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)'s stock price gapped down prior to trading on Tuesday following a weaker than expected earnings announcement. 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 trading hands.

The company reported ($0.31) EPS for the quarter, missing the consensus estimate 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 the consensus estimate of $951.92 million. During the same period in the previous year, the company posted $0.14 EPS. The firm's revenue for the quarter was down 4.5% on a year-over-year basis.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on the stock. Morgan Stanley lowered their price objective on shares of Frontier Group from $10.00 to $9.00 and set an "equal weight" rating for the company in a research report on Monday, May 19th. Citigroup lowered their price objective on shares of Frontier Group from $7.25 to $4.00 and set a "neutral" rating for the company in a research report on Friday, April 11th. Evercore ISI lowered 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 report on Friday, April 11th. 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. Finally, UBS Group decreased their target price on shares of Frontier Group from $4.00 to $3.50 and set a "neutral" rating for the company in a research report on Wednesday. Nine analysts have rated the stock with a hold rating and one has issued a buy rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $5.61.

Insider Activity at Frontier Group

In other news, SVP Alexandre Clerc sold 12,000 shares of the business's 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 completion of the transaction, the senior vice president directly owned 11,912 shares in the company, valued at approximately $46,337.68. The trade was a 50.18% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 48.00% of the company's stock.

Institutional Investors Weigh In On Frontier Group

Institutional investors have recently modified their holdings of the company. Vanguard Group Inc. boosted its stake in Frontier Group by 0.3% during the fourth quarter. Vanguard Group Inc. now owns 8,186,633 shares of the company's stock worth $58,207,000 after acquiring an additional 26,682 shares in the last quarter. U S Global Investors Inc. boosted its stake in Frontier Group by 59.2% during the second quarter. U S Global Investors Inc. now owns 6,204,862 shares of the company's stock worth $22,524,000 after acquiring an additional 2,306,248 shares in the last quarter. Balyasny Asset Management L.P. boosted its stake in Frontier Group by 31.8% during the fourth quarter. Balyasny Asset Management L.P. now owns 2,396,885 shares of the company's stock worth $17,042,000 after acquiring an additional 578,151 shares in the last quarter. Towle & Co. boosted its stake in Frontier Group by 6.1% during the fourth quarter. Towle & Co. now owns 2,348,882 shares of the company's stock worth $16,701,000 after acquiring an additional 134,723 shares in the last quarter. Finally, Geode Capital Management LLC boosted its stake in Frontier Group by 24.9% during the second quarter. Geode Capital Management LLC now owns 2,060,452 shares of the company's stock worth $7,481,000 after acquiring an additional 410,392 shares in the last quarter.

Frontier Group Stock Performance

The firm has a market capitalization of $762.02 million, a P/E ratio of -20.88 and a beta of 2.62. The company's 50 day moving average is $3.93 and its 200-day moving average is $4.98. The company has a quick ratio of 0.45, a current ratio of 0.41 and a debt-to-equity ratio of 0.53.

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.