Frontline (NYSE:FRO) Shares Down 5% - Here's What Happened

Key Points

• Frontline PLC (NYSE:FRO) shares fell by 5%, closing at $21.82, with a trading volume significantly down by 82% from average daily volumes.
• Analysts maintain a largely positive outlook, with a mix of ratings; Jefferies set a target price of $25.00, while BTIG Research increased it to $30.00.
• The company reported earnings of $0.36 per share, missing analysts' expectations, with revenues of $282.95 million, below the anticipated $328.71 million.

Frontline PLC (NYSE:FRO - Get Free Report) dropped 5% on Tuesday . The stock traded as low as $22.10 and last traded at $21.82. Approximately 529,935 shares changed hands during mid-day trading, a decline of 82% from the average daily volume of 2,908,148 shares. The stock had previously closed at $22.98.

Analysts Set New Price Targets

FRO has been the topic of several analyst reports. Jefferies Financial Group restated a "buy" rating and issued a $25.00 price objective on shares of Frontline in a report on Friday, August 29th. Wall Street Zen upgraded shares of Frontline from a "sell" rating to a "hold" rating in a report on Friday, September 26th. Weiss Ratings reiterated a "hold (c+)" rating on shares of Frontline in a report on Saturday, September 27th. Finally, BTIG Research increased their target price on shares of Frontline from $25.00 to $30.00 and gave the stock a "buy" rating in a report on Wednesday, September 17th. Three investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Frontline presently has a consensus rating of "Hold" and an average price target of $21.87.

Frontline Trading Down 6.0%

The business's 50 day moving average price is $21.24 and its 200-day moving average price is $18.54. The company has a current ratio of 1.88, a quick ratio of 1.88 and a debt-to-equity ratio of 1.38. The company has a market cap of $4.81 billion, a price-to-earnings ratio of 20.21 and a beta of 0.20.

Frontline (NYSE:FRO - Get Free Report) last posted its earnings results on Friday, August 29th. The shipping company reported $0.36 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.42 by ($0.06). Frontline had a return on equity of 10.27% and a net margin of 12.94%.The company had revenue of $282.95 million for the quarter, compared to analyst estimates of $328.71 million. During the same quarter in the prior year, the business posted $0.62 EPS. The business's quarterly revenue was up 34.2% compared to the same quarter last year. On average, equities analysts anticipate that Frontline PLC will post 1.78 EPS for the current fiscal year.

Frontline Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 24th. Stockholders of record on Friday, September 12th were given a $0.36 dividend. The ex-dividend date was Friday, September 12th. This represents a $1.44 annualized dividend and a dividend yield of 6.7%. Frontline's payout ratio is presently 134.58%.

Hedge Funds Weigh In On Frontline

Several hedge funds and other institutional investors have recently made changes to their positions in FRO. Encompass Capital Advisors LLC bought a new stake in shares of Frontline during the 1st quarter valued at approximately $45,026,000. Marshall Wace LLP grew its holdings in shares of Frontline by 155.1% during the 2nd quarter. Marshall Wace LLP now owns 1,692,537 shares of the shipping company's stock valued at $27,775,000 after purchasing an additional 1,029,034 shares during the last quarter. Corigliano Investment Advisers LLC bought a new stake in shares of Frontline during the 1st quarter valued at approximately $12,002,000. SG Americas Securities LLC grew its holdings in shares of Frontline by 274.3% during the 2nd quarter. SG Americas Securities LLC now owns 877,529 shares of the shipping company's stock valued at $14,400,000 after purchasing an additional 643,100 shares during the last quarter. Finally, Bank of New York Mellon Corp grew its holdings in shares of Frontline by 761.8% during the 1st quarter. Bank of New York Mellon Corp now owns 648,836 shares of the shipping company's stock valued at $9,635,000 after purchasing an additional 573,544 shares during the last quarter. 22.70% of the stock is currently owned by institutional investors and hedge funds.

Frontline Company Profile

Frontline plc, a shipping company, engages in the seaborne transportation of crude oil and oil products worldwide. It owns and operates oil and product tankers. As of December 31, 2022, the company operated a fleet of 70 vessels. It is also involved in the charter, purchase, and sale of vessels. The company was founded in 1985 and is based in Limassol, Cyprus.

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