Frontier Group (NASDAQ:ULCC) Rating Increased to Hold at Wall Street Zen

Key Points

• Frontier Group was upgraded by Wall Street Zen from sell to hold, while the broader analyst view remains cautious with a consensus rating of Reduce and an average target price of $5.07.
• The company reported better-than-expected Q1 earnings, posting a smaller loss per share than analysts expected and slightly beating revenue estimates, with revenue up 16.8% from a year earlier.
• Shares opened at $7.22, near the stock’s 52-week high of $7.24, even as insiders sold stock recently and the company continues to face weak profitability metrics and elevated leverage.

Frontier Group (NASDAQ:ULCC - Get Free Report) was upgraded by equities researchers at Wall Street Zen from a "sell" rating to a "hold" rating in a report released on Sunday.

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

Frontier Group Price Performance

ULCC stock opened at $7.22 on Friday. The stock has a market capitalization of $1.66 billion, a PE ratio of -4.51 and a beta of 2.60. The company has a fifty day moving average of $5.05 and a 200-day moving average of $4.79. The company has a debt-to-equity ratio of 1.75, a quick ratio of 0.44 and a current ratio of 0.49. Frontier Group has a one year low of $3.02 and a one year high of $7.24.

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 (EPS) for the quarter, topping analysts' consensus estimates of ($0.37) by $0.07. The business had revenue of $1.06 billion for the quarter, compared to analyst estimates of $1.04 billion. Frontier Group had a negative net margin of 9.62% and a negative return on equity of 39.20%. The business's revenue was up 16.8% compared to the same quarter last year. During the same period in the previous year, the business posted ($0.19) earnings per share. Frontier Group has set its Q2 2026 guidance at -0.600--0.45 EPS. As a group, analysts expect that Frontier Group will post -1.01 EPS for the current year.

Insider Transactions at Frontier Group

In other news, SVP Alexandre Clerc sold 5,060 shares of Frontier Group stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $5.93, for a total transaction of $30,005.80. Following the completion of the transaction, the senior vice president owned 47,698 shares of the company's stock, valued at $282,849.14. The trade was a 9.59% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, VP Trevor J. Stedke sold 83,110 shares of the business's stock in a transaction dated Thursday, May 7th. The stock was sold at an average price of $5.41, for a total transaction of $449,625.10. Following the completion of the sale, the vice president owned 167,277 shares in the company, valued at $904,968.57. This represents a 33.19% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 111,670 shares of company stock worth $603,756. Corporate insiders own 48.00% of the company's stock.

Institutional Investors Weigh In On Frontier Group

Hedge funds have recently modified their holdings of the company. U S Global Investors Inc. grew its holdings in shares of Frontier Group by 63.9% during the first quarter. U S Global Investors Inc. now owns 6,781,412 shares of the company's stock worth $23,938,000 after buying an additional 2,643,448 shares in the last quarter. Balyasny Asset Management L.P. purchased a new position in shares of Frontier Group during the second quarter valued at approximately $5,387,000. Mountaineer Partners Management LLC acquired a new stake in Frontier Group during the fourth quarter worth approximately $4,490,000. Bank of America Corp DE boosted its position in Frontier Group by 39.2% during the third quarter. Bank of America Corp DE now owns 3,027,309 shares of the company's stock worth $13,366,000 after acquiring an additional 852,798 shares during the last quarter. Finally, HRT Financial LP grew its stake in Frontier Group by 932.1% in the 4th quarter. HRT Financial LP now owns 817,425 shares of the company's stock worth $3,850,000 after acquiring an additional 738,228 shares during the period.

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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