Frontier Group (NASDAQ:ULCC) Shares Down 8.3% - Here's What Happened

Key Points

• Frontier Group's shares fell by 8.3% during mid-day trading, reaching a low of $4.03 after previously closing at $4.38, with a significant drop in trading volume.
• Research firms have revised their price targets for Frontier Group, with some lowering estimates to as low as $3.00, indicating a general shift in market sentiment towards a more cautious outlook.
• Despite posting better-than-expected earnings per share, Frontier Group's revenue fell short of estimates, raising concerns about its financial performance in the current market environment.

Shares of Frontier Group Holdings, Inc. (NASDAQ:ULCC - Get Free Report) were down 8.3% during mid-day trading on Friday . The company traded as low as $4.03 and last traded at $4.02. Approximately 1,258,764 shares traded hands during trading, a decline of 65% from the average daily volume of 3,585,203 shares. The stock had previously closed at $4.38.

Wall Street Analyst Weigh In

A number of research firms have recently commented on ULCC. Evercore ISI reduced their price objective on shares of Frontier Group from $7.00 to $5.00 and set an "in-line" rating for the company in a research note on Friday, April 11th. Susquehanna cut their price objective on shares of Frontier Group from $9.00 to $3.00 and set a "neutral" rating for the company in a research report on Monday, April 7th. Citigroup lowered their target price on shares of Frontier Group from $7.25 to $4.00 and set a "neutral" rating on the stock in a report on Friday, April 11th. UBS Group set a $4.00 price objective on shares of Frontier Group and gave the company a "neutral" rating in a research note on Monday, July 7th. Finally, Morgan Stanley decreased their price objective on shares of Frontier Group from $10.00 to $9.00 and set an "equal weight" rating on the stock in a research note on Monday, May 19th. Nine research analysts have rated the stock with a hold rating and one has given a buy rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $5.67.

Frontier Group Stock Down 8.8%

The company has a current ratio of 0.49, a quick ratio of 0.45 and a debt-to-equity ratio of 0.48. The stock's 50-day simple moving average is $3.97 and its 200-day simple moving average is $5.18. The firm has a market capitalization of $909.90 million, a P/E ratio of 13.71 and a beta of 2.60.

Frontier Group (NASDAQ:ULCC - Get Free Report) last released its earnings results on Thursday, May 1st. The company reported ($0.19) earnings per share for the quarter, beating analysts' consensus estimates of ($0.22) by $0.03. The firm had revenue of $912.00 million during the quarter, compared to the consensus estimate of $996.05 million. Frontier Group had a net margin of 1.78% and a return on equity of 5.53%. The company's revenue was up 5.4% compared to the same quarter last year. During the same period in the prior year, the firm earned ($0.09) EPS. As a group, research analysts predict that Frontier Group Holdings, Inc. will post 0.91 earnings per share for the current fiscal year.

Insider Activity at Frontier Group

In other Frontier Group news, SVP Alexandre Clerc sold 12,000 shares of the stock in a transaction that occurred on Monday, June 2nd. The shares were sold at an average price of $3.89, for a total value of $46,680.00. Following the sale, the senior vice president directly owned 11,912 shares in the company, valued at $46,337.68. This represents a 50.18% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Insiders own 48.00% of the company's stock.

Institutional Trading of Frontier Group

Several institutional investors and hedge funds have recently bought and sold shares of ULCC. KLP Kapitalforvaltning AS bought a new position in shares of Frontier Group in the 4th quarter worth $50,000. Byrne Asset Management LLC bought a new position in shares of Frontier Group in the 1st quarter worth $35,000. CWM LLC increased its holdings in shares of Frontier Group by 165.0% in the 2nd quarter. CWM LLC now owns 10,042 shares of the company's stock worth $36,000 after buying an additional 6,253 shares during the last quarter. Baron Wealth Management LLC bought a new position in shares of Frontier Group in the 2nd quarter worth $37,000. Finally, MQS Management LLC bought a new position in shares of Frontier Group in the 2nd quarter worth $37,000.

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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