Frontier Group (NASDAQ:ULCC) Trading 6.2% Higher - Should You Buy?

Key Points

• Frontier Group's stock price rose 6.2%, trading at $4.80 after a previous close of $4.52, with significantly lower trading volume compared to average levels.
• Equities analysts have downgraded Frontier Group's target prices, with Bank of America lowering its target from $4.75 to $4.00, indicating a "neutral" rating.
• The company reported a loss of $0.31 per share for the last quarter, missing expectations and reflecting a 4.5% drop in revenue year-over-year.

Frontier Group Holdings, Inc. (NASDAQ:ULCC - Get Free Report)'s share price shot up 6.2% during trading on Monday . The stock traded as high as $4.61 and last traded at $4.80. 408,875 shares changed hands during trading, a decline of 89% from the average session volume of 3,770,352 shares. The stock had previously closed at $4.52.

Analyst Ratings Changes

A number of equities analysts have issued reports on the company. Bank of America lowered their price target 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. 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. Finally, UBS Group lowered their price target on Frontier Group from $4.00 to $3.50 and set a "neutral" rating on the stock in a research report on Wednesday, August 6th. One equities research analyst has rated the stock with a Buy rating and nine have issued a Hold rating to the company. According to data from MarketBeat, Frontier Group presently has an average rating of "Hold" and an average price target of $5.61.

Frontier Group Stock Performance

The firm has a market cap of $1.04 billion, a PE ratio of -28.50 and a beta of 2.62. The firm has a 50-day moving average price of $4.02 and a two-hundred day moving average price of $4.71. 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 posted 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 net margin of 0.87% and a negative return on equity of 12.56%. The company had revenue of $929.00 million during the quarter, compared to analyst estimates of $951.92 million. During the same period in the prior year, the business posted $0.14 EPS. Frontier Group'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. Research analysts forecast that Frontier Group Holdings, Inc. will post 0.91 EPS for the current fiscal year.

Insider Transactions at Frontier Group

In other news, SVP Alexandre Clerc sold 12,000 shares of Frontier Group stock in a transaction on Monday, June 2nd. The stock was sold at an average price of $3.89, for a total value of $46,680.00. Following the completion of the sale, the senior vice president directly owned 11,912 shares of the company's stock, valued at approximately $46,337.68. The trade was a 50.18% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. 48.00% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Frontier Group

A number of institutional investors have recently modified their holdings of ULCC. Byrne Asset Management LLC purchased a new position in Frontier Group in the first quarter valued at $35,000. Ameritas Investment Partners Inc. boosted its holdings in Frontier Group by 130.0% in the second 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 period. CWM LLC boosted its holdings in Frontier Group by 165.0% in the second 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 period. Baron Wealth Management LLC purchased a new position in Frontier Group in the second quarter valued at $37,000. Finally, MQS Management LLC purchased a new position in Frontier Group in 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.