Frontier Developments (LON:FDEV) Releases Quarterly Earnings Results

Key Points

• Frontier Developments reported earnings of GBX 42.40 per share for the quarter, with a substantial negative return on equity of 30.43% and a negative net margin of 24.05%.
• Despite insider selling, the stock has received a "buy" rating from analysts at Shore Capital, and has a consensus average price target of GBX 315.
• The company's stock opened at GBX 386.38, reflecting an increase of 3.0% on the trading day following the earnings report.

Frontier Developments (LON:FDEV - Get Free Report) issued its earnings results on Wednesday. The company reported GBX 42.40 EPS for the quarter, Digital Look Earnings reports. Frontier Developments had a negative net margin of 24.05% and a negative return on equity of 30.43%.

Frontier Developments Stock Up 6.7%

FDEV stock traded up GBX 25.50 during mid-day trading on Monday, hitting GBX 408. 163,408 shares of the company were exchanged, compared to its average volume of 84,251. The company has a market capitalization of £152.34 million, a PE ratio of 990.29, a price-to-earnings-growth ratio of 2.11 and a beta of 0.03. The company has a current ratio of 2.93, a quick ratio of 2.61 and a debt-to-equity ratio of 27.70. Frontier Developments has a twelve month low of GBX 175.60 and a twelve month high of GBX 413.64. The firm has a fifty day simple moving average of GBX 370.13 and a 200 day simple moving average of GBX 277.78.

Wall Street Analyst Weigh In

FDEV has been the subject of a number of recent analyst reports. Deutsche Bank Aktiengesellschaft raised their price target on shares of Frontier Developments from GBX 310 to GBX 390 and gave the company a "hold" rating in a report on Friday. Berenberg Bank raised their price target on shares of Frontier Developments from GBX 330 to GBX 450 and gave the company a "buy" rating in a report on Wednesday, September 10th. Finally, Shore Capital reaffirmed a "buy" rating on shares of Frontier Developments in a report on Wednesday, September 10th. Two analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of GBX 420.

Insiders Place Their Bets

In other Frontier Developments news, insider David John Braben sold 28,400 shares of the firm's stock in a transaction on Friday, July 25th. The shares were sold at an average price of GBX 361, for a total transaction of £102,524. Over the last ninety days, insiders have sold 461,053 shares of company stock worth $171,859,123. 37.66% of the stock is owned by company insiders.

Frontier Developments Company Profile

Frontier is a leading independent developer and publisher of video games for PC and console, creating immersive and fun gameplay, with unparalleled artistic quality. At Frontier, we specialise in creating endless possibilities in playful, fun and creative worlds. From some of the world's biggest licensed entertainment and sporting franchises, to intricately crafted worlds where players can explore and make their mark, our games are all underpinned by our unwavering passion for creating compelling and innovative experiences that continue to inspire and delight our players. We have created games that have defined genres, been critically acclaimed, and reached many millions of players.