298,073 Shares in Frontline PLC $FRO Bought by Legal & General Group Plc

Key Points

• Legal & General Group purchased 298,073 Frontline shares worth approximately $10.4 million, joining other institutional investors that have increased their positions. Institutions now own 22.7% of Frontline.
• Frontline reported strong quarterly results, with EPS of $2.96 surpassing estimates and revenue rising 96.5% year over year to $943.3 million.
• The company raised its quarterly dividend to $2.61 per share, implying an annualized dividend of $10.44 and a yield of 23.9%. Analysts remain mixed, with an overall “Hold” rating and an average price target of $41.62.

Legal & General Group Plc purchased a new stake in shares of Frontline PLC (NYSE:FRO - Free Report) in the second quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor purchased 298,073 shares of the shipping company's stock, valued at approximately $10,355,000. Legal & General Group Plc owned about 0.13% of Frontline as of its most recent SEC filing.

Several other institutional investors have also added to or reduced their stakes in the company. Royal Bank of Canada grew its holdings in Frontline by 32.3% in the 1st quarter. Royal Bank of Canada now owns 26,342 shares of the shipping company's stock worth $392,000 after acquiring an additional 6,424 shares during the last quarter. Millennium Management LLC bought a new position in shares of Frontline during the first quarter valued at about $7,587,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in shares of Frontline by 12.4% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 185,226 shares of the shipping company's stock valued at $2,751,000 after acquiring an additional 20,370 shares during the last quarter. American Century Companies Inc. boosted its holdings in shares of Frontline by 93.6% during the second quarter. American Century Companies Inc. now owns 72,539 shares of the shipping company's stock worth $1,190,000 after purchasing an additional 35,078 shares during the period. Finally, Invesco Ltd. boosted its holdings in shares of Frontline by 215.8% during the second quarter. Invesco Ltd. now owns 91,039 shares of the shipping company's stock worth $1,494,000 after purchasing an additional 62,210 shares during the period. Hedge funds and other institutional investors own 22.70% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on the company. Wall Street Zen raised Frontline from a "buy" rating to a "strong-buy" rating in a research note on Saturday. Pareto Securities cut Frontline from a "buy" rating to a "hold" rating and set a $39.46 price objective for the company. in a report on Monday, May 25th. Danske lowered Frontline from a "hold" rating to a "sell" rating in a research report on Friday, August 21st. Weiss Ratings raised Frontline from a "buy (b-)" rating to a "buy (b)" rating in a research note on Friday. Finally, Nordea Equity Research downgraded Frontline to a "hold" rating in a report on Monday. Four research analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average price target of $41.62.

Frontline Trading Down 1.0%

NYSE:FRO opened at $43.73 on Tuesday. The company has a 50-day moving average price of $39.36 and a 200-day moving average price of $36.93. The stock has a market cap of $9.74 billion, a price-to-earnings ratio of 10.77 and a beta of 0.02. The company has a current ratio of 2.03, a quick ratio of 2.03 and a debt-to-equity ratio of 0.83. Frontline PLC has a 12 month low of $20.31 and a 12 month high of $45.29.

Frontline (NYSE:FRO - Get Free Report) last announced its quarterly earnings results on Friday, August 28th. The shipping company reported $2.96 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.74 by $0.22. Frontline had a net margin of 36.70% and a return on equity of 27.80%. The company had revenue of $943.30 million for the quarter, compared to analysts' expectations of $758.85 million. During the same quarter in the previous year, the company earned $0.36 earnings per share. Frontline's quarterly revenue was up 96.5% on a year-over-year basis.

Frontline Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, September 28th. Shareholders of record on Friday, September 18th will be issued a dividend of $2.61 per share. This is a positive change from Frontline's previous quarterly dividend of $1.55. The ex-dividend date is Friday, September 18th. This represents a $10.44 dividend on an annualized basis and a dividend yield of 23.9%. Frontline's dividend payout ratio (DPR) is currently 152.71%.

Frontline 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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