Bank of America Corp DE Makes New $30.12 Million Investment in Frontline PLC $FRO

Key Points

• Bank of America purchased 865,841 Frontline shares worth approximately $30.1 million, giving it a 0.39% stake. Other major investors, including BlackRock and Arrowstreet Capital, also increased their exposure, while institutions collectively own 22.7% of the company.
• Frontline reported quarterly revenue of $943.3 million, up 96.5% year over year, but missed earnings expectations with EPS of $2.61 versus the $2.74 consensus estimate.
• Frontline raised its quarterly dividend to $2.61 per share, equivalent to a $10.44 annualized payout and a 21.8% yield. Despite the dividend increase, analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $45.37.

Bank of America Corp DE purchased a new position in Frontline PLC (NYSE:FRO - Free Report) in the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund purchased 865,841 shares of the shipping company's stock, valued at approximately $30,123,000. Bank of America Corp DE owned about 0.39% of Frontline at the end of the most recent reporting period.

Several other large investors also recently made changes to their positions in FRO. Arrowstreet Capital Limited Partnership raised its position in shares of Frontline by 4,659.9% in the first quarter. Arrowstreet Capital Limited Partnership now owns 5,783,681 shares of the shipping company's stock valued at $202,080,000 after purchasing an additional 5,662,172 shares during the period. BlackRock Inc. bought a new stake in shares of Frontline during the 2nd quarter worth $50,846,000. Cooper Creek Partners Management LLC bought a new stake in shares of Frontline during the 1st quarter worth $26,911,000. Canada Pension Plan Investment Board acquired a new position in Frontline in the 2nd quarter valued at $22,849,000. Finally, Deutsche Bank AG bought a new position in Frontline in the 2nd quarter worth $20,969,000. Institutional investors own 22.70% of the company's stock.

Frontline Stock Down 3.8%

FRO stock opened at $47.93 on Wednesday. Frontline PLC has a twelve month low of $20.47 and a twelve month high of $54.91. The company has a quick ratio of 1.87, a current ratio of 1.87 and a debt-to-equity ratio of 0.69. The company has a market cap of $10.67 billion, a PE ratio of 7.19 and a beta of 0.05. The business's 50-day simple moving average is $42.94 and its 200 day simple moving average is $38.52.

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

Frontline Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 28th. Stockholders of record on Friday, September 18th will be given a dividend of $2.61 per share. This is an increase from Frontline's previous quarterly dividend of $1.55. The ex-dividend date is Friday, September 18th. This represents a $10.44 annualized dividend and a dividend yield of 21.8%. Frontline's dividend payout ratio (DPR) is presently 156.52%.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on the stock. Danske lowered shares of Frontline from a "hold" rating to a "sell" rating in a research report on Friday, August 21st. Nordea Equity Research cut Frontline to a "hold" rating in a research report on Monday, August 31st. Weiss Ratings upgraded Frontline from a "buy (b-)" rating to a "buy (b)" rating in a research note on Friday, August 28th. BTIG Research lifted their price target on Frontline from $55.00 to $70.00 and gave the stock a "buy" rating in a research report on Friday, September 18th. Finally, DZ Bank lowered Frontline from a "hold" rating to a "sell" rating in a report on Friday, August 21st. Four research analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $45.37.

Frontline Company Profile

Frontline plc is a maritime shipping company that owns and operates tankers engaged primarily in the transportation of crude oil and refined petroleum products. Its fleet has included very large crude carriers (VLCCs), Suezmax tankers and long-range product tankers, which transport energy commodities for oil companies, trading firms and other customers worldwide.

The company's vessels operate on international shipping routes, serving major oil-producing, refining and consuming regions.

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