Empowered Funds LLC Makes New Investment in Frontline PLC $FRO

Key Points

• Empowered Funds LLC purchased 84,804 Frontline shares during the second quarter, valued at approximately $2.95 million. Institutional investors and hedge funds collectively own 22.7% of the company.
• Frontline reported quarterly revenue of $943.3 million, up 96.5% year over year, though EPS of $2.61 fell short of estimates. The company raised its quarterly dividend to $2.61, implying an annualized yield of about 23%.
• Frontline shares opened at $45.45, near their 52-week high, while analyst sentiment remains mixed: the stock has a consensus “Hold” rating and an average price target of $41.62.

Empowered Funds LLC purchased a new stake in shares of Frontline PLC (NYSE:FRO - Free Report) during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm purchased 84,804 shares of the shipping company's stock, valued at approximately $2,950,000.

Several other institutional investors have also modified their holdings of the company. Vanguard Group Inc. boosted its stake in Frontline by 1.1% during the fourth quarter. Vanguard Group Inc. now owns 5,903,785 shares of the shipping company's stock valued at $129,966,000 after buying an additional 63,432 shares in the last quarter. Arrowstreet Capital Limited Partnership raised its position in 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 worth $202,080,000 after acquiring an additional 5,662,172 shares in the last quarter. Balyasny Asset Management L.P. lifted its holdings in Frontline by 44.0% in the 3rd quarter. Balyasny Asset Management L.P. now owns 2,247,120 shares of the shipping company's stock valued at $51,212,000 after acquiring an additional 686,212 shares during the last quarter. BlackRock Inc. acquired a new stake in Frontline in the 2nd quarter valued at about $50,846,000. Finally, UBS Group AG boosted its position in shares of Frontline by 18.2% during the 4th quarter. UBS Group AG now owns 1,411,265 shares of the shipping company's stock valued at $30,794,000 after purchasing an additional 217,760 shares in the last quarter. Institutional investors and hedge funds own 22.70% of the company's stock.

Frontline Stock Up 2.5%

Shares of NYSE:FRO opened at $45.45 on Thursday. Frontline PLC has a 52 week low of $20.47 and a 52 week 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 company has a market cap of $10.12 billion, a PE ratio of 6.81 and a beta of 0.05. The firm has a 50 day simple moving average of $39.49 and a 200 day simple moving average of $37.14.

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 the consensus estimate of $2.74 by ($0.13). Frontline had a return on equity of 44.24% and a net margin of 49.47%.The business had revenue of $943.30 million during the quarter, compared to analyst estimates of $758.89 million. During the same period last year, the business earned $0.36 EPS. The business's quarterly revenue was up 96.5% on a year-over-year basis.

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 issued a $2.61 dividend. The ex-dividend date is Friday, September 18th. This represents a $10.44 dividend on an annualized basis and a dividend yield of 23.0%. This is a positive change from Frontline's previous quarterly dividend of $1.55. Frontline's dividend payout ratio is currently 92.95%.

Wall Street Analyst Weigh In

A number of analysts recently commented on FRO shares. Nordea Equity Research downgraded shares of Frontline to a "hold" rating in a report on Monday. Wall Street Zen upgraded Frontline from a "buy" rating to a "strong-buy" rating in a research report on Saturday, August 29th. Weiss Ratings raised Frontline from a "buy (b-)" rating to a "buy (b)" rating in a research note on Friday, August 28th. DZ Bank cut Frontline from a "hold" rating to a "sell" rating in a report on Friday, August 21st. Finally, Pareto Securities downgraded Frontline from a "buy" rating to a "hold" rating and set a $39.46 target price for the company. in a report on Monday, May 25th. 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 stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price 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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