Frontier Group (NASDAQ:ULCC) Shares Gap Down After Earnings Miss

Key Points

• Frontier Group's shares gapped down from $4.09 to $3.90 after reporting a quarterly earnings miss, with earnings per share at ($0.31), falling short of the consensus estimate of ($0.28).
• The company's revenue declined by 4.5% compared to the same quarter last year, and it had a net margin of 1.78%.
• Analysts have lowered their price targets for Frontier Group, with current estimates ranging from $3.00 to $5.00, maintaining a consensus rating of "Hold."

Frontier Group Holdings, Inc. (NASDAQ:ULCC - Get Free Report) shares gapped down prior to trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $4.09, but opened at $3.90. Frontier Group shares last traded at $3.50, with a volume of 670,647 shares.

The company reported ($0.31) earnings per share for the quarter, missing the consensus estimate of ($0.28) by ($0.03). Frontier Group had a net margin of 1.78% and a return on equity of 5.53%. During the same period in the previous year, the business posted $0.14 earnings per share. The business's revenue was down 4.5% compared to the same quarter last year.

Analyst Ratings Changes

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

Insider Activity

In other news, SVP Alexandre Clerc sold 12,000 shares of the company's stock in a transaction that occurred on Monday, June 2nd. The stock was sold at an average price of $3.89, for a total value of $46,680.00. Following the completion of 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 ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 48.00% of the stock is owned by company insiders.

Institutional Investors Weigh In On Frontier Group

A number of large investors have recently made changes to their positions in ULCC. Price T Rowe Associates Inc. MD lifted its holdings in Frontier Group by 8.2% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 30,442 shares of the company's stock valued at $217,000 after acquiring an additional 2,296 shares during the last quarter. Voleon Capital Management LP lifted its holdings in Frontier Group by 9.4% in the first quarter. Voleon Capital Management LP now owns 38,692 shares of the company's stock valued at $168,000 after acquiring an additional 3,335 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its holdings in Frontier Group by 8.4% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 75,359 shares of the company's stock valued at $536,000 after acquiring an additional 5,834 shares during the last quarter. AQR Capital Management LLC lifted its holdings in 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 acquiring an additional 5,913 shares during the last quarter. Finally, CWM LLC lifted its holdings in Frontier Group by 165.0% in the second quarter. CWM LLC now owns 10,042 shares of the company's stock valued at $36,000 after acquiring an additional 6,253 shares during the last quarter.

Frontier Group Stock Down 17.7%

The stock has a market capitalization of $767.10 million, a price-to-earnings ratio of 11.91 and a beta of 2.62. The business has a fifty day moving average of $3.99 and a 200 day moving average of $5.07. The company has a debt-to-equity ratio of 0.48, a current ratio of 0.49 and a quick ratio of 0.45.

About Frontier Group

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.