Silver Point Capital L.P. Invests $12.14 Million in Frontier Group Holdings, Inc. $ULCC

Key Points

• Silver Point Capital initiated a $12.14 million position in Frontier Group, acquiring 1.535 million shares and representing about 0.67% of the company. Several other institutional investors also increased or initiated holdings.
• Frontier reported better-than-expected quarterly results, with a loss of $0.10 per share versus the $0.47 consensus estimate and revenue of $1.28 billion, up 37.7% year over year.
• Despite recent analyst price-target increases, Wall Street maintains a consensus “Reduce” rating with an average target of $6.86. Insider selling has been substantial, totaling more than 12.05 million shares worth approximately $87.1 million over the past 90 days.

Silver Point Capital L.P. bought a new position in Frontier Group Holdings, Inc. (NASDAQ:ULCC - Free Report) in the second quarter, according to its most recent filing with the SEC. The firm bought 1,535,000 shares of the company's stock, valued at approximately $12,141,850. Frontier Group makes up 0.0% of Silver Point Capital L.P.'s investment portfolio, making the stock its 9th largest position. Silver Point Capital L.P. owned 0.67% of Frontier Group as of its most recent filing with the SEC.

A number of other institutional investors have also recently made changes to their positions in the business. GSA Capital Partners LLP raised its holdings in Frontier Group by 2,044.4% in the 4th quarter. GSA Capital Partners LLP now owns 318,159 shares of the company's stock valued at $1,499,000 after acquiring an additional 303,322 shares during the last quarter. U S Global Investors Inc. boosted its holdings in Frontier Group by 63.9% during the first quarter. U S Global Investors Inc. now owns 6,781,412 shares of the company's stock worth $23,938,000 after buying an additional 2,643,448 shares during the last quarter. Mountaineer Partners Management LLC acquired a new stake in Frontier Group in the fourth quarter valued at $4,490,000. Quantbot Technologies LP acquired a new position in shares of Frontier Group during the 2nd quarter worth $888,000. Finally, Lazard Asset Management LLC acquired a new position in Frontier Group during the 1st quarter worth approximately $1,651,000.

Insider Buying and Selling

In related news, EVP Howard Diamond sold 24,195 shares of the business's stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $8.25, for a total transaction of $199,608.75. Following the completion of the sale, the executive vice president directly owned 133,126 shares in the company, valued at approximately $1,098,289.50. The trade was a 15.38% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO Mark Christopher Mitchell sold 125,000 shares of the business's stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $8.09, for a total value of $1,011,250.00. Following the transaction, the chief financial officer owned 53,785 shares in the company, valued at approximately $435,120.65. This trade represents a 69.92% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 12,053,742 shares of company stock worth $87,051,587. 48.00% of the stock is owned by company insiders.

Frontier Group Stock Performance

ULCC traded down $0.07 on Friday, reaching $5.84. The stock had a trading volume of 1,801,077 shares, compared to its average volume of 4,507,765. The business's 50-day moving average price is $6.82 and its two-hundred day moving average price is $5.38. The company has a current ratio of 0.58, a quick ratio of 0.54 and a debt-to-equity ratio of 2.77. The company has a market cap of $1.34 billion, a P/E ratio of -3.48 and a beta of 2.59. Frontier Group Holdings, Inc. has a 12-month low of $3.02 and a 12-month high of $8.40.

Frontier Group (NASDAQ:ULCC - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The company reported ($0.10) earnings per share for the quarter, beating analysts' consensus estimates of ($0.47) by $0.37. Frontier Group had a negative return on equity of 35.54% and a negative net margin of 9.29%.The business had revenue of $1.28 billion during the quarter, compared to analysts' expectations of $1.22 billion. During the same quarter last year, the business posted ($0.31) earnings per share. The business's revenue for the quarter was up 37.7% on a year-over-year basis. Frontier Group has set its Q4 2026 guidance at 0.000-0.200 EPS and its Q3 2026 guidance at -0.100-0.100 EPS. Sell-side analysts forecast that Frontier Group Holdings, Inc. will post -0.34 earnings per share for the current year.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on ULCC. Susquehanna upped their target price on shares of Frontier Group from $4.50 to $7.00 and gave the stock a "neutral" rating in a research note on Tuesday, July 7th. Citigroup boosted their price objective on shares of Frontier Group from $5.00 to $9.00 and gave the company a "neutral" rating in a research note on Friday, June 26th. Wall Street Zen raised shares of Frontier Group from a "sell" rating to a "hold" rating in a report on Sunday, June 21st. Barclays raised their price objective on Frontier Group from $4.00 to $7.00 and gave the company an "underweight" rating in a research note on Thursday, June 25th. Finally, Zacks Research upgraded Frontier Group from a "hold" rating to a "strong-buy" rating in a report on Wednesday, July 29th. One analyst has rated the stock with a Strong Buy rating, five have given a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Reduce" and an average price target of $6.86.

About Frontier Group

Frontier Group, trading on Nasdaq under the ticker ULCC, is the holding company for Frontier Airlines, an ultra-low-cost carrier based in Denver, Colorado. The company’s core business centers on providing no-frills air travel across a point-to-point network while generating ancillary revenue from add-on services such as baggage fees, seat selection, priority boarding and in-flight refreshments. This fare-plus-a-la-carte model allows Frontier to offer competitive base fares and maintain low operating costs.

Founded in February 1994 by industry veterans Andrew Levy and Russell Beardsmore, Frontier Airlines commenced operations with a small fleet of MD-80 aircraft.