Silver Point Capital L.P. Acquires New Shares 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. bought a new stake in Frontier Group Holdings, Inc. (NASDAQ:ULCC - Free Report) during the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund bought 900,000 shares of the company's stock, valued at approximately $3,906,000. Frontier Group accounts for 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 as of its most recent SEC filing.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the business. Voloridge Investment Management LLC raised its holdings in shares of Frontier Group by 835.6% in the 4th quarter. Voloridge Investment Management LLC now owns 1,702,008 shares of the company's stock valued at $12,101,000 after buying an additional 1,520,094 shares during the period. Two Sigma Investments LP raised its holdings in shares of Frontier Group by 488.9% in the 4th quarter. Two Sigma Investments LP now owns 980,426 shares of the company's stock valued at $6,971,000 after buying an additional 813,929 shares during the period. American Century Companies Inc. raised its holdings in shares of Frontier Group by 1,353.6% in the 1st quarter. American Century Companies Inc. now owns 774,988 shares of the company's stock valued at $3,363,000 after buying an additional 721,674 shares during the period. Deutsche Bank AG raised its holdings in shares of Frontier Group by 2,201.8% in the 1st quarter. Deutsche Bank AG now owns 585,888 shares of the company's stock valued at $2,543,000 after buying an additional 560,434 shares during the period. Finally, Dimensional Fund Advisors LP raised its holdings in shares of Frontier Group by 210.4% in the 4th quarter. Dimensional Fund Advisors LP now owns 804,693 shares of the company's stock valued at $5,721,000 after buying an additional 545,485 shares during the period.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on the company. Morgan Stanley cut their price objective on Frontier Group from $10.00 to $9.00 and set an "equal weight" rating on the stock in a report on Monday, May 19th. Deutsche Bank Aktiengesellschaft raised Frontier Group from a "hold" rating to a "buy" rating and boosted their target price for the stock from $4.00 to $8.00 in a research note on Tuesday, September 2nd. UBS Group lowered their target price on Frontier Group from $4.00 to $3.50 and set a "neutral" rating for the company in a research note on Wednesday, August 6th. Finally, Bank of America lowered their target price on Frontier Group from $4.75 to $4.00 and set a "neutral" rating for the company in a research note on Tuesday, July 1st. Two equities research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $5.61.

Frontier Group Stock Performance

Shares of NASDAQ ULCC traded down $0.30 during trading hours on Tuesday, reaching $5.08. The stock had a trading volume of 4,560,052 shares, compared to its average volume of 4,981,333. The firm has a market cap of $1.16 billion, a price-to-earnings ratio of -31.75 and a beta of 2.63. The company has a current ratio of 0.41, a quick ratio of 0.36 and a debt-to-equity ratio of 0.53. Frontier Group Holdings, Inc. has a fifty-two week low of $2.89 and a fifty-two week high of $10.26. The firm has a 50-day moving average of $4.37 and a 200-day moving average of $4.36.

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

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.