Frontline (NYSE:FRO) Shares Gap Up - Time to Buy?

Key Points

• Frontline PLC shares gapped up from $22.66 to $23.47 before trading at $23.25, with a volume of 653,883 shares.
• The company reported a quarterly earnings per share (EPS) of $0.36, missing estimates of $0.42, and had revenue of $282.95 million compared to expectations of $328.71 million.
• Frontline announced a quarterly dividend of $0.36, with an annualized yield of 6.2%, set to be paid on September 24th.

Frontline PLC (NYSE:FRO - Get Free Report)'s share price gapped up prior to trading on Friday . The stock had previously closed at $22.66, but opened at $23.47. Frontline shares last traded at $23.25, with a volume of 653,883 shares changing hands.

Analyst Ratings Changes

A number of analysts have weighed in on the stock. Jefferies Financial Group reissued a "buy" rating and issued a $25.00 price target on shares of Frontline in a report on Friday, August 29th. BTIG Research increased their price target on shares of Frontline from $25.00 to $30.00 and gave the company a "buy" rating in a report on Wednesday. Finally, Wall Street Zen downgraded shares of Frontline from a "hold" rating to a "sell" rating in a report on Sunday, July 6th. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $21.87.

Frontline Stock Up 0.9%

The stock has a market capitalization of $5.31 billion, a P/E ratio of 22.32 and a beta of 0.25. The firm's fifty day moving average is $19.92 and its 200-day moving average is $17.82. The company has a current ratio of 1.88, a quick ratio of 1.88 and a debt-to-equity ratio of 1.38.

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

Frontline Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 24th. Investors of record on Friday, September 12th will be issued a dividend of $0.36 per share. This represents a $1.44 annualized dividend and a yield of 6.0%. The ex-dividend date of this dividend is Friday, September 12th. Frontline's dividend payout ratio (DPR) is currently 134.58%.

Hedge Funds Weigh In On Frontline

Several institutional investors have recently added to or reduced their stakes in the company. Osaic Holdings Inc. lifted its holdings in Frontline by 32.9% during the 2nd quarter. Osaic Holdings Inc. now owns 140,958 shares of the shipping company's stock valued at $2,314,000 after purchasing an additional 34,860 shares during the last quarter. Squarepoint Ops LLC increased its position in Frontline by 17,093.7% in the 2nd quarter. Squarepoint Ops LLC now owns 79,607 shares of the shipping company's stock valued at $1,306,000 after acquiring an additional 79,144 shares in the last quarter. State of Wyoming acquired a new stake in Frontline in the 2nd quarter valued at about $105,000. Moore Capital Management LP increased its position in Frontline by 83.6% in the 2nd quarter. Moore Capital Management LP now owns 141,544 shares of the shipping company's stock valued at $2,323,000 after acquiring an additional 64,438 shares in the last quarter. Finally, Merewether Investment Management LP acquired a new stake in Frontline in the 2nd quarter valued at about $5,246,000. 22.70% of the stock is owned by institutional investors.

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.