Frontline PLC $FRO Shares Bought by Hsbc Holdings PLC

Key Points

• HSBC Holdings PLC significantly increased its stake in Frontline PLC by 195.6% in the fourth quarter, buying an additional 149,590 shares and bringing its total holding to 226,079 shares worth about $4.92 million.
• Frontline’s latest quarterly results beat revenue expectations but missed on earnings, with EPS of $1.55 versus $1.58 expected and revenue of $714.24 million, up 66.9% year over year.
• The company also raised its quarterly dividend to $1.55 per share, equivalent to a 17.0% annualized yield, though the payout ratio remains high at 152.71%.

Hsbc Holdings PLC raised its holdings in Frontline PLC (NYSE:FRO - Free Report) by 195.6% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 226,079 shares of the shipping company's stock after purchasing an additional 149,590 shares during the period. Hsbc Holdings PLC owned about 0.10% of Frontline worth $4,922,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also made changes to their positions in FRO. Vanguard Group Inc. grew its stake in Frontline by 1.1% in the 4th quarter. Vanguard Group Inc. now owns 5,903,785 shares of the shipping company's stock valued at $129,966,000 after acquiring an additional 63,432 shares during the period. Balyasny Asset Management L.P. grew its position in shares of Frontline by 44.0% in the third quarter. Balyasny Asset Management L.P. now owns 2,247,120 shares of the shipping company's stock valued at $51,212,000 after purchasing an additional 686,212 shares during the period. UBS Group AG increased its stake in shares of Frontline by 18.2% during the fourth quarter. UBS Group AG now owns 1,411,265 shares of the shipping company's stock worth $30,794,000 after purchasing an additional 217,760 shares in the last quarter. The Manufacturers Life Insurance Company increased its stake in shares of Frontline by 27.3% during the second quarter. The Manufacturers Life Insurance Company now owns 942,698 shares of the shipping company's stock worth $15,477,000 after purchasing an additional 202,142 shares in the last quarter. Finally, Barclays PLC raised its position in shares of Frontline by 256.9% during the 4th quarter. Barclays PLC now owns 826,343 shares of the shipping company's stock worth $18,031,000 after purchasing an additional 594,811 shares during the last quarter. 22.70% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on FRO. Danske lowered shares of Frontline to a "hold" rating in a research note on Tuesday, May 26th. Wall Street Zen upgraded Frontline from a "buy" rating to a "strong-buy" rating in a research note on Saturday, June 27th. Weiss Ratings raised Frontline from a "hold (c+)" rating to a "buy (b)" rating in a report on Friday, May 22nd. BTIG Research raised their target price on Frontline from $45.00 to $55.00 and gave the company a "buy" rating in a research report on Wednesday, June 24th. Finally, Pareto Securities lowered Frontline from a "buy" rating to a "hold" rating and set a $39.46 price target on the stock. in a research note on Monday, May 25th. Four equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to data from MarketBeat.com, Frontline presently has an average rating of "Hold" and a consensus price target of $41.62.

Frontline Stock Performance

NYSE:FRO opened at $36.55 on Friday. The company's 50-day moving average price is $37.31 and its 200-day moving average price is $33.04. The company has a current ratio of 2.03, a quick ratio of 2.03 and a debt-to-equity ratio of 0.83. The company has a market cap of $8.14 billion, a P/E ratio of 9.00 and a beta of 0.01. Frontline PLC has a twelve month low of $17.87 and a twelve month high of $43.10.

Frontline (NYSE:FRO - Get Free Report) last posted its quarterly earnings results on Friday, May 22nd. The shipping company reported $1.55 earnings per share for the quarter, missing analysts' consensus estimates of $1.58 by ($0.03). Frontline had a return on equity of 27.80% and a net margin of 36.70%.The business had revenue of $714.24 million for the quarter, compared to analyst estimates of $579.59 million. During the same quarter in the previous year, the firm posted $0.18 earnings per share. The business's revenue was up 66.9% compared to the same quarter last year.

Frontline Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 23rd. Investors of record on Friday, June 12th were issued a $1.55 dividend. This is a boost from Frontline's previous quarterly dividend of $1.03. This represents a $6.20 annualized dividend and a dividend yield of 17.0%. The ex-dividend date of this dividend was Friday, June 12th. Frontline's payout ratio is 152.71%.

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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