Bank of America Corp DE Makes New $7.34 Million Investment in Frontier Group Holdings, Inc. $ULCC

Key Points

• Bank of America acquired 927,535 Frontier Group shares worth approximately $7.34 million during the second quarter, representing about 0.40% of the company. Several other institutional investors also increased or initiated positions.
• Analyst sentiment remains cautious: six analysts rate ULCC “Hold” and three rate it “Sell,” producing a consensus “Reduce” rating and an average price target of $6.43.
• Frontier reported better-than-expected quarterly results, with revenue rising 37.7% year over year to $1.28 billion and a loss of $0.10 per share versus estimates of a $0.47 loss. However, insiders sold more than 12 million shares worth roughly $87 million over the past three months.

Bank of America Corp DE acquired a new position in Frontier Group Holdings, Inc. (NASDAQ:ULCC - Free Report) during the second quarter, according to the company in its most recent filing with the SEC. The fund acquired 927,535 shares of the company's stock, valued at approximately $7,337,000. Bank of America Corp DE owned approximately 0.40% of Frontier Group at the end of the most recent reporting period.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the company. U S Global Investors Inc. boosted its holdings in Frontier Group by 63.9% in the first quarter. U S Global Investors Inc. now owns 6,781,412 shares of the company's stock valued at $23,938,000 after purchasing an additional 2,643,448 shares during the last quarter. BlackRock Inc. purchased a new stake in Frontier Group during the 2nd quarter worth approximately $47,205,000. First Trust Advisors LP raised its position in shares of Frontier Group by 65.7% in the 1st quarter. First Trust Advisors LP now owns 1,179,019 shares of the company's stock valued at $4,162,000 after purchasing an additional 467,638 shares in the last quarter. Mountaineer Partners Management LLC acquired a new position in shares of Frontier Group in the 4th quarter valued at approximately $4,490,000. Finally, GSA Capital Partners LLP purchased a new position in shares of Frontier Group during the 2nd quarter valued at approximately $4,373,000.

Wall Street Analyst Weigh In

A number of analysts recently issued reports on ULCC shares. Citigroup lifted their price target on shares of Frontier Group from $5.00 to $9.00 and gave the stock a "neutral" rating in a research note on Friday, June 26th. Barclays reduced their price objective on shares of Frontier Group from $7.00 to $5.00 and set an "underweight" rating on the stock in a research note on Friday, September 11th. Wall Street Zen raised shares of Frontier Group from a "sell" rating to a "hold" rating in a report on Sunday, June 21st. Susquehanna upped their target price on shares of Frontier Group from $4.50 to $7.00 and gave the company a "neutral" rating in a research note on Tuesday, July 7th. Finally, UBS Group reduced their price target on shares of Frontier Group from $7.00 to $6.00 and set a "neutral" rating on the stock in a research report on Thursday. Six investment analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of "Reduce" and a consensus target price of $6.43.

Insiders Place Their Bets

In related news, CFO Mark Mitchell sold 125,000 shares of the stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $8.09, for a total transaction of $1,011,250.00. Following the sale, the chief financial officer owned 53,785 shares in the company, valued at $435,120.65. This represents a 69.92% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, major shareholder Group Holdings - Frontier Llc sold 11,700,000 shares of the stock in a transaction dated Thursday, July 9th. The stock was sold at an average price of $7.20, for a total transaction of $84,240,000.00. Following the sale, the insider owned 22,706,526 shares in the company, valued at approximately $163,486,987.20. This trade represents a 34.01% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 12,049,662 shares of company stock worth $87,026,452. Corporate insiders own 48.00% of the company's stock.

Frontier Group Stock Performance

ULCC stock opened at $6.19 on Monday. The stock's 50 day simple moving average is $6.20 and its 200 day simple moving average is $5.52. Frontier Group Holdings, Inc. has a 12-month low of $3.02 and a 12-month high of $8.40. The firm has a market cap of $1.43 billion, a P/E ratio of -3.68 and a beta of 2.57. The company has a current ratio of 0.58, a quick ratio of 0.54 and a debt-to-equity ratio of 2.77.

Frontier Group (NASDAQ:ULCC - Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The company reported ($0.10) EPS for the quarter, topping analysts' consensus estimates of ($0.47) by $0.37. Frontier Group had a negative net margin of 9.29% and a negative return on equity of 35.54%. The firm had revenue of $1.28 billion during the quarter, compared to the consensus estimate of $1.22 billion. During the same quarter in the previous year, the company posted ($0.31) earnings per share. The firm's revenue was up 37.7% on a year-over-year basis. Frontier Group has set its Q4 2026 guidance at 0.000-0.200 EPS and its Q3 2026 guidance at -0.100-0.100 EPS. As a group, equities research analysts predict that Frontier Group Holdings, Inc. will post -0.34 EPS for the current year.

Frontier Group Company Profile

Frontier Group Holdings, Inc is the parent company of Frontier Airlines, an ultra-low-cost passenger airline headquartered in Denver, Colorado. Frontier Airlines operates scheduled air transportation services, primarily connecting destinations across the United States with cities in Mexico, the Caribbean and Central America.

Frontier's business model emphasizes low base fares and optional services. Customers can purchase additional products such as checked and carry-on baggage, advance seat assignments, priority services and other travel-related options.

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