Frontier Group (NASDAQ:ULCC) Trading Down 4.1% - Should You Sell?

Key Points

• Frontier Group's stock fell by 4.1% on Friday, trading as low as $5.06, with trading volume down significantly at approximately 721,574 shares compared to an average of 3.8 million shares.
• Multiple analysts have issued reports with mixed outlooks; while Bank of America lowered its target price from $4.75 to $4.00, Deutsche Bank upgraded its rating and raised the target from $4.00 to $8.00.
• The company reported a quarterly loss of ($0.31) EPS, missing estimates, with revenues of $929 million, down 4.5% from the same quarter last year.

Frontier Group Holdings, Inc. (NASDAQ:ULCC - Get Free Report)'s stock price fell 4.1% on Friday . The company traded as low as $5.13 and last traded at $5.06. 721,574 shares were traded during trading, a decline of 81% from the average session volume of 3,848,353 shares. The stock had previously closed at $5.27.

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on ULCC. Bank of America lowered their target price on Frontier Group from $4.75 to $4.00 and set a "neutral" rating on the stock in a research report on Tuesday, July 1st. Deutsche Bank Aktiengesellschaft raised Frontier Group from a "hold" rating to a "buy" rating and increased their price target for the company from $4.00 to $8.00 in a research report on Tuesday, September 2nd. Finally, UBS Group lowered their price target on Frontier Group from $4.00 to $3.50 and set a "neutral" rating for the company in a research report on Wednesday, August 6th. Two research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average price target of $5.81.

Frontier Group Stock Up 3.7%

The firm has a 50-day moving average price of $4.56 and a 200-day moving average price of $4.23. The company has a debt-to-equity ratio of 0.53, a quick ratio of 0.36 and a current ratio of 0.41.

Frontier Group (NASDAQ:ULCC - Get Free Report) last announced its earnings results on Tuesday, August 5th. The company reported ($0.31) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.28) by ($0.03). Frontier Group had a negative net margin of 0.87% and a negative return on equity of 12.56%. The business had revenue of $929.00 million for the quarter, compared to analysts' expectations of $951.92 million. During the same period in the prior year, the business earned $0.14 earnings per share. The company's revenue for the quarter was down 4.5% compared to the same quarter last year. Frontier Group has set its Q3 2025 guidance at -0.420--0.260 EPS. Equities analysts expect that Frontier Group Holdings, Inc. will post 0.91 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Frontier Group

Large investors have recently made changes to their positions in the business. Byrne Asset Management LLC purchased a new stake in shares of Frontier Group during the 1st quarter valued at $35,000. Ameritas Investment Partners Inc. increased its position in shares of Frontier Group by 130.0% during the 2nd quarter. Ameritas Investment Partners Inc. now owns 8,643 shares of the company's stock valued at $31,000 after purchasing an additional 4,885 shares during the last quarter. CWM LLC increased its position in shares of Frontier Group by 165.0% during the 2nd quarter. CWM LLC now owns 10,042 shares of the company's stock valued at $36,000 after purchasing an additional 6,253 shares during the last quarter. Baron Wealth Management LLC purchased a new stake in shares of Frontier Group during the 2nd quarter valued at $37,000. Finally, MQS Management LLC bought a new position in shares of Frontier Group during the 2nd quarter worth $37,000.

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.