BTG Pactual Asset Management US LLC Invests $1.14 Million in Frontline PLC $FRO

Key Points

• BTG Pactual Asset Management US LLC initiated a Frontline position worth approximately $1.14 million, purchasing 32,620 shares. Institutional investors collectively own 22.7% of FRO.
• Frontline reported strong quarterly results, with earnings per share of $2.96 and revenue of $943.3 million—up 96.5% year over year and above analyst expectations.
• The company increased its quarterly dividend to $2.61 per share, implying an annualized dividend of $10.44 and a 23.9% yield, though its payout ratio is elevated at 152.71%. Analysts’ consensus rating remains “Hold,” with a $41.62 price target.

BTG Pactual Asset Management US LLC bought a new position in Frontline PLC (NYSE:FRO - Free Report) during the second quarter, according to its most recent disclosure with the SEC. The firm bought 32,620 shares of the shipping company's stock, valued at approximately $1,135,000.

Other institutional investors and hedge funds also recently bought and sold shares of the company. Royal Bank of Canada increased its position in Frontline by 32.3% in the first quarter. Royal Bank of Canada now owns 26,342 shares of the shipping company's stock worth $392,000 after buying an additional 6,424 shares in the last quarter. Millennium Management LLC purchased a new position in shares of Frontline during the 1st quarter valued at about $7,587,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in shares of Frontline by 12.4% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 185,226 shares of the shipping company's stock valued at $2,751,000 after acquiring an additional 20,370 shares during the period. American Century Companies Inc. grew its stake in shares of Frontline by 93.6% during the 2nd quarter. American Century Companies Inc. now owns 72,539 shares of the shipping company's stock valued at $1,190,000 after acquiring an additional 35,078 shares during the period. Finally, Invesco Ltd. increased its holdings in Frontline by 215.8% in the 2nd quarter. Invesco Ltd. now owns 91,039 shares of the shipping company's stock worth $1,494,000 after acquiring an additional 62,210 shares in the last quarter. 22.70% of the stock is currently owned by hedge funds and other institutional investors.

Frontline Stock Down 1.0%

Shares of FRO stock opened at $43.73 on Tuesday. The company's fifty day simple moving average is $39.36 and its two-hundred day simple moving average is $36.93. Frontline PLC has a 52 week low of $20.31 and a 52 week high of $45.29. The stock has a market cap of $9.74 billion, a P/E ratio of 10.77 and a beta of 0.02. The company has a quick ratio of 2.03, a current ratio of 2.03 and a debt-to-equity ratio of 0.83.

Frontline (NYSE:FRO - Get Free Report) last issued 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. Frontline had a return on equity of 27.80% and a net margin of 36.70%.The firm had revenue of $943.30 million during the quarter, compared to analyst estimates of $758.85 million. During the same quarter last year, the business posted $0.36 earnings per share. The business's quarterly revenue was up 96.5% compared to the same quarter last year.

Frontline Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, September 28th. Investors of record on Friday, September 18th will be paid a dividend of $2.61 per share. The ex-dividend date of this dividend is Friday, September 18th. This is a boost from Frontline's previous quarterly dividend of $1.55. This represents a $10.44 dividend on an annualized basis and a yield of 23.9%. Frontline's dividend payout ratio is currently 152.71%.

Analysts Set New Price Targets

A number of research firms have commented on FRO. Weiss Ratings upgraded shares of Frontline from a "buy (b-)" rating to a "buy (b)" rating in a research note on Friday. Danske lowered shares of Frontline from a "hold" rating to a "sell" rating in a research report on Friday, August 21st. DZ Bank cut shares of Frontline from a "hold" rating to a "sell" rating in a research note on Friday, August 21st. Nordea Equity Research downgraded shares of Frontline to a "hold" rating in a research report on Monday. Finally, Pareto Securities cut shares of Frontline from a "buy" rating to a "hold" rating and set a $39.46 target price on the stock. in a research note on Monday, May 25th. Four analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the stock has an average rating of "Hold" and a consensus target price 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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