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

Key Points

• Wall Street Zen downgraded Frontier Group (NASDAQ:ULCC) from a "sell" to a "strong sell", while the broader analyst mix is mixed (five Holds, three Sells) with an average MarketBeat target of $4.93 and an overall consensus of "Reduce".
• Frontier set FY2026 guidance at -0.40 to -0.50 EPS (Q1 guidance -0.44 to -0.26) despite a recent quarter that beat EPS estimates; the company still shows a negative net margin and negative return on equity.
• ULCC traded around $3.82 with a market cap of about $877.6 million and a 1-year range of $2.89–$6.66, and insiders own roughly 48% of the company (SVP Steve Schuller recently sold 5,000 shares).

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

Other analysts have also issued research reports about the stock. Susquehanna lifted their price target on shares of Frontier Group from $4.00 to $5.00 and gave the company a "neutral" rating in a research report on Friday, January 9th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Frontier Group in a research report on Monday, December 29th. UBS Group reduced 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 report on Monday, March 16th. Barclays reaffirmed an "underweight" rating and set a $4.00 price target (down from $6.00) on shares of Frontier Group in a research report on Monday, March 2nd. Finally, Deutsche Bank Aktiengesellschaft lowered shares of Frontier Group from a "buy" rating to a "hold" rating and set a $6.00 price target on the stock. in a research report on Tuesday, February 10th. Five research analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Reduce" and an average target price of $4.93.

Frontier Group Trading Down 0.3%

ULCC opened at $3.82 on Friday. The company has a debt-to-equity ratio of 0.73, a current ratio of 0.46 and a quick ratio of 0.41. The company's 50 day simple moving average is $4.27 and its two-hundred day simple moving average is $4.48. Frontier Group has a 1-year low of $2.89 and a 1-year high of $6.66. The firm has a market capitalization of $877.57 million, a price-to-earnings ratio of -6.26 and a beta of 2.57.

Frontier Group (NASDAQ:ULCC - Get Free Report) last released its earnings results on Wednesday, February 11th. The company reported $0.23 earnings per share for the quarter, topping analysts' consensus estimates of $0.10 by $0.13. Frontier Group had a negative net margin of 3.68% and a negative return on equity of 27.39%. The business had revenue of $997.00 million for the quarter, compared to analyst estimates of $971.35 million. During the same period last year, the company posted $0.23 EPS. The business's revenue was down .5% on a year-over-year basis. Frontier Group has set its FY 2026 guidance at -0.400-0.500 EPS and its Q1 2026 guidance at -0.440--0.260 EPS. Analysts expect that Frontier Group will post 0.91 EPS for the current fiscal year.

Insider Activity at Frontier Group

In other news, SVP Steve Schuller sold 5,000 shares of Frontier Group stock in a transaction that occurred on Friday, February 6th. The shares were sold at an average price of $6.00, for a total transaction of $30,000.00. Following the sale, the senior vice president owned 94,926 shares of the company's stock, valued at approximately $569,556. The trade was a 5.00% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 48.00% of the company's stock.

Institutional Trading of Frontier Group

Institutional investors have recently added to or reduced their stakes in the stock. Caitong International Asset Management Co. Ltd acquired a new stake in Frontier Group in the 3rd quarter valued at approximately $27,000. Quarry LP acquired a new stake in Frontier Group in the 4th quarter valued at approximately $34,000. Brooklyn Investment Group increased its holdings in Frontier Group by 490.7% in the 3rd quarter. Brooklyn Investment Group now owns 10,928 shares of the company's stock valued at $48,000 after purchasing an additional 9,078 shares during the last quarter. Wealth Enhancement Advisory Services LLC acquired a new stake in Frontier Group in the 3rd quarter valued at approximately $49,000. Finally, Jones Financial Companies Lllp increased its holdings in Frontier Group by 2,439.2% in the 3rd quarter. Jones Financial Companies Lllp now owns 12,366 shares of the company's stock valued at $61,000 after purchasing an additional 11,879 shares during the last quarter.

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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