Silver Point Capital L.P. Makes New $3.91 Million Investment in Frontier Group Holdings, Inc. $ULCC

Key Points

• Silver Point Capital L.P. acquired 900,000 shares of Frontier Group Holdings, Inc., valued at approximately $3.9 million, making it the fund's 8th largest position.
• Frontier Group reported a loss of $0.31 earnings per share for the latest quarter, missing estimates and reflecting a revenue decline of 4.5% year-over-year.
• Several institutional investors, including Price T Rowe Associates and UBS AM, have increased their holdings in Frontier Group, indicative of heightened interest from institutional players.

Silver Point Capital L.P. acquired a new position in Frontier Group Holdings, Inc. (NASDAQ:ULCC - Free Report) in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund acquired 900,000 shares of the company's stock, valued at approximately $3,906,000. Frontier Group makes up approximately 0.3% of Silver Point Capital L.P.'s investment portfolio, making the stock its 8th biggest position. Silver Point Capital L.P. owned 0.40% of Frontier Group at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also bought and sold shares of the business. Petrus Trust Company LTA acquired a new stake in Frontier Group in the 1st quarter worth about $219,000. AQR Capital Management LLC raised its stake 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. Graham Capital Management L.P. acquired a new stake in Frontier Group in the 1st quarter worth about $1,003,000. State of Wyoming acquired a new stake in Frontier Group in the 1st quarter worth about $98,000. Finally, Trexquant Investment LP bought a new position in Frontier Group in the 1st quarter valued at about $2,224,000.

Frontier Group Price Performance

Shares of Frontier Group stock traded up $0.08 during midday trading on Friday, hitting $5.46. 1,317,156 shares of the company traded hands, compared to its average volume of 3,848,497. The stock has a market cap of $1.24 billion, a price-to-earnings ratio of -34.03 and a beta of 2.63. 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 firm's fifty day moving average price is $4.42 and its 200-day moving average price is $4.35. Frontier Group Holdings, Inc. has a 12 month low of $2.89 and a 12 month high of $10.26.

Frontier Group (NASDAQ:ULCC - Get Free Report) last announced its quarterly earnings results on Tuesday, August 5th. The company reported ($0.31) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.28) by ($0.03). The company had revenue of $929.00 million for the quarter, compared to the consensus estimate 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 revenue for the quarter was down 4.5% compared to the same quarter last year. During the same period last year, the firm posted $0.14 earnings per share. Frontier Group has set its Q3 2025 guidance at -0.420--0.260 EPS. As a group, sell-side analysts forecast that Frontier Group Holdings, Inc. will post 0.91 earnings per share for the current year.

Analyst Ratings Changes

ULCC has been the topic of several recent analyst reports. Deutsche Bank Aktiengesellschaft raised shares of Frontier Group from a "hold" rating to a "buy" rating and raised their target price for the company from $4.00 to $8.00 in a report on Tuesday, September 2nd. UBS Group decreased their target price on shares of Frontier Group from $4.00 to $3.50 and set a "neutral" rating on the stock in a report on Wednesday, August 6th. Morgan Stanley decreased their target price on shares of Frontier Group from $10.00 to $9.00 and set an "equal weight" rating on the stock in a report on Monday, May 19th. Finally, Bank of America decreased their target price on shares of Frontier Group from $4.75 to $4.00 and set a "neutral" rating on the stock in a report on Tuesday, July 1st. Two equities research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $5.61.

Frontier Group 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.