Frontier Group (NASDAQ:ULCC) Upgraded at Zacks Research

Key Points

• Zacks Research upgraded Frontier Group from “hold” to “strong buy,” although the broader analyst consensus remains “reduce,” with an average price target of $6.86.
• Frontier’s latest quarter beat expectations: adjusted loss per share was $0.10 versus the $0.47 consensus loss, while revenue rose 37.7% year over year to $1.28 billion.
• The company issued improved near-term guidance, including Q3 adjusted EPS ranging from a $0.10 loss to a $0.10 profit and Q4 guidance from breakeven to $0.20 per share, but analysts still expect a full-year loss and Frontier continues to report negative margins.

Frontier Group (NASDAQ:ULCC - Get Free Report) was upgraded by stock analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a note issued to investors on Wednesday,Zacks.com reports.

A number of other equities research analysts also recently issued reports on the company. UBS Group increased their price objective on Frontier Group from $4.00 to $7.00 and gave the stock a "neutral" rating in a research report on Tuesday, June 23rd. Susquehanna lifted their price objective on Frontier Group from $4.50 to $7.00 and gave the company a "neutral" rating in a research note on Tuesday, July 7th. Wall Street Zen upgraded Frontier Group from a "sell" rating to a "hold" rating in a research report on Sunday, June 21st. Citigroup upped their target price on Frontier Group from $5.00 to $9.00 and gave the stock a "neutral" rating in a research note on Friday, June 26th. Finally, Barclays raised their price target on Frontier Group from $4.00 to $7.00 and gave the company an "underweight" rating in a report on Thursday, June 25th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Hold rating and three have given a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of "Reduce" and an average target price of $6.86.

Frontier Group Price Performance

Shares of NASDAQ:ULCC opened at $6.98 on Wednesday. The company has a 50 day moving average of $6.54 and a 200 day moving average of $5.18. The company has a current ratio of 0.49, a quick ratio of 0.44 and a debt-to-equity ratio of 1.75. The stock has a market cap of $1.60 billion, a P/E ratio of -4.15 and a beta of 2.56. Frontier Group has a 12 month low of $3.02 and a 12 month high of $8.40.

Frontier Group (NASDAQ:ULCC - Get Free Report) last posted its earnings results on Wednesday, July 29th. The company reported ($0.10) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.47) by $0.37. Frontier Group had a negative net margin of 9.29% and a negative return on equity of 29.82%. The business had revenue of $1.28 billion for the quarter, compared to analysts' expectations of $1.22 billion. During the same period in the prior year, the company posted ($0.31) EPS. The business's revenue for the quarter was up 37.7% compared to the same quarter last year. Frontier Group has set its Q4 2026 guidance at 0.000-0.200 EPS and its Q3 2026 guidance at -0.100-0.100 EPS. As a group, sell-side analysts forecast that Frontier Group will post -0.74 EPS for the current fiscal year.

Insider Transactions at Frontier Group

In other news, SVP Steve Schuller sold 10,000 shares of the stock in a transaction dated Friday, June 5th. The stock was sold at an average price of $6.00, for a total transaction of $60,000.00. Following the transaction, the senior vice president directly owned 97,175 shares in the company, valued at approximately $583,050. This represents a 9.33% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CAO Josh A. Wetzel sold 13,500 shares of the company's stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $4.75, for a total value of $64,125.00. Following the completion of the sale, the chief accounting officer directly owned 12,061 shares of the company's stock, valued at approximately $57,289.75. This represents a 52.81% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 11,811,670 shares of company stock worth $84,843,756. Company insiders own 48.00% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of ULCC. Caitong International Asset Management Co. Ltd purchased a new position in shares of Frontier Group in the third quarter worth about $27,000. Atlas Wealth LLC purchased a new stake in shares of Frontier Group during the first quarter valued at approximately $33,000. Quarry LP purchased a new stake in shares of Frontier Group during the fourth quarter valued at approximately $34,000. Brooklyn Investment Group boosted its stake in shares of Frontier Group by 490.7% during the third quarter. Brooklyn Investment Group now owns 10,928 shares of the company's stock valued at $48,000 after purchasing an additional 9,078 shares during the period. Finally, Y Intercept Hong Kong Ltd bought a new position in shares of Frontier Group in the first quarter worth approximately $60,000.

Key Frontier Group News

Here are the key news stories impacting Frontier Group this week:

• Positive Sentiment: Q2 results significantly beat expectations. Frontier reported an adjusted loss of $0.10 per share, compared with the consensus estimate of a $0.47 loss and a $0.31 loss in the prior-year quarter. Revenue reached a record approximately $1.3 billion, up 38% year over year and ahead of the $1.22 billion analyst estimate. Frontier Airlines Q2 2026 results
• Positive Sentiment: Improved guidance supports the bullish reaction. Frontier expects a third-quarter adjusted EPS result between a $0.10 loss and $0.10 profit, better than the consensus estimate of a $0.24 loss. Fourth-quarter guidance ranges from breakeven to $0.20 per share, while the company is targeting roughly 7% capacity growth. Frontier Q4 guidance
• Positive Sentiment: Management said key operating metrics are improving as its transformation plan takes hold, providing evidence that initiatives aimed at strengthening the airline’s financial performance are beginning to work. Frontier operating metrics update
• Neutral Sentiment: The outlook is improving but not yet consistently profitable: Q3 guidance spans a loss to a profit, and Q4 guidance begins at breakeven. Analysts still expect a full-year loss.
• Negative Sentiment: Frontier continues to report negative net margins and return on equity, while its planned capacity growth could pressure fares and profitability if demand does not keep pace.

About Frontier Group

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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