BlackRock Inc. Makes New Investment in Frontline PLC $FRO

Key Points

• BlackRock acquired 1.46 million Frontline shares worth approximately $50.8 million during the second quarter, giving it a 0.66% stake. Institutional investors collectively own 22.7% of the company.
• 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 a 23.9% annualized yield, while analysts remain mixed and assign the stock an average “Hold” rating with a $41.62 price target.

BlackRock Inc. acquired a new stake in Frontline PLC (NYSE:FRO - Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm acquired 1,461,519 shares of the shipping company's stock, valued at approximately $50,846,000. BlackRock Inc. owned 0.66% of Frontline at the end of the most recent quarter.

Other institutional investors and hedge funds have also made changes to their positions in the company. University of Texas Texas AM Investment Management Co. purchased a new position in shares of Frontline during the 4th quarter valued at approximately $25,000. Assetmark Inc. increased its holdings in Frontline by 278.6% in the 1st quarter. Assetmark Inc. now owns 973 shares of the shipping company's stock worth $34,000 after acquiring an additional 716 shares in the last quarter. Sunbelt Securities Inc. purchased a new stake in Frontline in the 3rd quarter worth $41,000. Parallel Advisors LLC raised its position in Frontline by 58.9% during the first quarter. Parallel Advisors LLC now owns 1,311 shares of the shipping company's stock worth $46,000 after acquiring an additional 486 shares during the period. Finally, Global Retirement Partners LLC acquired a new position in Frontline during the second quarter worth $48,000. 22.70% of the stock is currently owned by hedge funds and other institutional investors.

Frontline Price Performance

Shares of NYSE FRO opened at $43.73 on Tuesday. The stock's 50-day moving average is $39.36 and its two-hundred day moving average is $36.93. The company has a debt-to-equity ratio of 0.83, a current ratio of 2.03 and a quick ratio of 2.03. The company has a market cap of $9.74 billion, a price-to-earnings ratio of 10.77 and a beta of 0.02. Frontline PLC has a 1-year low of $20.31 and a 1-year high of $45.29.

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

Frontline Increases Dividend

The firm also recently disclosed 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. The ex-dividend date of this dividend is Friday, September 18th. This represents a $10.44 annualized dividend and a dividend yield of 23.9%. This is an increase from Frontline's previous quarterly dividend of $1.55. Frontline's payout ratio is currently 152.71%.

Analyst Ratings Changes

FRO has been the topic of several research analyst reports. DZ Bank cut Frontline from a "hold" rating to a "sell" rating in a report on Friday, August 21st. Nordea Equity Research downgraded Frontline to a "hold" rating in a research report on Monday. BTIG Research lifted their price target on Frontline from $45.00 to $55.00 and gave the stock a "buy" rating in a research note on Wednesday, June 24th. Danske cut shares of Frontline from a "hold" rating to a "sell" rating in a research note on Friday, August 21st. Finally, Wall Street Zen upgraded Frontline from a "buy" rating to a "strong-buy" rating in a report on Saturday. Four analysts have rated the stock with a Buy rating, five have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $41.62.

About Frontline

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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