Bank of New York Mellon Corp Invests $10.65 Million in Frontline PLC $FRO

Key Points

• Bank of New York Mellon acquired 306,152 Frontline shares worth approximately $10.65 million, giving it a 0.14% stake. Institutional investors collectively own 22.70% of the tanker company.
• Frontline reported strong quarterly growth, with revenue up 96.5% year over year to $943.3 million and net margin of 49.47%, although EPS of $2.61 fell short of analyst estimates.
• The company raised its quarterly dividend to $2.61 per share, implying an annualized payout of $10.44 and a 23.0% yield. Despite the income appeal, analysts’ consensus rating remains “Hold,” with a $41.62 price target.

Bank of New York Mellon Corp acquired a new stake in Frontline PLC (NYSE:FRO - Free Report) in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 306,152 shares of the shipping company's stock, valued at approximately $10,651,000. Bank of New York Mellon Corp owned 0.14% of Frontline as of its most recent SEC filing.

Several other large investors have also bought and sold shares of the company. Sei Investments Co. acquired a new stake in Frontline during the first quarter valued at approximately $948,000. Y Intercept Hong Kong Ltd acquired a new position in Frontline in the first quarter worth approximately $1,151,000. Renaissance Technologies LLC grew its position in Frontline by 133.5% in the first quarter. Renaissance Technologies LLC now owns 927,838 shares of the shipping company's stock worth $32,344,000 after buying an additional 530,500 shares during the last quarter. WIT Partners Advisory Pte. Ltd. acquired a new position in Frontline in the first quarter worth approximately $5,214,000. Finally, Amundi increased its holdings in shares of Frontline by 51.1% in the first quarter. Amundi now owns 322,684 shares of the shipping company's stock valued at $11,436,000 after buying an additional 109,154 shares in the last quarter. Institutional investors own 22.70% of the company's stock.

Frontline Trading Up 2.5%

NYSE FRO opened at $45.45 on Thursday. Frontline PLC has a twelve month low of $20.47 and a twelve month high of $45.59. The company has a debt-to-equity ratio of 0.69, a quick ratio of 2.03 and a current ratio of 1.87. The stock has a market cap of $10.12 billion, a price-to-earnings ratio of 6.81 and a beta of 0.05. The firm's 50 day moving average price is $39.49 and its two-hundred day moving average price is $37.14.

Frontline (NYSE:FRO - Get Free Report) last announced its earnings results 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 net margin of 49.47% and a return on equity of 44.24%. Frontline's revenue for the quarter was up 96.5% compared to the same quarter last year. During the same period last year, the firm earned $0.36 earnings per share.

Frontline Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 28th. Shareholders of record on Friday, September 18th will be paid a dividend of $2.61 per share. This is a boost from Frontline's previous quarterly dividend of $1.55. The ex-dividend date of this dividend is Friday, September 18th. This represents a $10.44 annualized dividend and a yield of 23.0%. Frontline's dividend payout ratio (DPR) is presently 92.95%.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on the company. Pareto Securities downgraded Frontline from a "buy" rating to a "hold" rating and set a $39.46 price objective for the company. in a research report on Monday, May 25th. Danske cut Frontline from a "hold" rating to a "sell" rating in a report on Friday, August 21st. Weiss Ratings raised Frontline from a "buy (b-)" rating to a "buy (b)" rating in a research report on Friday, August 28th. DZ Bank downgraded Frontline from a "hold" rating to a "sell" rating in a report on Friday, August 21st. Finally, Wall Street Zen upgraded Frontline from a "buy" rating to a "strong-buy" rating in a research report on Saturday, August 29th. Four equities 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. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $41.62.

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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