Investors Buy High Volume of Frontier Group Call Options (NASDAQ:ULCC)

Key Points

• On Tuesday, Frontier Group experienced a significant jump in options trading, with a 247% increase in call options, totaling 3,680 options compared to an average of 1,061.
• Multiple analysts have varied opinions on Frontier Group, with Bank of America lowering its price target from $4.75 to $4.00, while Deutsche Bank upgraded it from "hold" to "buy" with a new target of $8.00.
• The company's latest earnings report showed a miss with an EPS of (0.31), missing estimates and indicating a 4.5% revenue decrease year-over-year, prompting analysts to anticipate a current fiscal year EPS of 0.91.

Frontier Group Holdings, Inc. (NASDAQ:ULCC - Get Free Report) was the recipient of some unusual options trading activity on Tuesday. Traders bought 3,680 call options on the stock. Thisrepresentsanincreaseofapproximately247% compared to the typical daily volume of 1,061 call options.

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on the stock. Morgan Stanley dropped their price objective on shares of Frontier Group from $10.00 to $9.00 and set an "equal weight" rating for the company in a research report on Monday, May 19th. Deutsche Bank Aktiengesellschaft raised shares of Frontier Group from a "hold" rating to a "buy" rating and upped their price target for the stock from $4.00 to $8.00 in a research report on Tuesday. UBS Group lowered their price target on Frontier Group from $4.00 to $3.50 and set a "neutral" rating for the company in a report on Wednesday, August 6th. Finally, Bank of America cut their price objective 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. Two investment analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $5.61.

Frontier Group Stock Down 7.2%

NASDAQ:ULCC traded down $0.40 on Thursday, reaching $5.18. The stock had a trading volume of 6,099,179 shares, compared to its average volume of 4,827,025. The company has a 50-day moving average of $4.28 and a 200 day moving average of $4.46. The company has a current ratio of 0.41, a quick ratio of 0.36 and a debt-to-equity ratio of 0.53. The stock has a market cap of $1.18 billion, a P/E ratio of -32.38 and a beta of 2.63. Frontier Group has a 12-month low of $2.89 and a 12-month high of $10.26.

Frontier Group (NASDAQ:ULCC - Get Free Report) last announced its earnings results 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). Frontier Group had a negative net margin of 0.87% and a negative return on equity of 12.56%. The business had revenue of $929.00 million for the quarter, compared to analyst estimates of $951.92 million. During the same quarter in the prior year, the business earned $0.14 earnings per share. The firm's revenue was down 4.5% on a year-over-year basis. Frontier Group has set its Q3 2025 guidance at -0.420--0.260 EPS. On average, research analysts predict that Frontier Group will post 0.91 earnings per share for the current year.

Institutional Investors Weigh In On Frontier Group

A number of hedge funds have recently bought and sold shares of the business. Ameritas Investment Partners Inc. raised its position in shares of Frontier Group by 130.0% in the 2nd 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 in the last quarter. Byrne Asset Management LLC acquired a new stake in shares of Frontier Group during the first quarter worth approximately $35,000. CWM LLC increased its stake in shares of Frontier Group by 165.0% in 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 during the last quarter. Baron Wealth Management LLC acquired a new stake in Frontier Group in the second quarter valued at $37,000. Finally, MQS Management LLC bought a new position in Frontier Group during the 2nd quarter valued at $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.