Frontline PLC (NYSE:FRO) Receives Average Recommendation of "Hold" from Brokerages

Key Points

• Frontline has a consensus “Hold” rating from 11 analysts: five holds, four buys and two sells. The average 12-month price target is $45.37, below the stock’s reported $48.95 price.
• Frontline reported quarterly revenue of $943.3 million, up 96.5% year over year and above estimates, but EPS of $2.61 fell short of the $2.74 consensus.
• The company raised its quarterly dividend to $2.61 per share, implying a $10.44 annualized payout and a 21.3% yield, although its payout ratio stands at 156.52%.

Frontline PLC (NYSE:FRO - Get Free Report) has earned an average recommendation of "Hold" from the eleven ratings firms that are covering the stock, Marketbeat.com reports. Two equities research analysts have rated the stock with a sell rating, five have assigned a hold rating and four have assigned a buy rating to the company. The average 1 year target price among brokerages that have issued a report on the stock in the last year is $45.37.

A number of research analysts have recently weighed in on the company. Danske cut Frontline from a "hold" rating to a "sell" rating in a research report on Friday, August 21st. BTIG Research boosted their price objective on shares of Frontline from $55.00 to $70.00 and gave the stock a "buy" rating in a research report on Friday, September 18th. Weiss Ratings raised shares of Frontline from a "buy (b-)" rating to a "buy (b)" rating in a research note on Friday, August 28th. DZ Bank cut shares of Frontline from a "hold" rating to a "sell" rating in a research report on Friday, August 21st. Finally, Nordea Equity Research downgraded shares of Frontline to a "hold" rating in a report on Monday, August 31st.

Institutional Investors Weigh In On Frontline

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Arrowstreet Capital Limited Partnership increased its position in Frontline by 4,659.9% during the first quarter. Arrowstreet Capital Limited Partnership now owns 5,783,681 shares of the shipping company's stock worth $202,080,000 after buying an additional 5,662,172 shares in the last quarter. BlackRock Inc. acquired a new stake in shares of Frontline during the second quarter valued at $50,846,000. Renaissance Technologies LLC boosted its stake in shares of Frontline by 133.5% during the first quarter. Renaissance Technologies LLC now owns 927,838 shares of the shipping company's stock valued at $32,344,000 after acquiring an additional 530,500 shares during the last quarter. Bank of America Corp DE acquired a new stake in shares of Frontline during the second quarter valued at $30,123,000. Finally, Amundi increased its position in Frontline by 162.6% during the 2nd quarter. Amundi now owns 847,488 shares of the shipping company's stock worth $29,809,000 after purchasing an additional 524,804 shares in the last quarter. Hedge funds and other institutional investors own 22.70% of the company's stock.

Frontline Stock Performance

FRO opened at $48.95 on Wednesday. The stock has a market cap of $10.90 billion, a P/E ratio of 7.34 and a beta of 0.05. The company has a debt-to-equity ratio of 0.69, a current ratio of 1.87 and a quick ratio of 1.87. The stock's 50 day simple moving average is $44.00 and its 200 day simple moving average is $38.99. Frontline has a 1-year low of $20.47 and a 1-year high of $54.91.

Frontline (NYSE:FRO - Get Free Report) last issued its quarterly earnings data 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 firm had revenue of $943.30 million for the quarter, compared to analyst estimates of $758.89 million. Frontline had a return on equity of 44.24% and a net margin of 49.47%.The business's revenue for the quarter was up 96.5% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.36 earnings per share.

Frontline Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, September 28th. Investors of record on Friday, September 18th were given a dividend of $2.61 per share. The ex-dividend date was Friday, September 18th. This represents a $10.44 annualized dividend and a dividend yield of 21.3%. This is an increase from Frontline's previous quarterly dividend of $1.55. Frontline's payout ratio is presently 156.52%.

About Frontline

Frontline plc NYSE: FRO is a maritime transportation company that owns and operates a fleet of crude oil and refined petroleum product tankers. Its vessels transport energy commodities for oil companies, commodity traders, refineries and other customers in international markets.

The company's fleet primarily includes very large crude carriers (VLCCs), Suezmax tankers and Aframax or LR2 tankers. Frontline generally employs its vessels through a combination of voyage charters, time charters and commercial pool arrangements, allowing it to serve major global shipping routes and connect oil-producing regions with refineries and consuming markets.

Frontline has roots in the Norwegian shipping industry and is associated with shipping entrepreneur John Fredriksen.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.