Frontier Group (NASDAQ:ULCC) Trading Up 12.7% - What's Next?

Key Points

• Stock jumped 12.7% on Friday to last trade at $4.09, but trading volume was about 947,440 shares — roughly 79% below its average daily volume.
• Wall Street sentiment is weak: the consensus rating is "Reduce" with an average price target of $4.93 after multiple downgrades and a mix of Hold and Sell recommendations.
• Frontier beat the quarter (EPS $0.23 vs. $0.10 est.; revenue $997M vs. $971.4M est.) but issued negative FY2026 guidance (-0.40 to -0.50 EPS) and Q1 guidance (-0.44 to -0.26), with analysts projecting -1.39 EPS for the year.

Frontier Group Holdings, Inc. (NASDAQ:ULCC - Get Free Report)'s stock price was up 12.7% during trading on Friday . The company traded as high as $3.72 and last traded at $4.0920. Approximately 947,440 shares traded hands during trading, a decline of 79% from the average daily volume of 4,499,176 shares. The stock had previously closed at $3.63.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on ULCC shares. Deutsche Bank Aktiengesellschaft cut Frontier Group from a "buy" rating to a "hold" rating and set a $6.00 price target on the stock. in a research note on Tuesday, February 10th. Bank of America reiterated an "underperform" rating and issued a $4.00 price objective (down from $5.00) on shares of Frontier Group in a research note on Tuesday, January 6th. Susquehanna increased their price objective on Frontier Group from $4.00 to $5.00 and gave the company a "neutral" rating in a research note on Friday, January 9th. Citigroup reduced their price objective on Frontier Group from $5.00 to $3.50 and set a "neutral" rating on the stock in a research note on Friday, March 20th. Finally, Barclays reiterated an "underweight" rating and issued a $4.00 price objective (down from $6.00) on shares of Frontier Group in a research note on Monday, March 2nd. Five equities research analysts have rated the stock with a Hold rating and three have issued a Sell rating to the company's stock. According to data from MarketBeat.com, Frontier Group currently has a consensus rating of "Reduce" and an average price target of $4.93.

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 company has a market capitalization of $926.73 million, a price-to-earnings ratio of -6.63 and a beta of 2.57. The stock has a 50 day simple moving average of $3.84 and a two-hundred day simple moving average of $4.43.

Frontier Group (NASDAQ:ULCC - Get Free Report) last posted its quarterly earnings results on Wednesday, February 11th. The company reported $0.23 earnings per share for the quarter, beating analysts' consensus estimates of $0.10 by $0.13. The company had revenue of $997.00 million for the quarter, compared to analysts' expectations of $971.35 million. Frontier Group had a negative return on equity of 27.39% and a negative net margin of 3.68%.Frontier Group's quarterly revenue was down .5% on a year-over-year basis. During the same period last year, the firm earned $0.23 earnings per share. Frontier Group has set its FY 2026 guidance at -0.400-0.500 EPS and its Q1 2026 guidance at -0.440--0.260 EPS. As a group, analysts anticipate that Frontier Group Holdings, Inc. will post -1.39 earnings per share for the current year.

Insider Activity

In other Frontier Group news, SVP Steve Schuller sold 5,000 shares of the firm's stock in a transaction dated Friday, February 6th. The stock was sold at an average price of $6.00, for a total transaction of $30,000.00. Following the transaction, 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 sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders own 48.00% of the company's stock.

Hedge Funds Weigh In On Frontier Group

Several hedge funds have recently made changes to their positions in ULCC. Balyasny Asset Management L.P. purchased a new position in shares of Frontier Group during the second quarter worth about $5,387,000. Mountaineer Partners Management LLC purchased a new position in shares of Frontier Group during the fourth quarter worth about $4,490,000. Bank of America Corp DE grew its holdings in shares of Frontier Group by 39.2% during the third quarter. Bank of America Corp DE now owns 3,027,309 shares of the company's stock worth $13,366,000 after purchasing an additional 852,798 shares during the last quarter. HRT Financial LP grew its holdings in shares of Frontier Group by 932.1% during the fourth quarter. HRT Financial LP now owns 817,425 shares of the company's stock worth $3,850,000 after purchasing an additional 738,228 shares during the last quarter. Finally, First Trust Advisors LP purchased a new position in shares of Frontier Group during the fourth quarter worth about $3,351,000.

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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