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

Frontier Group Holdings, Inc. (NASDAQ:ULCC - Get Free Report)'s share price gapped down before the market opened on Friday . The stock had previously closed at $3.75, but opened at $3.56. Frontier Group shares last traded at $3.47, with a volume of 1,082,568 shares traded.

Analysts Set New Price Targets

Several equities research analysts recently issued reports on ULCC shares. Evercore ISI cut 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. 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. Barclays cut their price objective on shares of Frontier Group from $14.00 to $10.00 and set an "overweight" rating for the company in a research report on Tuesday, April 8th. Deutsche Bank Aktiengesellschaft cut shares of Frontier Group from a "buy" rating to a "hold" rating and cut their price objective for the stock from $12.00 to $8.00 in a research report on Tuesday, March 4th. Finally, Bank of America cut their price objective on shares of Frontier Group from $10.00 to $7.00 and set a "neutral" rating for the company in a research report on Thursday, April 3rd. One equities research analyst has rated the stock with a sell rating, nine have issued a hold rating and one has given a buy rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $6.00.

Frontier Group Trading Down 8.5%

The company's 50 day moving average price is $3.66 and its 200 day moving average price is $5.84. The company has a debt-to-equity ratio of 0.45, a current ratio of 0.53 and a quick ratio of 0.48. The firm has a market cap of $781.23 million, a PE ratio of 9.53 and a beta of 2.67.

Frontier Group (NASDAQ:ULCC - Get Free Report) last posted its quarterly earnings results on Thursday, May 1st. The company reported ($0.19) EPS for the quarter, topping the consensus estimate of ($0.22) by $0.03. The business 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 2.25% and a return on equity of 9.83%. The company's quarterly revenue was up 5.4% compared to the same quarter last year. During the same quarter in the previous year, the firm posted ($0.09) earnings per share. As a group, analysts forecast that Frontier Group Holdings, Inc. will post 0.91 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, SVP Alexandre Clerc sold 12,000 shares of Frontier Group 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 now owns 11,912 shares in the company, valued at $46,337.68. The trade was a 50.18% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 48.00% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in ULCC. Byrne Asset Management LLC purchased a new position in Frontier Group in the first quarter worth approximately $35,000. KLP Kapitalforvaltning AS purchased a new position in Frontier Group in the fourth quarter worth approximately $50,000. Victory Capital Management Inc. purchased a new position in Frontier Group in the first quarter worth approximately $76,000. Kapitalo Investimentos Ltda purchased a new position in Frontier Group in the first quarter worth approximately $77,000. Finally, Wealth Enhancement Advisory Services LLC lifted its stake in Frontier Group by 71.8% in the first quarter. Wealth Enhancement Advisory Services LLC now owns 18,061 shares of the company's stock worth $78,000 after acquiring an additional 7,546 shares during the last quarter.

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.