Frontier Group (NASDAQ:ULCC) Shares Down 8% - Should You Sell?

Key Points

• Frontier Group's stock dropped 8% during mid-day trading, reaching a low of $4.51 and closing at $4.44, with trading volume declining significantly by 56% from its average.
• Recent analyst reports have led to mixed ratings for Frontier Group, with Bank of America lowering their price target from $4.75 to $4.00 while Deutsche Bank upgraded their rating and increased the target from $4.00 to $8.00.
• Frontier Group reported a loss of ($0.31) EPS for the last quarter, falling short of analysts' expectations, with a revenue of $929 million, which is down 4.5% year-over-year.

Frontier Group Holdings, Inc. (NASDAQ:ULCC - Get Free Report) dropped 8% during mid-day trading on Tuesday . The company traded as low as $4.51 and last traded at $4.44. Approximately 1,663,926 shares were traded during trading, a decline of 56% from the average daily volume of 3,822,643 shares. The stock had previously closed at $4.82.

Analyst Ratings Changes

ULCC has been the subject of a number of research reports. Bank of America decreased their target price on shares of Frontier Group from $4.75 to $4.00 and set a "neutral" rating for the company in a research report on Tuesday, July 1st. Seaport Res Ptn upgraded shares of Frontier Group to a "hold" rating in a research report on Thursday, September 25th. Deutsche Bank Aktiengesellschaft upgraded shares of Frontier Group from a "hold" rating to a "buy" rating and upped their price target for the stock from $4.00 to $8.00 in a research report on Tuesday, September 2nd. Finally, UBS Group upped their price objective on shares of Frontier Group from $3.50 to $5.00 and gave the company a "neutral" rating in a research note on Friday. Two investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to MarketBeat, Frontier Group currently has a consensus rating of "Hold" and a consensus price target of $6.00.

Frontier Group Stock Performance

The company has a market capitalization of $1.01 billion, a price-to-earnings ratio of -27.56 and a beta of 2.62. The company has a current ratio of 0.41, a quick ratio of 0.36 and a debt-to-equity ratio of 0.53. The stock's fifty day simple moving average is $4.67 and its 200-day simple moving average is $4.19.

Frontier Group (NASDAQ:ULCC - Get Free Report) last announced its quarterly earnings data on Tuesday, August 5th. The company reported ($0.31) earnings per share for the quarter, missing analysts' consensus estimates of ($0.28) by ($0.03). Frontier Group had a negative net margin of 0.87% and a negative return on equity of 12.56%. The firm had revenue of $929.00 million during the quarter, compared to analyst estimates of $951.92 million. During the same quarter in the previous year, the business posted $0.14 earnings per share. Frontier Group's revenue for the quarter was down 4.5% compared to the same quarter last year. Frontier Group has set its Q3 2025 guidance at -0.420--0.260 EPS. Analysts predict that Frontier Group Holdings, Inc. will post 0.91 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of ULCC. U S Global Investors Inc. grew its position in Frontier Group by 59.2% during the 2nd quarter. U S Global Investors Inc. now owns 6,204,862 shares of the company's stock worth $22,524,000 after purchasing an additional 2,306,248 shares during the last quarter. Balyasny Asset Management L.P. acquired a new position in Frontier Group during the second quarter worth about $5,387,000. Jump Financial LLC acquired a new position in Frontier Group during the second quarter worth about $4,190,000. Silver Point Capital L.P. acquired a new position in Frontier Group during the first quarter worth about $3,906,000. Finally, American Century Companies Inc. grew its holdings in shares of Frontier Group by 1,353.6% during the first quarter. American Century Companies Inc. now owns 774,988 shares of the company's stock worth $3,363,000 after buying an additional 721,674 shares in the last quarter.

Frontier Group Company Profile

Frontier Group Holdings, Inc, provides low-fare passenger airline services to leisure travelers in the United States and Latin America. The company sells its products through direct distribution channels, including its website, mobile app, and contact centers. As of December 31, 2023, it had a fleet of 136 Airbus single-aisle aircrafts.

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