Frontline (NYSE:FRO) Shares Gap Up - Should You Buy?

Frontline plc (NYSE:FRO - Get Free Report) gapped up before the market opened on Friday . The stock had previously closed at $17.18, but opened at $17.77. Frontline shares last traded at $17.90, with a volume of 1,328,740 shares.

Analysts Set New Price Targets

Several brokerages have weighed in on FRO. Kepler Capital Markets set a $12.49 price target on Frontline in a report on Thursday, March 27th. Evercore ISI lowered their price objective on Frontline from $22.00 to $20.00 and set an "outperform" rating for the company in a research report on Tuesday, April 22nd. Two analysts have rated the stock with a sell rating, three have given a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat, Frontline has a consensus rating of "Moderate Buy" and an average target price of $20.62.

Frontline Trading Down 6.3%

The company has a debt-to-equity ratio of 1.44, a current ratio of 1.43 and a quick ratio of 1.43. The business's 50 day moving average is $16.12 and its 200 day moving average is $16.36. The stock has a market cap of $3.91 billion, a price-to-earnings ratio of 7.17 and a beta of 0.24.

Frontline (NYSE:FRO - Get Free Report) last released its quarterly earnings data on Friday, May 23rd. The shipping company reported $0.18 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.18. The business had revenue of $427.87 million during the quarter, compared to analysts' expectations of $252.26 million. Frontline had a return on equity of 19.25% and a net margin of 25.64%. The business's quarterly revenue was down 26.0% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.62 EPS. As a group, equities analysts expect that Frontline plc will post 1.78 earnings per share for the current fiscal year.

Frontline Cuts Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, March 31st. Stockholders of record on Friday, March 14th were issued a $0.20 dividend. This represents a $0.80 annualized dividend and a dividend yield of 4.56%. The ex-dividend date was Friday, March 14th. Frontline's payout ratio is 46.15%.

Hedge Funds Weigh In On Frontline

Several large investors have recently bought and sold shares of the stock. IHT Wealth Management LLC boosted its position in shares of Frontline by 5.2% in the 4th quarter. IHT Wealth Management LLC now owns 16,542 shares of the shipping company's stock valued at $235,000 after purchasing an additional 819 shares during the period. Signaturefd LLC boosted its holdings in shares of Frontline by 59.3% in the first quarter. Signaturefd LLC now owns 2,657 shares of the shipping company's stock valued at $39,000 after acquiring an additional 989 shares during the period. Swiss National Bank boosted its holdings in shares of Frontline by 0.6% in the fourth quarter. Swiss National Bank now owns 286,612 shares of the shipping company's stock valued at $3,953,000 after acquiring an additional 1,845 shares during the period. SVB Wealth LLC acquired a new stake in shares of Frontline in the first quarter valued at approximately $32,000. Finally, Jones Financial Companies Lllp acquired a new stake in Frontline during the 4th quarter worth $31,000. Institutional investors and hedge funds own 22.70% of the company's stock.

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.