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

Key Points

• Analysts collectively rate Frontier Group “Reduce.” Of nine analysts, three recommend selling, five advise holding and one gives a strong-buy rating; the average 12-month price target is $6.86.
• Frontier reported quarterly revenue of $1.28 billion, up 37.7% year over year, and an adjusted loss of $0.10 per share that beat expectations by $0.37. However, the company remains unprofitable, with a negative net margin of 9.29% and negative return on equity.
• Insiders sold 11.8 million shares worth approximately $84.8 million during the last quarter, including a 34% reduction in ownership by major shareholder Frontier Group Holdings LLC.

Frontier Group Holdings, Inc. (NASDAQ:ULCC - Get Free Report) has been given an average recommendation of "Reduce" by the nine analysts that are covering the firm, MarketBeat.com reports. Three investment analysts have rated the stock with a sell recommendation, five have given a hold recommendation and one has assigned a strong buy recommendation to the company. The average 1 year target price among brokerages that have covered the stock in the last year is $6.8571.

A number of research analysts recently issued reports on the stock. Susquehanna lifted their price target on shares of Frontier Group from $4.50 to $7.00 and gave the company a "neutral" rating in a research report on Tuesday, July 7th. Citigroup upped their price objective on shares of Frontier Group from $5.00 to $9.00 and gave the stock a "neutral" rating in a report on Friday, June 26th. Zacks Research raised shares of Frontier Group from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, July 29th. Wall Street Zen upgraded shares of Frontier Group from a "sell" rating to a "hold" rating in a report on Sunday, June 21st. Finally, Weiss Ratings cut Frontier Group from a "sell (d)" rating to a "sell (d-)" rating in a research report on Thursday.

Frontier Group Stock Performance

Shares of Frontier Group stock opened at $6.75 on Monday. 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 firm has a market capitalization of $1.55 billion, a P/E ratio of -4.02 and a beta of 2.59. The business has a fifty day simple moving average of $6.58 and a two-hundred day simple moving average of $5.19. Frontier Group 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 earnings results on Wednesday, July 29th. The company reported ($0.10) EPS for the quarter, beating analysts' consensus estimates of ($0.47) by $0.37. The firm had revenue of $1.28 billion for the quarter, compared to analysts' expectations of $1.22 billion. Frontier Group had a negative net margin of 9.29% and a negative return on equity of 35.54%. The company's quarterly revenue was up 37.7% on a year-over-year basis. During the same quarter in the previous year, the business posted ($0.31) EPS. 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. On average, equities analysts forecast that Frontier Group will post -0.48 earnings per share for the current fiscal year.

Insider Activity at Frontier Group

In other Frontier Group news, major shareholder Group Holdings - Frontier Llc sold 11,700,000 shares of Frontier Group stock in a transaction on Thursday, July 9th. The stock was sold at an average price of $7.20, for a total transaction of $84,240,000.00. Following the completion of the transaction, the insider owned 22,706,526 shares in the company, valued at approximately $163,486,987.20. The trade was a 34.01% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, SVP Alexandre Clerc sold 5,060 shares of the business's stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $5.93, for a total value of $30,005.80. Following the completion of the sale, the senior vice president directly owned 47,698 shares in the company, valued at $282,849.14. This trade represents a 9.59% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 11,811,670 shares of company stock worth $84,843,756 over the last quarter. 48.00% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Frontier Group

Hedge funds have recently bought and sold shares of the company. U S Global Investors Inc. increased its stake in Frontier Group by 63.9% during the 1st quarter. U S Global Investors Inc. now owns 6,781,412 shares of the company's stock valued at $23,938,000 after purchasing an additional 2,643,448 shares in the last quarter. Dimensional Fund Advisors LP raised its holdings in Frontier Group by 5.5% in the third quarter. Dimensional Fund Advisors LP now owns 4,044,167 shares of the company's stock worth $17,860,000 after buying an additional 209,154 shares during the last quarter. Bank of America Corp DE lifted its stake in shares of Frontier Group by 39.2% in the third quarter. Bank of America Corp DE now owns 3,027,309 shares of the company's stock worth $13,366,000 after buying an additional 852,798 shares in the last quarter. Balyasny Asset Management L.P. lifted its stake in shares of Frontier Group by 48.4% in the third quarter. Balyasny Asset Management L.P. now owns 2,202,219 shares of the company's stock worth $9,723,000 after buying an additional 718,147 shares in the last quarter. Finally, Geode Capital Management LLC grew its holdings in shares of Frontier Group by 0.4% during the fourth quarter. Geode Capital Management LLC now owns 2,196,472 shares of the company's stock valued at $10,347,000 after buying an additional 8,946 shares during the last quarter.

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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