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

Key Points

• Shares gapped down — ULCC opened at $3.65 after a $3.82 close and was trading down about 3% with roughly 572,697 shares changing hands.
• Analysts have cut targets and ratings recently, leaving a MarketBeat consensus of "Reduce" with an average price target of $4.93 after several downgrades and lower price targets from firms like UBS, Citi and Barclays.
• Fundamentals remain weak: although the latest quarter beat EPS estimates, Frontier reported a negative net margin and ROE, has a negative P/E, and set FY2026 guidance of roughly -$0.40 to -$0.50 EPS.

Frontier Group Holdings, Inc. (NASDAQ:ULCC - Get Free Report)'s stock price gapped down prior to trading on Monday . The stock had previously closed at $3.82, but opened at $3.65. Frontier Group shares last traded at $3.6550, with a volume of 572,697 shares trading hands.

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on ULCC. UBS Group decreased their target price on Frontier Group from $6.00 to $4.00 and set a "neutral" rating for the company in a report on Monday, March 16th. Wall Street Zen lowered Frontier Group from a "sell" rating to a "strong sell" rating in a report on Saturday. Citigroup decreased their target price on Frontier Group from $5.00 to $3.50 and set a "neutral" rating for the company in a report on Friday, March 20th. Barclays reiterated an "underweight" rating and issued a $4.00 target price (down from $6.00) on shares of Frontier Group in a report on Monday, March 2nd. Finally, Susquehanna lifted their target price on Frontier Group from $4.00 to $5.00 and gave the company a "neutral" rating in a report on Friday, January 9th. Five equities research analysts have rated the stock with a Hold rating and three have given a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Reduce" and an average price target of $4.93.

Frontier Group Trading Down 3.0%

The company has a debt-to-equity ratio of 0.73, a current ratio of 0.46 and a quick ratio of 0.41. The business's 50 day moving average is $4.27 and its 200 day moving average is $4.47. The stock has a market cap of $851.15 million, a price-to-earnings ratio of -6.08 and a beta of 2.57.

Frontier Group (NASDAQ:ULCC - Get Free Report) last issued its earnings results on Wednesday, February 11th. The company reported $0.23 EPS for the quarter, topping analysts' consensus estimates of $0.10 by $0.13. The firm had revenue of $997.00 million during the quarter, compared to the consensus estimate of $971.35 million. Frontier Group had a negative net margin of 3.68% and a negative return on equity of 27.39%. The company's revenue was down .5% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.23 earnings per share. Frontier Group has set its FY 2026 guidance at -0.400-0.500 EPS and its Q1 2026 guidance at -0.440--0.260 EPS. As a group, equities analysts expect 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 Steve Schuller sold 5,000 shares of the company's stock in a transaction on Friday, February 6th. The shares were sold at an average price of $6.00, for a total value of $30,000.00. Following the completion of the transaction, the senior vice president owned 94,926 shares in the company, valued at $569,556. This represents a 5.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Insiders own 48.00% of the company's stock.

Institutional Trading of Frontier Group

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Caitong International Asset Management Co. Ltd increased its position in shares of Frontier Group by 237.3% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 20,463 shares of the company's stock worth $96,000 after purchasing an additional 14,396 shares in the last quarter. Invesco Ltd. increased its position in shares of Frontier Group by 29.4% during the fourth quarter. Invesco Ltd. now owns 251,047 shares of the company's stock worth $1,182,000 after purchasing an additional 57,055 shares in the last quarter. Numerai GP LLC increased its position in shares of Frontier Group by 530.6% during the fourth quarter. Numerai GP LLC now owns 86,544 shares of the company's stock worth $408,000 after purchasing an additional 72,819 shares in the last quarter. Caption Management LLC increased its position in shares of Frontier Group by 19.8% during the fourth quarter. Caption Management LLC now owns 59,900 shares of the company's stock worth $282,000 after purchasing an additional 9,900 shares in the last quarter. Finally, Russell Investments Group Ltd. increased its position in shares of Frontier Group by 37.5% during the fourth quarter. Russell Investments Group Ltd. now owns 191,298 shares of the company's stock worth $901,000 after purchasing an additional 52,146 shares in the last quarter.

About Frontier Group

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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