Frontier Group (NASDAQ:ULCC) Shares Up 8.5% - Should You Buy?

Frontier Group Holdings, Inc. (NASDAQ:ULCC - Get Free Report) shares shot up 8.5% on Tuesday . The stock traded as high as $3.92 and last traded at $3.98. 329,311 shares were traded during trading, a decline of 88% from the average session volume of 2,741,702 shares. The stock had previously closed at $3.67.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on ULCC. Evercore ISI decreased 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 decreased 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. Morgan Stanley decreased their price objective on shares of Frontier Group from $10.00 to $9.00 and set an "equal weight" rating for the company in a research report on Monday, May 19th. Citigroup decreased their price objective on shares of Frontier Group from $7.25 to $4.00 and set a "neutral" rating for the company in a research report on Friday, April 11th. Finally, Deutsche Bank Aktiengesellschaft downgraded shares of Frontier Group from a "buy" rating to a "hold" rating and decreased their price target for the company from $12.00 to $8.00 in a research note on Tuesday, March 4th. One research analyst has rated the stock with a sell rating, nine have given a hold rating and one has assigned a buy rating to the stock. According to MarketBeat.com, the company has an average rating of "Hold" and an average target price of $6.00.

Frontier Group Price Performance

The stock has a market capitalization of $962.53 million, a P/E ratio of 11.92 and a beta of 2.55. The firm has a 50-day moving average price of $3.79 and a 200 day moving average price of $6.01. The company has a debt-to-equity ratio of 0.45, a quick ratio of 0.48 and a current ratio of 0.53.

Frontier Group (NASDAQ:ULCC - Get Free Report) last issued its earnings results on Thursday, May 1st. The company reported ($0.19) EPS for the quarter, topping analysts' consensus estimates of ($0.22) by $0.03. The company had revenue of $912.00 million for the quarter, compared to analysts' expectations of $996.05 million. Frontier Group had a net margin of 2.25% and a return on equity of 9.83%. The firm's revenue was up 5.4% compared to the same quarter last year. During the same quarter last year, the company earned ($0.09) EPS. On average, analysts expect that Frontier Group Holdings, Inc. will post 0.91 EPS for the current year.

Insiders Place Their Bets

In other news, SVP Alexandre Clerc sold 15,152 shares of the stock in a transaction that occurred on Friday, March 7th. The shares were sold at an average price of $6.63, for a total transaction of $100,457.76. Following the sale, the senior vice president now owns 23,912 shares in the company, valued at $158,536.56. This represents a 38.79% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Corporate insiders own 48.00% of the company's stock.

Hedge Funds Weigh In On Frontier Group

Several large investors have recently made changes to their positions in the business. Price T Rowe Associates Inc. MD raised its position in Frontier Group by 8.2% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 30,442 shares of the company's stock valued at $217,000 after purchasing an additional 2,296 shares during the period. Rhumbline Advisers grew its stake in Frontier Group by 4.4% in the fourth quarter. Rhumbline Advisers now owns 55,354 shares of the company's stock worth $394,000 after purchasing an additional 2,334 shares in the last quarter. Voleon Capital Management LP grew its stake in Frontier Group by 9.4% in the first quarter. Voleon Capital Management LP now owns 38,692 shares of the company's stock worth $168,000 after purchasing an additional 3,335 shares in the last quarter. R Squared Ltd purchased a new stake in shares of Frontier Group in the 4th quarter worth approximately $32,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in shares of Frontier Group by 8.4% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 75,359 shares of the company's stock worth $536,000 after purchasing an additional 5,834 shares during the period.

Frontier Group Company Profile

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.