Frontier Group (NASDAQ:ULCC) Trading Up 15.9% - Should You Buy?

Key Points

• Frontier Group's stock saw a significant increase of 15.9%, trading at $3.84 following a prior closing of $3.31, despite a 73% drop in its trading volume.
• Analysts have lowered their price targets for Frontier Group, with Bank of America setting a neutral rating and a target of $4.00, while Morgan Stanley and UBS also reduced their expectations.
• In its latest quarterly earnings report, Frontier Group missed EPS estimates, reporting a loss of ($0.31) per share, along with a decline in revenue compared to the previous year.

Frontier Group Holdings, Inc. (NASDAQ:ULCC - Get Free Report) shares were up 15.9% during trading on Tuesday . The company traded as high as $3.71 and last traded at $3.84. Approximately 980,595 shares were traded during trading, a decline of 73% from the average daily volume of 3,665,944 shares. The stock had previously closed at $3.31.

Wall Street Analyst Weigh In

A number of research analysts have commented on ULCC shares. UBS Group reduced their price objective on Frontier Group from $4.00 to $3.50 and set a "neutral" rating on the stock in a research note on Wednesday, August 6th. Bank of America cut their price target on Frontier Group from $4.75 to $4.00 and set a "neutral" rating on the stock in a research note on Tuesday, July 1st. Finally, Morgan Stanley cut their price target on Frontier Group from $10.00 to $9.00 and set an "equal weight" rating on the stock in a research note on Monday, May 19th. Nine research analysts have rated the stock with a hold rating and one has issued a buy rating to the stock. According to MarketBeat, the company has an average rating of "Hold" and an average target price of $5.61.

Frontier Group Price Performance

The company has a 50 day simple moving average of $3.95 and a 200-day simple moving average of $4.84. The stock has a market cap of $1.03 billion, a price-to-earnings ratio of -28.25 and a beta of 2.62. The company has a quick ratio of 0.36, a current ratio of 0.41 and a debt-to-equity ratio of 0.53.

Frontier Group (NASDAQ:ULCC - Get Free Report) last announced its quarterly earnings data 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 firm had revenue of $929.00 million for the quarter, compared to analyst estimates of $951.92 million. During the same quarter in the previous year, the company earned $0.14 EPS. The company's quarterly revenue was down 4.5% compared to the same quarter last year. As a group, research analysts anticipate 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 Alexandre Clerc sold 12,000 shares of the company's stock in a transaction that occurred 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 sale, the senior vice president owned 11,912 shares in the company, valued at $46,337.68. This represents a 50.18% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. 48.00% of the stock is owned by insiders.

Institutional Trading of Frontier Group

Institutional investors and hedge funds have recently made changes to their positions in the stock. Ameritas Investment Partners Inc. raised 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 worth $31,000 after purchasing an additional 4,885 shares during the period. Byrne Asset Management LLC acquired a new stake in shares of Frontier Group during the 1st quarter worth approximately $35,000. CWM LLC raised 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 worth $36,000 after purchasing an additional 6,253 shares during the period. Baron Wealth Management LLC acquired a new stake in shares of Frontier Group during the 2nd quarter worth approximately $37,000. Finally, MQS Management LLC acquired a new stake in shares of Frontier Group during the 2nd quarter worth approximately $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.