Frontier Group (NASDAQ:ULCC) Stock Price Up 6.2% - Here's Why

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) rose 6.2% on Monday . The stock traded as high as $4.61 and last traded at $4.80. Approximately 408,875 shares changed hands during mid-day trading, a decline of 89% from the average daily volume of 3,770,352 shares. The stock had previously closed at $4.52.

Wall Street Analyst Weigh In

ULCC has been the topic of several analyst reports. Morgan Stanley dropped their target price 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. UBS Group dropped their target price 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. Finally, Bank of America dropped their target price 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. One investment analyst has rated the stock with a Buy rating and nine have issued a Hold rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $5.61.

Frontier Group Stock Down 1.8%

The firm has a market cap of $954.81 million, a price-to-earnings ratio of -26.16 and a beta of 2.62. The firm's fifty day moving average is $3.99 and its two-hundred day moving average is $4.76. The company has a debt-to-equity ratio of 0.53, a current ratio of 0.41 and a quick ratio of 0.36.

Frontier Group (NASDAQ:ULCC - Get Free Report) last posted its quarterly earnings data on Tuesday, August 5th. The company reported ($0.31) earnings per share for the quarter, missing the consensus estimate of ($0.28) by ($0.03). The company had revenue of $929.00 million during the quarter, compared to analyst estimates of $951.92 million. Frontier Group had a negative return on equity of 12.56% and a negative net margin of 0.87%.The business's revenue for the quarter was down 4.5% compared to the same quarter last year. During the same period in the previous year, the company earned $0.14 EPS. Frontier Group has set its Q3 2025 guidance at -0.420--0.260 EPS. On average, sell-side analysts expect that Frontier Group Holdings, Inc. will post 0.91 EPS for the current fiscal year.

Insiders Place Their Bets

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 value of $46,680.00. Following the completion of the sale, the senior vice president directly 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 transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 48.00% of the stock is owned by company insiders.

Institutional Investors Weigh In On Frontier Group

Institutional investors have recently added to or reduced their stakes in the company. Ameritas Investment Partners Inc. lifted its position in Frontier Group by 130.0% in the second 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 Frontier Group in the first quarter worth approximately $35,000. CWM LLC boosted its holdings 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 buying an additional 6,253 shares in the last quarter. Baron Wealth Management LLC bought a new stake in Frontier Group during the second quarter worth approximately $37,000. Finally, MQS Management LLC bought a new stake in Frontier Group during the second 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.