Frontier Group (NASDAQ:ULCC) Shares Gap Down - What's Next?

Key Points

• Frontier Group shares gapped down on Friday, opening at $7.44 after closing at $7.70 and last trading near $7.02, indicating weakness in early trading.
• Analysts have generally turned more cautious but raised price targets: several firms lifted targets to around $7-$9, while the stock’s consensus rating remains “Reduce” with a $6.86 target price.
• Frontier’s latest earnings beat estimates on revenue and EPS, but the company still reported a loss and issued negative Q2 2026 guidance, while insiders have also been selling shares recently.

Frontier Group Holdings, Inc. (NASDAQ:ULCC - Get Free Report) gapped down prior to trading on Friday . The stock had previously closed at $7.70, but opened at $7.44. Frontier Group shares last traded at $7.0160, with a volume of 705,182 shares.

Wall Street Analyst Weigh In

A number of analysts recently commented on ULCC shares. Wall Street Zen raised Frontier Group from a "sell" rating to a "hold" rating in a research report on Sunday, June 21st. UBS Group boosted their price objective on Frontier Group from $4.00 to $7.00 and gave the stock a "neutral" rating in a research report on Tuesday, June 23rd. Susquehanna upped their price objective on Frontier Group from $4.50 to $7.00 and gave the company a "neutral" rating in a research note on Tuesday. Barclays raised their target price on Frontier Group from $4.00 to $7.00 and gave the company an "underweight" rating in a research report on Thursday, June 25th. Finally, Citigroup lifted their target price on Frontier Group from $5.00 to $9.00 and gave the stock a "neutral" rating in a research note on Friday, June 26th. Five research analysts have rated the stock with a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, Frontier Group has a consensus rating of "Reduce" and a consensus target price of $6.86.

Frontier Group Stock Performance

The company has a debt-to-equity ratio of 1.75, a current ratio of 0.49 and a quick ratio of 0.44. The company has a 50 day simple moving average of $6.04 and a 200-day simple moving average of $5.02. The stock has a market capitalization of $1.61 billion, a P/E ratio of -4.37 and a beta of 2.56.

Frontier Group (NASDAQ:ULCC - Get Free Report) last posted its quarterly earnings results on Tuesday, May 5th. The company reported ($0.30) earnings per share for the quarter, topping the consensus estimate of ($0.37) by $0.07. Frontier Group had a negative return on equity of 39.20% and a negative net margin of 9.62%.The company had revenue of $1.06 billion during the quarter, compared to the consensus estimate of $1.04 billion. During the same quarter in the prior year, the company earned ($0.19) EPS. The firm's quarterly revenue was up 16.8% compared to the same quarter last year. Frontier Group has set its Q2 2026 guidance at -0.600--0.45 EPS. On average, equities analysts forecast that Frontier Group Holdings, Inc. will post -0.83 EPS for the current year.

Insider Buying and Selling at Frontier Group

In other news, CAO Josh A. Wetzel sold 13,500 shares of Frontier Group stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $4.75, for a total value of $64,125.00. Following the completion of the transaction, the chief accounting officer owned 12,061 shares in the company, valued at $57,289.75. This trade represents a 52.81% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Trevor J. Stedke sold 83,110 shares of the business's stock in a transaction that occurred on Thursday, May 7th. The shares were sold at an average price of $5.41, for a total transaction of $449,625.10. Following the completion of the sale, the vice president directly owned 167,277 shares in the company, valued at approximately $904,968.57. This trade represents a 33.19% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 111,670 shares of company stock worth $603,756 over the last ninety days. Company insiders own 48.00% of the company's stock.

Institutional Investors Weigh In On Frontier Group

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. U S Global Investors Inc. boosted its holdings in shares of Frontier Group by 63.9% in the first quarter. U S Global Investors Inc. now owns 6,781,412 shares of the company's stock worth $23,938,000 after acquiring an additional 2,643,448 shares during the period. Balyasny Asset Management L.P. bought a new stake in shares of Frontier Group during the 2nd quarter valued at $5,387,000. Mountaineer Partners Management LLC purchased a new stake in Frontier Group during the 4th quarter worth about $4,490,000. Bank of America Corp DE lifted its holdings in Frontier Group by 39.2% during the 3rd quarter. Bank of America Corp DE now owns 3,027,309 shares of the company's stock worth $13,366,000 after purchasing an additional 852,798 shares in the last quarter. Finally, HRT Financial LP boosted its stake in Frontier Group by 932.1% in the 4th quarter. HRT Financial LP now owns 817,425 shares of the company's stock worth $3,850,000 after purchasing an additional 738,228 shares during the period.

Frontier Group Company Profile

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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