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

Key Points

• Frontier (NASDAQ:ULCC) gapped up, opening at $4.50 vs. a $4.23 close and last trading around $4.63 on volume of ~2.8 million shares, representing a roughly 7.6% intraday gain.
• Wall Street sentiment is negative with a consensus rating of "Reduce" and an average target of $4.93, after multiple downgrades (Citigroup, BofA, Barclays) and Wall Street Zen moving to "strong sell"; five analysts rate Hold and three rate Sell.
• Operationally, Frontier beat the prior-quarter EPS estimate ($0.23 vs. $0.10) but still shows negative margins and ROE, a market cap of ~$1.05B, and management set FY2026 guidance of -0.40 to -0.50 EPS and Q1 guidance of -0.44 to -0.26 EPS.

Frontier Group Holdings, Inc. (NASDAQ:ULCC - Get Free Report) gapped up prior to trading on Friday . The stock had previously closed at $4.23, but opened at $4.50. Frontier Group shares last traded at $4.6310, with a volume of 2,798,733 shares traded.

Wall Street Analyst Weigh In

ULCC has been the subject of several research analyst reports. Citigroup dropped their price objective on Frontier Group from $5.00 to $3.50 and set a "neutral" rating for the company in a report on Friday, March 20th. Susquehanna raised their target price on Frontier Group from $4.00 to $5.00 and gave the company a "neutral" rating in a research note on Friday, January 9th. Bank of America restated an "underperform" rating and issued a $4.00 target price (down from $5.00) on shares of Frontier Group in a research note on Tuesday, January 6th. Barclays restated an "underweight" rating and issued a $4.00 target price (down from $6.00) on shares of Frontier Group in a research note on Monday, March 2nd. Finally, Wall Street Zen cut Frontier Group from a "sell" rating to a "strong sell" rating in a research note on Saturday, April 11th. Five research analysts have rated the stock with a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Reduce" and an average target price of $4.93.

Frontier Group Stock Up 7.6%

The stock has a 50 day simple moving average of $4.15 and a 200-day simple moving average of $4.46. The firm has a market cap of $1.05 billion, a PE ratio of -7.46 and a beta of 2.57. The company has a debt-to-equity ratio of 0.73, a current ratio of 0.46 and a quick ratio of 0.41.

Frontier Group (NASDAQ:ULCC - Get Free Report) last announced its quarterly earnings data on Wednesday, February 11th. The company reported $0.23 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.10 by $0.13. The business had revenue of $997.00 million during the quarter, compared to analysts' expectations of $971.35 million. Frontier Group had a negative return on equity of 27.39% and a negative net margin of 3.68%.The firm's quarterly revenue was down .5% compared to the same quarter last year. During the same quarter in the previous year, the business earned $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. Sell-side analysts predict that Frontier Group Holdings, Inc. will post 0.91 EPS for the current fiscal year.

Insider Transactions at Frontier Group

In other Frontier Group news, SVP Steve Schuller sold 5,000 shares of Frontier Group stock in a transaction 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 in the company, valued at approximately $569,556. The trade was a 5.00% decrease in their ownership of the stock. 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 Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Caitong International Asset Management Co. Ltd purchased a new position in Frontier Group during the third quarter valued at $27,000. Quarry LP purchased a new position in Frontier Group during the fourth quarter valued at $34,000. Brooklyn Investment Group raised its stake in Frontier Group by 490.7% during the third quarter. Brooklyn Investment Group now owns 10,928 shares of the company's stock valued at $48,000 after buying an additional 9,078 shares during the last quarter. Wealth Enhancement Advisory Services LLC bought a new stake in shares of Frontier Group in the 3rd quarter worth $49,000. Finally, Jones Financial Companies Lllp increased its holdings in shares of Frontier Group by 2,439.2% in the 3rd quarter. Jones Financial Companies Lllp now owns 12,366 shares of the company's stock worth $61,000 after purchasing an additional 11,879 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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