Frontier Group (NASDAQ:ULCC) Stock Price Up 6.3% - Should You Buy?

Key Points

• Frontier Group Holdings, Inc. experienced a stock price increase of 6.3%, closing at $4.81 after trading as high as $4.93 on Tuesday.
• Analysts' target prices have been revised, with Morgan Stanley lowering it to $9.00 and UBS Group setting a target price of $4.00, indicating a mixed outlook for the stock.
• The company reported an earnings per share (EPS) of ($0.19), surpassing expectations and showing a 5.4% revenue increase compared to the previous year.

Frontier Group Holdings, Inc. (NASDAQ:ULCC - Get Free Report) shares were up 6.3% during mid-day trading on Tuesday . The stock traded as high as $4.93 and last traded at $4.81. Approximately 733,731 shares changed hands during trading, a decline of 79% from the average daily volume of 3,577,615 shares. The stock had previously closed at $4.52.

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on the company. Barclays lowered their price target on Frontier Group from $14.00 to $10.00 and set an "overweight" rating on the stock in a research report on Tuesday, April 8th. Evercore ISI lowered their price target on Frontier Group from $7.00 to $5.00 and set an "in-line" rating on the stock in a research report on Friday, April 11th. Citigroup lowered their price target on Frontier Group from $7.25 to $4.00 and set a "neutral" rating on the stock in a research report on Friday, April 11th. Susquehanna lowered their price target on Frontier Group from $9.00 to $3.00 and set a "neutral" rating on the stock in a research report on Monday, April 7th. Finally, Morgan Stanley lowered their price target on Frontier Group from $10.00 to $9.00 and set an "equal weight" rating on the stock in a research report on Monday, May 19th. Nine analysts have rated the stock with a hold rating and one has given a buy rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and an average target price of $5.67.

Frontier Group Stock Down 9.4%

The stock has a 50-day moving average of $3.98 and a 200-day moving average of $5.15. The firm has a market cap of $904.21 million, a price-to-earnings ratio of 13.69 and a beta of 2.62. The company has a debt-to-equity ratio of 0.48, a current ratio of 0.49 and a quick ratio of 0.45.

Frontier Group (NASDAQ:ULCC - Get Free Report) last announced its quarterly earnings results on Thursday, May 1st. The company reported ($0.19) EPS for the quarter, beating analysts' consensus estimates of ($0.22) by $0.03. Frontier Group had a return on equity of 5.53% and a net margin of 1.78%. The company had revenue of $912.00 million during the quarter, compared to analysts' expectations of $996.05 million. During the same period in the prior year, the company earned ($0.09) EPS. Frontier Group's revenue was up 5.4% compared to the same quarter last year. Sell-side analysts predict that Frontier Group Holdings, Inc. will post 0.91 EPS for the current fiscal year.

Insider Activity at Frontier Group

In related news, SVP Alexandre Clerc sold 12,000 shares of the firm's stock in a transaction on Monday, June 2nd. The stock was sold at an average price of $3.89, for a total transaction of $46,680.00. Following the completion of the transaction, the senior vice president directly owned 11,912 shares of the company's stock, valued at $46,337.68. This trade represents a 50.18% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 48.00% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Wealth Enhancement Advisory Services LLC raised its position in Frontier Group by 71.8% during the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 18,061 shares of the company's stock worth $78,000 after purchasing an additional 7,546 shares during the last quarter. Legal & General Group Plc raised its position in Frontier Group by 54.4% during the 4th quarter. Legal & General Group Plc now owns 49,832 shares of the company's stock worth $354,000 after purchasing an additional 17,558 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in Frontier Group by 8.4% during 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 last quarter. Dimensional Fund Advisors LP raised its position in Frontier Group by 210.4% during the 4th quarter. Dimensional Fund Advisors LP now owns 804,693 shares of the company's stock worth $5,721,000 after purchasing an additional 545,485 shares during the last quarter. Finally, Barclays PLC raised its position in Frontier Group by 12.1% during the 4th quarter. Barclays PLC now owns 81,710 shares of the company's stock worth $581,000 after purchasing an additional 8,844 shares during the last quarter.

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.