Frontline (NYSE:FRO) Shares Gap Down - Here's Why

Key Points

• Frontline PLC shares gapped down significantly, opening at $21.31 after a previous close of $22.79, with the last trade reported at $21.63.
• Analyst ratings for Frontline are mixed; with BTIG Research upgrading their price target to $30 and three analysts rating it as a "buy" while others have "hold" or "sell" ratings.
• The company declared a quarterly dividend of $0.36 per share, representing a 6.5% yield, but has a high dividend payout ratio of 134.58%.

Frontline PLC (NYSE:FRO - Get Free Report)'s stock price gapped down before the market opened on Tuesday . The stock had previously closed at $22.79, but opened at $21.31. Frontline shares last traded at $21.63, with a volume of 995,004 shares.

Analyst Ratings Changes

FRO has been the topic of several recent analyst reports. BTIG Research boosted their price target on Frontline from $25.00 to $30.00 and gave the company a "buy" rating in a research note on Wednesday, September 17th. Jefferies Financial Group reaffirmed a "buy" rating and set a $25.00 target price on shares of Frontline in a research report on Friday, August 29th. Wall Street Zen raised Frontline from a "sell" rating to a "hold" rating in a research report on Friday, September 26th. Finally, Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Frontline in a research report on Wednesday, October 8th. Three analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $21.87.

Frontline Price Performance

The stock has a market cap of $4.94 billion, a P/E ratio of 20.74 and a beta of 0.20. The company has a debt-to-equity ratio of 1.38, a quick ratio of 1.88 and a current ratio of 1.88. The business has a 50 day simple moving average of $21.60 and a 200-day simple moving average of $18.79.

Frontline (NYSE:FRO - Get Free Report) last announced its quarterly earnings data 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). The business had revenue of $282.95 million during the quarter, compared to the consensus estimate of $328.71 million. Frontline had a net margin of 12.94% and a return on equity of 10.27%. The firm's revenue for the quarter was up 34.2% compared to the same quarter last year. During the same quarter last year, the company earned $0.62 EPS. On average, sell-side analysts forecast that Frontline PLC will post 1.78 EPS for the current year.

Frontline Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, September 24th. Stockholders of record on Friday, September 12th were paid a dividend of $0.36 per share. The ex-dividend date was Friday, September 12th. This represents a $1.44 annualized dividend and a dividend yield of 6.5%. Frontline's dividend payout ratio is presently 134.58%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in FRO. Financial Gravity Companies Inc. bought a new position in shares of Frontline during the 2nd quarter worth $25,000. SVB Wealth LLC bought a new position in shares of Frontline during the 1st quarter worth $32,000. Thurston Springer Miller Herd & Titak Inc. bought a new position in shares of Frontline during the 2nd quarter worth $33,000. Bayforest Capital Ltd bought a new position in shares of Frontline during the 1st quarter worth $34,000. Finally, Signaturefd LLC grew its stake in shares of Frontline by 59.3% during the 1st quarter. Signaturefd LLC now owns 2,657 shares of the shipping company's stock worth $39,000 after acquiring an additional 989 shares during the period. Institutional investors own 22.70% of the company's stock.

About Frontline

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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