Frontline PLC (NYSE:FRO) Given Consensus Recommendation of "Hold" by Brokerages

Key Points

• Frontline has a consensus “Hold” rating from 11 brokerages: five holds, four buys and two sells. The average 12-month price target is $41.62.
• Frontline reported quarterly EPS of $2.61, below the $2.74 consensus estimate, while revenue surged 96.5% year over year to $943.3 million, exceeding expectations.
• The company raised its quarterly dividend to $2.61, equating to an annualized payout of $10.44 and a yield of approximately 22.6%.

Frontline PLC (NYSE:FRO - Get Free Report) has earned a consensus rating of "Hold" from the eleven research firms that are covering the stock, MarketBeat.com reports. Two analysts have rated the stock with a sell rating, five have assigned a hold rating and four have given a buy rating to the company. The average 1 year target price among brokerages that have updated their coverage on the stock in the last year is $41.6150.

Several analysts recently weighed in on FRO shares. DZ Bank lowered shares of Frontline from a "hold" rating to a "sell" rating in a research note on Friday, August 21st. BTIG Research increased their price objective on Frontline from $45.00 to $55.00 and gave the stock a "buy" rating in a report on Wednesday, June 24th. Nordea Equity Research cut Frontline to a "hold" rating in a research report on Monday. Danske downgraded Frontline from a "hold" rating to a "sell" rating in a research note on Friday, August 21st. Finally, Wall Street Zen raised Frontline from a "buy" rating to a "strong-buy" rating in a research note on Saturday, August 29th.

Frontline Stock Up 1.6%

NYSE:FRO opened at $46.13 on Friday. The company has a current ratio of 1.87, a quick ratio of 2.03 and a debt-to-equity ratio of 0.69. The stock has a 50 day moving average of $39.84 and a 200-day moving average of $37.30. The firm has a market capitalization of $10.27 billion, a PE ratio of 6.92 and a beta of 0.05. Frontline has a 52 week low of $20.47 and a 52 week high of $47.04.

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

Frontline Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, September 28th. Investors of record on Friday, September 18th will be issued a $2.61 dividend. The ex-dividend date of this dividend is Friday, September 18th. This is an increase from Frontline's previous quarterly dividend of $1.55. This represents a $10.44 annualized dividend and a yield of 22.6%. Frontline's dividend payout ratio is currently 92.95%.

Hedge Funds Weigh In On Frontline

Institutional investors and hedge funds have recently bought and sold shares of the stock. Cozad Asset Management Inc. raised its position in shares of Frontline by 3.5% during the 1st quarter. Cozad Asset Management Inc. now owns 13,152 shares of the shipping company's stock worth $458,000 after buying an additional 445 shares in the last quarter. Bank of Montreal Can boosted its holdings in shares of Frontline by 0.6% in the fourth quarter. Bank of Montreal Can now owns 73,544 shares of the shipping company's stock valued at $1,605,000 after acquiring an additional 460 shares in the last quarter. Parallel Advisors LLC boosted its holdings in shares of Frontline by 58.9% in the first quarter. Parallel Advisors LLC now owns 1,311 shares of the shipping company's stock valued at $46,000 after acquiring an additional 486 shares in the last quarter. NFSG Corp increased its stake in shares of Frontline by 50.0% during the first quarter. NFSG Corp now owns 1,500 shares of the shipping company's stock valued at $52,000 after acquiring an additional 500 shares during the period. Finally, Integrated Wealth Concepts LLC increased its stake in shares of Frontline by 3.5% during the third quarter. Integrated Wealth Concepts LLC now owns 16,204 shares of the shipping company's stock valued at $369,000 after acquiring an additional 552 shares during the period. Institutional investors own 22.70% of the company's stock.

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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