Frontier Group (NASDAQ:ULCC) Downgraded by Wall Street Zen to Sell

Key Points

• Wall Street Zen downgraded Frontier Group from hold to sell, adding to a cautious analyst outlook on the stock.
• Other analysts are mixed but generally negative: the consensus rating is “Reduce” with an average price target of $5.07, below the recent trading price around $6.25.
• Frontier reported better-than-expected quarterly results with revenue up 16.8% year over year, but it still posted a loss and guided for a larger loss in Q2 2026; recent insider selling also stood out.

Frontier Group (NASDAQ:ULCC - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a report issued on Saturday.

Several other equities research analysts have also recently commented on ULCC. Citigroup raised their target price on Frontier Group from $4.90 to $5.00 and gave the stock a "neutral" rating in a research note on Thursday, May 14th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Frontier Group in a research note on Tuesday, May 19th. Susquehanna raised their target price on Frontier Group from $3.40 to $4.50 and gave the stock a "neutral" rating in a research note on Wednesday, May 6th. Barclays reiterated an "underweight" rating and issued a $4.00 price target (down from $6.00) on shares of Frontier Group in a report on Monday, March 2nd. Finally, UBS Group cut their price target on Frontier Group from $6.00 to $4.00 and set a "neutral" rating on the stock in a report on Monday, March 16th. Five investment analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Reduce" and an average target price of $5.07.

Frontier Group Trading Up 3.0%

Shares of ULCC stock opened at $6.25 on Friday. The stock has a market cap of $1.44 billion, a price-to-earnings ratio of -3.91 and a beta of 2.60. The stock has a 50-day moving average of $4.73 and a 200-day moving average of $4.71. The company has a current ratio of 0.49, a quick ratio of 0.44 and a debt-to-equity ratio of 1.75. Frontier Group has a 1-year low of $3.02 and a 1-year high of $6.66.

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

Insider Transactions at Frontier Group

In other Frontier Group news, SVP Alexandre Clerc sold 5,060 shares of the stock in a transaction that occurred 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 transaction, the senior vice president owned 47,698 shares in the company, valued at approximately $282,849.14. This represents a 9.59% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Steve Schuller sold 10,000 shares of the stock in a transaction that occurred on Friday, June 5th. The stock was sold at an average price of $6.00, for a total value of $60,000.00. Following the completion of the transaction, the senior vice president owned 97,175 shares in the company, valued at approximately $583,050. The trade was a 9.33% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 111,670 shares of company stock worth $603,756 in the last three months. Insiders own 48.00% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. AQR Capital Management LLC lifted its holdings 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 purchasing an additional 5,913 shares in the last quarter. Goldman Sachs Group Inc. lifted its holdings in shares of Frontier Group by 33.0% in the first quarter. Goldman Sachs Group Inc. now owns 1,013,456 shares of the company's stock valued at $4,398,000 after purchasing an additional 251,509 shares in the last quarter. Rhumbline Advisers lifted its holdings in shares of Frontier Group by 7.1% in the second quarter. Rhumbline Advisers now owns 117,984 shares of the company's stock valued at $428,000 after purchasing an additional 7,791 shares in the last quarter. Invesco Ltd. lifted its holdings in shares of Frontier Group by 35.1% in the second quarter. Invesco Ltd. now owns 108,806 shares of the company's stock valued at $395,000 after purchasing an additional 28,256 shares in the last quarter. Finally, First Trust Advisors LP bought a new position in shares of Frontier Group in the second quarter valued at approximately $477,000.

Frontier Group Company Profile

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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