Goldman Sachs Group Inc. Increases Stake in Frontier Group Holdings, Inc. $ULCC

Key Points

• Goldman Sachs Group Inc. raised its stake in Frontier Group Holdings by 33%, acquiring an additional 251,509 shares, bringing its total ownership to 1,013,456 shares valued at approximately $4.4 million.
• Following analyst upgrades, Deutsche Bank increased Frontier Group's price target from $4.00 to $8.00, while UBS and Bank of America set lower targets, reflecting mixed sentiments with the consensus rating remaining a "Hold".
• Frontier Group reported a quarterly loss of ($0.31) EPS, missing estimates, with a year-over-year revenue decline of 4.5% to $929 million, indicating ongoing challenges despite owning a fleet of 136 Airbus aircraft.

Goldman Sachs Group Inc. increased its holdings in Frontier Group Holdings, Inc. (NASDAQ:ULCC - Free Report) by 33.0% during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 1,013,456 shares of the company's stock after buying an additional 251,509 shares during the quarter. Goldman Sachs Group Inc. owned about 0.44% of Frontier Group worth $4,398,000 at the end of the most recent reporting period.

Several other hedge funds have also bought and sold shares of ULCC. Byrne Asset Management LLC purchased a new stake in Frontier Group in the 1st quarter worth approximately $35,000. Victory Capital Management Inc. purchased a new stake in Frontier Group in the 1st quarter worth approximately $76,000. Kapitalo Investimentos Ltda purchased a new stake in Frontier Group in the 1st quarter worth approximately $77,000. Wealth Enhancement Advisory Services LLC boosted its position in Frontier Group by 71.8% in the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 18,061 shares of the company's stock worth $78,000 after purchasing an additional 7,546 shares in the last quarter. Finally, AQR Capital Management LLC boosted its position in Frontier Group by 46.0% in the 1st quarter. AQR Capital Management LLC now owns 18,777 shares of the company's stock worth $81,000 after purchasing an additional 5,913 shares in the last quarter.

Frontier Group Price Performance

Shares of NASDAQ:ULCC traded down $0.08 during midday trading on Friday, reaching $5.19. 4,062,687 shares of the company's stock traded hands, compared to its average volume of 4,219,775. Frontier Group Holdings, Inc. has a 1 year low of $2.89 and a 1 year high of $10.26. The company has a market cap of $1.18 billion, a P/E ratio of -32.44 and a beta of 2.62. The company has a debt-to-equity ratio of 0.53, a quick ratio of 0.36 and a current ratio of 0.41. The company has a fifty day simple moving average of $4.56 and a two-hundred day simple moving average of $4.23.

Frontier Group (NASDAQ:ULCC - Get Free Report) last announced its earnings results on Tuesday, August 5th. The company reported ($0.31) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.28) by ($0.03). The business had revenue of $929.00 million for the quarter, compared to analysts' expectations of $951.92 million. Frontier Group had a negative net margin of 0.87% and a negative return on equity of 12.56%. The company's quarterly revenue was down 4.5% on a year-over-year basis. During the same quarter last year, the business earned $0.14 EPS. Frontier Group has set its Q3 2025 guidance at -0.420--0.260 EPS. Equities analysts predict that Frontier Group Holdings, Inc. will post 0.91 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

Several research firms have commented on ULCC. Bank of America lowered their price objective on Frontier Group from $4.75 to $4.00 and set a "neutral" rating on the stock in a research report on Tuesday, July 1st. Deutsche Bank Aktiengesellschaft upgraded Frontier Group from a "hold" rating to a "buy" rating and upped their price objective for the stock from $4.00 to $8.00 in a research report on Tuesday, September 2nd. Finally, UBS Group decreased their target price on Frontier Group from $4.00 to $3.50 and set a "neutral" rating on the stock in a research report on Wednesday, August 6th. Two research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company's stock. Based on data from MarketBeat, Frontier Group currently has a consensus rating of "Hold" and an average price target of $5.81.

Frontier Group Company Profile

Frontier Group Holdings, Inc, provides low-fare passenger airline services to leisure travelers in the United States and Latin America. The company sells its products through direct distribution channels, including its website, mobile app, and contact centers. As of December 31, 2023, it had a fleet of 136 Airbus single-aisle aircrafts.