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

Key Points

• Shares gapped up in pre-market trading, opening at $4.33 after a $4.00 close and last trading around $4.2650 on volume of about 2.32 million shares.
• Wall Street has been trimming expectations — multiple downgrades and cuts to price targets leave an average rating of "Reduce" and an average price target of $4.93.
• Operationally, Frontier beat quarterly EPS estimates ($0.23 vs. $0.10) but still shows negative margins and ROE, has set FY2026 guidance of -0.40 to -0.50 EPS, and sell-side analysts expect about -1.39 EPS for the year.

Shares of Frontier Group Holdings, Inc. (NASDAQ:ULCC - Get Free Report) gapped up before the market opened on Monday . The stock had previously closed at $4.00, but opened at $4.33. Frontier Group shares last traded at $4.2650, with a volume of 2,315,489 shares changing hands.

Wall Street Analysts Forecast Growth

Several research firms have commented on ULCC. Deutsche Bank Aktiengesellschaft lowered Frontier Group from a "buy" rating to a "hold" rating and set a $6.00 price objective on the stock. in a research report on Tuesday, February 10th. Citigroup lowered their price target on shares of Frontier Group from $5.00 to $3.50 and set a "neutral" rating on the stock in a report on Friday, March 20th. Bank of America restated an "underperform" rating and set a $4.00 price target (down from $5.00) on shares of Frontier Group in a research report on Tuesday, January 6th. UBS Group decreased their price objective on shares of Frontier Group from $6.00 to $4.00 and set a "neutral" rating for the company in a research report on Monday, March 16th. Finally, Wall Street Zen raised shares of Frontier Group from a "strong sell" rating to a "sell" rating in a research note on Saturday. Five equities research analysts have rated the stock with a Hold rating and three have given a Sell rating to the company's stock. According to MarketBeat.com, Frontier Group presently has an average rating of "Reduce" and an average price target of $4.93.

Frontier Group Stock Up 0.6%

The stock has a market cap of $924.66 million, a price-to-earnings ratio of -6.60 and a beta of 2.41. The business's 50 day moving average is $3.84 and its 200-day moving average is $4.43. The company has a debt-to-equity ratio of 0.73, a quick ratio of 0.41 and a current ratio of 0.46.

Frontier Group (NASDAQ:ULCC - Get Free Report) last posted its quarterly earnings data on Wednesday, February 11th. The company reported $0.23 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.10 by $0.13. The business had revenue of $997.00 million for 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 period last 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. On average, sell-side analysts predict that Frontier Group Holdings, Inc. will post -1.39 EPS for the current fiscal year.

Insider Buying and Selling

In other Frontier Group news, SVP Steve Schuller sold 5,000 shares of the stock in a transaction that occurred on Friday, February 6th. The stock was sold at an average price of $6.00, for a total transaction of $30,000.00. Following the completion of the transaction, the senior vice president owned 94,926 shares of the company's stock, valued at $569,556. This represents a 5.00% 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. Company insiders own 48.00% of the company's stock.

Institutional Trading of Frontier Group

Several large investors have recently made changes to their positions in the company. Caitong International Asset Management Co. Ltd purchased a new position in Frontier Group in the 3rd quarter valued at $27,000. Quarry LP acquired a new stake in shares of Frontier Group in the fourth quarter valued at about $34,000. Brooklyn Investment Group lifted its stake in shares of Frontier Group by 490.7% in the third quarter. Brooklyn Investment Group now owns 10,928 shares of the company's stock worth $48,000 after buying an additional 9,078 shares in the last quarter. Wealth Enhancement Advisory Services LLC purchased a new position in shares of Frontier Group in the third quarter worth about $49,000. Finally, Y Intercept Hong Kong Ltd acquired a new position in Frontier Group during the first quarter worth about $60,000.

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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