Frontier Group Holdings, Inc. (NASDAQ:ULCC) Receives Average Rating of "Reduce" from Analysts

Key Points

• Frontier Group Holdings (NASDAQ: ULCC) has an average analyst rating of "Reduce" from eight firms, with three sell ratings and five hold ratings. The average 12-month price target is about $5.07.
• Recent analyst actions were mixed to negative, including Citigroup raising its target to $5.00 with a neutral rating, while Barclays and UBS both lowered price targets to $4.00 and kept bearish or neutral views. Wall Street Zen also downgraded the stock to sell.
• Insider selling has been notable, with executives selling shares in recent transactions and 111,670 shares sold over the last 90 days. Frontier’s stock traded at $6.25, above the consensus target, while the company continues to report losses despite year-over-year revenue growth.

Shares of Frontier Group Holdings, Inc. (NASDAQ:ULCC - Get Free Report) have earned an average recommendation of "Reduce" from the eight ratings firms that are presently covering the stock, Marketbeat Ratings reports. Three equities research analysts have rated the stock with a sell rating and five have given a hold rating to the company. The average twelve-month target price among brokers that have issued ratings on the stock in the last year is $5.0714.

A number of research firms recently issued reports on ULCC. Citigroup upped their price target on shares of Frontier Group from $4.90 to $5.00 and gave the company a "neutral" rating in a research note on Thursday, May 14th. Barclays reaffirmed an "underweight" rating and set a $4.00 price target (down from $6.00) on shares of Frontier Group in a research note on Monday, March 2nd. Wall Street Zen downgraded shares of Frontier Group from a "hold" rating to a "sell" rating in a research note on Saturday. UBS Group decreased their price target on shares of Frontier Group from $6.00 to $4.00 and set a "neutral" rating on the stock in a research note on Monday, March 16th. Finally, Weiss Ratings reaffirmed a "sell (d)" rating on shares of Frontier Group in a research note on Tuesday, May 19th.

Insider Buying and Selling at Frontier Group

In related news, SVP Alexandre Clerc sold 5,060 shares of the company's stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $5.93, for a total transaction of $30,005.80. Following the sale, the senior vice president owned 47,698 shares of the company's stock, valued at $282,849.14. This represents a 9.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CAO Josh A. Wetzel sold 13,500 shares of the company's stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $4.75, for a total transaction of $64,125.00. Following the sale, the chief accounting officer directly owned 12,061 shares in the company, valued at approximately $57,289.75. The trade was a 52.81% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 111,670 shares of company stock worth $603,756 in the last ninety days. Company insiders own 48.00% of the company's stock.

Institutional Investors Weigh In On Frontier Group

Hedge funds and other institutional investors have recently made changes to their positions in the company. SG Americas Securities LLC raised its stake in shares of Frontier Group by 4.5% in the fourth quarter. SG Americas Securities LLC now owns 115,962 shares of the company's stock valued at $546,000 after acquiring an additional 4,995 shares during the period. Straightline Group LLC raised its stake in shares of Frontier Group by 9.5% in the fourth quarter. Straightline Group LLC now owns 60,586 shares of the company's stock valued at $285,000 after acquiring an additional 5,232 shares during the period. AQR Capital Management LLC raised its stake in shares of Frontier Group by 46.0% in the first quarter. AQR Capital Management LLC now owns 18,777 shares of the company's stock valued at $81,000 after acquiring an additional 5,913 shares during the period. Caitong International Asset Management Co. Ltd purchased a new stake in shares of Frontier Group in the third quarter valued at $27,000. Finally, Victory Capital Management Inc. raised its stake in shares of Frontier Group by 9.5% in the third quarter. Victory Capital Management Inc. now owns 70,382 shares of the company's stock valued at $311,000 after acquiring an additional 6,108 shares during the period.

Frontier Group Price Performance

ULCC stock opened at $6.25 on Friday. Frontier Group has a one year low of $3.02 and a one year high of $6.66. The company's fifty day moving average price is $4.73 and its 200-day moving average price is $4.71. The company has a debt-to-equity ratio of 1.75, a quick ratio of 0.44 and a current ratio of 0.49. The company has a market capitalization of $1.44 billion, a PE ratio of -3.91 and a beta of 2.60.

Frontier Group (NASDAQ:ULCC - Get Free Report) last released its earnings results on Tuesday, May 5th. The company reported ($0.30) EPS for the quarter, topping the consensus estimate of ($0.37) by $0.07. Frontier Group had a negative net margin of 9.62% and a negative return on equity of 39.20%. The firm had revenue of $1.07 billion for the quarter, compared to the consensus estimate of $1.04 billion. During the same quarter in the previous year, the firm earned ($0.19) earnings per share. The company's quarterly revenue was up 16.8% compared to the same quarter last year. Frontier Group has set its Q2 2026 guidance at -0.600--0.45 EPS. On average, equities analysts anticipate that Frontier Group will post -1.12 EPS for the current fiscal year.

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.

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