American Century Companies Inc. Grows Stake in Frontier Group Holdings, Inc. $ULCC

Key Points

• American Century Companies Inc. significantly increased its stake in Frontier Group Holdings by 1,353.6%, acquiring a total of 774,988 shares worth approximately $3.36 million.
• Frontier Group Holdings announced disappointing earnings, reporting a loss of ($0.31) EPS and revenues of $929 million, missing consensus estimates.
• Several analysts downgraded their target prices for Frontier Group, with Morgan Stanley lowering it from $10.00 to $9.00, indicating a cautious outlook on the stock with a consensus rating of "Hold".

American Century Companies Inc. lifted its holdings in Frontier Group Holdings, Inc. (NASDAQ:ULCC - Free Report) by 1,353.6% during the first quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 774,988 shares of the company's stock after buying an additional 721,674 shares during the period. American Century Companies Inc. owned approximately 0.34% of Frontier Group worth $3,363,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently modified their holdings of ULCC. Voloridge Investment Management LLC boosted its stake in shares of Frontier Group by 835.6% in the 4th quarter. Voloridge Investment Management LLC now owns 1,702,008 shares of the company's stock worth $12,101,000 after buying an additional 1,520,094 shares during the last quarter. Two Sigma Investments LP boosted its stake in shares of Frontier Group by 488.9% in the 4th quarter. Two Sigma Investments LP now owns 980,426 shares of the company's stock worth $6,971,000 after buying an additional 813,929 shares during the last quarter. Empyrean Capital Partners LP purchased a new position in shares of Frontier Group in the 4th quarter worth approximately $4,977,000. Balyasny Asset Management L.P. boosted its stake in shares of Frontier Group by 31.8% in the 4th quarter. Balyasny Asset Management L.P. now owns 2,396,885 shares of the company's stock worth $17,042,000 after buying an additional 578,151 shares during the last quarter. Finally, Deutsche Bank AG boosted its stake in shares of Frontier Group by 2,201.8% in the 1st quarter. Deutsche Bank AG now owns 585,888 shares of the company's stock worth $2,543,000 after buying an additional 560,434 shares during the last quarter.

Analyst Ratings Changes

ULCC has been the topic of a number of research reports. Bank of America lowered their price target on shares of Frontier Group from $4.75 to $4.00 and set a "neutral" rating on the stock in a report on Tuesday, July 1st. Morgan Stanley lowered their price target on shares of Frontier Group from $10.00 to $9.00 and set an "equal weight" rating on the stock in a report on Monday, May 19th. UBS Group lowered their price target on shares of Frontier Group from $4.00 to $3.50 and set a "neutral" rating on the stock in a report on Wednesday, August 6th. Finally, Deutsche Bank Aktiengesellschaft raised shares of Frontier Group from a "hold" rating to a "buy" rating and lifted their price target for the stock from $4.00 to $8.00 in a report on Tuesday. Two analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $5.61.

Frontier Group Stock Performance

ULCC stock traded down $0.29 during midday trading on Thursday, reaching $5.30. 3,317,281 shares of the company's stock traded hands, compared to its average volume of 3,836,836. The company has a 50-day moving average price of $4.25 and a two-hundred day moving average price of $4.49. The company has a debt-to-equity ratio of 0.53, a quick ratio of 0.36 and a current ratio of 0.41. Frontier Group Holdings, Inc. has a 52 week low of $2.89 and a 52 week high of $10.26. The firm has a market capitalization of $1.21 billion, a PE ratio of -33.03 and a beta of 2.63.

Frontier Group (NASDAQ:ULCC - Get Free Report) last issued its earnings results on Tuesday, August 5th. The company reported ($0.31) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.28) by ($0.03). Frontier Group had a negative net margin of 0.87% and a negative return on equity of 12.56%. The business had revenue of $929.00 million for the quarter, compared to the consensus estimate of $951.92 million. During the same period in the previous year, the firm earned $0.14 EPS. The company's revenue was down 4.5% compared to the same quarter last year. Frontier Group has set its Q3 2025 guidance at -0.420--0.260 EPS. As a group, equities analysts anticipate that Frontier Group Holdings, Inc. will post 0.91 EPS for the current year.

About Frontier Group

Frontier Group Holdings, Inc, provides low-fare passenger airline services to leisure travelers in the United States and Latin America. The company sells its products through direct distribution channels, including its website, mobile app, and contact centers. As of December 31, 2023, it had a fleet of 136 Airbus single-aisle aircrafts.