Frontier Group (NASDAQ:ULCC) Trading 12.2% Higher on Analyst Upgrade

Key Points

• Shares rallied 12.2% after Susquehanna raised its price target from $3.40 to $4.50 while maintaining a neutral rating; the stock traded as high as $5.37 intraday on below-average volume.
• Analyst sentiment is mostly negative — five Holds and three Sells — with a MarketBeat consensus rating of "Reduce" and a consensus target price of $5.06.
• Frontier beat Q1 estimates (EPS of -$0.30 vs. -$0.37 and revenue $1.07B vs. $1.04B) but remains unprofitable with negative margins and guided Q2 EPS of -$0.60 to -$0.45.

Frontier Group Holdings, Inc. (NASDAQ:ULCC - Get Free Report)'s share price traded up 12.2% on Thursday after Susquehanna raised their price target on the stock from $3.40 to $4.50. Susquehanna currently has a neutral rating on the stock. Frontier Group traded as high as $5.20 and last traded at $5.3650. 1,135,525 shares traded hands during mid-day trading, a decline of 76% from the average session volume of 4,803,452 shares. The stock had previously closed at $4.78.

A number of other brokerages have also issued reports on ULCC. UBS Group dropped their target price on shares of Frontier Group from $6.00 to $4.00 and set a "neutral" rating on the stock in a research report on Monday, March 16th. 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. Wall Street Zen raised shares of Frontier Group from a "strong sell" rating to a "sell" rating in a report on Saturday, May 2nd. Deutsche Bank Aktiengesellschaft downgraded shares of Frontier Group from a "buy" rating to a "hold" rating and set a $6.00 target price on the stock. in a research report on Tuesday, February 10th. Finally, Citigroup increased their price target on shares of Frontier Group from $3.50 to $4.90 and gave the company a "neutral" rating in a research report on Monday. Five research analysts have rated the stock with a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Reduce" and a consensus target price of $5.06.

Insider Buying and Selling at Frontier Group

In other 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 sale, the senior vice president owned 94,926 shares of the company's stock, valued at approximately $569,556. This trade represents a 5.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 48.00% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Caitong International Asset Management Co. Ltd bought a new position in shares of Frontier Group in the third quarter worth $27,000. Quarry LP bought a new position in shares of Frontier Group in the fourth quarter worth $34,000. Atlas Wealth LLC bought a new position in shares of Frontier Group in the first quarter worth $33,000. Brooklyn Investment Group increased its position 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 purchasing an additional 9,078 shares during the period. Finally, Wealth Enhancement Advisory Services LLC bought a new position in Frontier Group in the third quarter valued at about $49,000.

Frontier Group Stock Performance

The company has a debt-to-equity ratio of 0.73, a current ratio of 0.46 and a quick ratio of 0.41. The stock has a 50-day simple moving average of $3.82 and a 200-day simple moving average of $4.44. The stock has a market cap of $1.24 billion, a P/E ratio of -3.33 and a beta of 2.41.

Frontier Group (NASDAQ:ULCC - Get Free Report) last released its earnings results on Tuesday, May 5th. The company reported ($0.30) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.37) by $0.07. The firm had revenue of $1.07 billion for the quarter, compared to analysts' expectations of $1.04 billion. Frontier Group had a negative return on equity of 33.96% and a negative net margin of 9.62%.The business's revenue for the quarter was up 16.8% on a year-over-year basis. During the same quarter in the previous year, the business posted ($0.19) earnings per share. Frontier Group has set its Q2 2026 guidance at -0.600--0.45 EPS. Research analysts forecast that Frontier Group Holdings, Inc. will post -1.24 earnings per share for the current year.

Frontier Group Company Profile

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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