year to $943.3 million and a 49.47% net margin, although quarterly EPS of $2.61 missed estimates. The company raised its quarterly dividend to $2.61, implying a 19.7% annualized yield, but a payout ratio above 156% highlights its dependence on earnings conditions.

Frontline PLC (NYSE:FRO - Get Free Report) has been assigned a consensus recommendation of "Hold" from the eleven research firms that are presently covering the company, MarketBeat reports. Two equities research analysts have rated the stock with a sell recommendation, five have given a hold recommendation and four have assigned a buy recommendation to the company. The average twelve-month price objective among brokerages that have issued ratings on the stock in the last year is $45.37.

Several analysts recently commented on FRO shares. Nordea Equity Research downgraded shares of Frontline to a "hold" rating in a research report on Monday, August 31st. BTIG Research lifted their target price on shares of Frontline from $55.00 to $70.00 and gave the stock a "buy" rating in a report on Friday, September 18th. Wall Street Zen upgraded shares of Frontline from a "buy" rating to a "strong-buy" rating in a research note on Saturday, August 29th. DZ Bank downgraded shares of Frontline from a "hold" rating to a "sell" rating in a research note on Friday, August 21st. Finally, Danske cut shares of Frontline from a "hold" rating to a "sell" rating in a report on Friday, August 21st.

Hedge Funds Weigh In On Frontline

Several hedge funds and other institutional investors have recently added to or reduced their stakes in FRO. Arrowstreet Capital Limited Partnership increased its holdings in shares of Frontline by 4,659.9% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 5,783,681 shares of the shipping company's stock worth $202,080,000 after purchasing an additional 5,662,172 shares in the last quarter. BlackRock Inc. purchased a new position in shares of Frontline in the second quarter worth $50,846,000. Renaissance Technologies LLC raised its stake in shares of Frontline by 133.5% in the first quarter. Renaissance Technologies LLC now owns 927,838 shares of the shipping company's stock worth $32,344,000 after purchasing an additional 530,500 shares during the last quarter. Bank of America Corp DE bought a new position in shares of Frontline during the second quarter valued at $30,123,000. Finally, Amundi lifted its holdings in shares of Frontline by 162.6% during the second quarter. Amundi now owns 847,488 shares of the shipping company's stock valued at $29,809,000 after purchasing an additional 524,804 shares in the last quarter. 22.70% of the stock is owned by institutional investors.

Frontline Trading Up 3.3%

NYSE FRO opened at $52.90 on Friday. Frontline has a 12 month low of $20.47 and a 12 month high of $59.75. The stock has a market cap of $11.78 billion, a P/E ratio of 7.93 and a beta of 0.15. The stock's fifty day moving average price is $49.15 and its 200-day moving average price is $41.47. The company has a current ratio of 1.87, a quick ratio of 1.87 and a debt-to-equity ratio of 0.69.

Frontline (NYSE:FRO - Get Free Report) last issued its quarterly earnings results on Friday, August 28th. The shipping company reported $2.61 earnings per share for the quarter, missing the consensus estimate of $2.74 by ($0.13). The company had revenue of $943.30 million for the quarter, compared to the consensus estimate of $758.89 million. Frontline had a net margin of 49.47% and a return on equity of 44.24%. Frontline's revenue was up 96.5% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.36 earnings per share.

Frontline Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, September 28th. Investors of record on Friday, September 18th were issued a $2.61 dividend. This represents a $10.44 dividend on an annualized basis and a yield of 19.7%. The ex-dividend date was Friday, September 18th. This is an increase from Frontline's previous quarterly dividend of $1.55. Frontline's dividend payout ratio (DPR) is presently 156.52%.

Frontline Company Profile

Frontline plc is a maritime shipping company that owns and operates tankers used to transport crude oil and refined petroleum products worldwide. The company's fleet includes very large crude carriers (VLCCs), Suezmax tankers, and Aframax and Long Range 2 (LR2) vessels, serving international energy markets.

Frontline's vessels are employed through a combination of voyage charters, time charters and pool arrangements. Its operations connect major oil-producing regions with refineries and consuming markets across the Atlantic, Pacific and other global trade routes.

Founded in 1985, Frontline is incorporated in Bermuda and has corporate operations based in Limassol, Cyprus.

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