Frontier Group (NASDAQ:ULCC) Stock Price Up 15.9% - Time to 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.

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

Analyst Ratings Changes

ULCC has been the topic of several research analyst reports. Morgan Stanley decreased their target price on shares of 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. Bank of America decreased their price target on shares of Frontier Group from $4.75 to $4.00 and set a "neutral" rating on the stock in a report on Tuesday, July 1st. Finally, UBS Group dropped their price objective on Frontier Group from $4.00 to $3.50 and set a "neutral" rating for the company in a report on Wednesday, August 6th. Nine investment analysts have rated the stock with a hold rating and one has assigned a buy rating to the company. According to MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $5.61.

Frontier Group Stock Performance

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

Frontier Group (NASDAQ:ULCC - Get Free Report) last released its quarterly earnings results on Tuesday, August 5th. The company reported ($0.31) EPS for the quarter, missing the consensus estimate of ($0.28) by ($0.03). Frontier Group had a negative return on equity of 12.56% and a negative net margin of 0.87%. The company had revenue of $929.00 million for the quarter, compared to analyst estimates of $951.92 million. During the same period last year, the firm posted $0.14 earnings per share. The business's revenue was down 4.5% on a year-over-year basis. As a group, analysts predict that Frontier Group Holdings, Inc. will post 0.91 EPS for the current year.

Insider Buying and Selling at Frontier Group

In related news, SVP Alexandre Clerc sold 12,000 shares of Frontier Group stock in a transaction on Monday, June 2nd. The shares were 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 of the company's stock, valued at $46,337.68. The trade was a 50.18% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Company insiders own 48.00% of the company's stock.

Institutional Trading of Frontier Group

Several large investors have recently modified their holdings of ULCC. Byrne Asset Management LLC bought a new position in Frontier Group during the 1st quarter worth approximately $35,000. 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 valued at $31,000 after acquiring an additional 4,885 shares in the last quarter. CWM LLC lifted its stake in Frontier Group by 165.0% during the second 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 last quarter. Baron Wealth Management LLC acquired a new position in Frontier Group in the second quarter worth $37,000. Finally, MQS Management LLC bought a new stake in Frontier Group during the second quarter valued at $37,000.

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.