Frontline (NYSE:FRO) Shares Pass Above 200-Day Moving Average - Here's What Happened

Key Points

• Technical breakout: Frontline shares passed above their 200-day moving average of $28.37, trading as high as $36.88 and last at $36.53 on volume of about 2.07 million shares.
• Mixed analyst view: Three analysts rate the stock a Buy and four a Hold, producing an average "Hold" rating and a mean price target of $39, with BTIG recently raising its target to $45.
• Dividend spike and financials: Frontline reported $1.03 EPS (below estimates) and revenue up 46.7% YoY, and raised its quarterly dividend to $1.03 (annualized $4.12), yielding 11.3% but with a high payout ratio of 242% that may be unsustainable.

Frontline PLC (NYSE:FRO - Get Free Report) shares passed above its two hundred day moving average during trading on Thursday . The stock has a two hundred day moving average of $28.37 and traded as high as $36.88. Frontline shares last traded at $36.5320, with a volume of 2,068,763 shares changing hands.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the company. BTIG Research lifted their price objective on Frontline from $42.00 to $45.00 and gave the company a "buy" rating in a report on Wednesday, April 22nd. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Frontline in a report on Friday, March 27th. Wall Street Zen raised Frontline from a "hold" rating to a "buy" rating in a report on Saturday, April 4th. Clarkson Capital raised Frontline from a "neutral" rating to a "buy" rating in a report on Monday, January 12th. Finally, Dnb Carnegie lowered Frontline from a "strong-buy" rating to a "hold" rating in a report on Monday, March 2nd. Three investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $39.00.

Frontline Price Performance

The company has a debt-to-equity ratio of 1.09, a quick ratio of 1.19 and a current ratio of 1.43. The stock has a market capitalization of $8.13 billion, a price-to-earnings ratio of 21.49 and a beta of 0.05. The company has a 50-day moving average of $34.96 and a 200-day moving average of $28.37.

Frontline (NYSE:FRO - Get Free Report) last issued its quarterly earnings data on Saturday, February 28th. The shipping company reported $1.03 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.13 by ($0.10). Frontline had a return on equity of 16.51% and a net margin of 19.31%.The company had revenue of $624.51 million for the quarter, compared to analyst estimates of $456.90 million. During the same quarter in the prior year, the firm earned $0.20 earnings per share. The company's revenue for the quarter was up 46.7% on a year-over-year basis.

Frontline Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, March 19th. Investors of record on Thursday, March 12th were given a dividend of $1.03 per share. The ex-dividend date was Thursday, March 12th. This represents a $4.12 annualized dividend and a dividend yield of 11.3%. This is an increase from Frontline's previous quarterly dividend of $0.19. Frontline's payout ratio is presently 242.35%.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. University of Texas Texas AM Investment Management Co. acquired a new position in shares of Frontline during the 4th quarter worth approximately $25,000. Sunbelt Securities Inc. acquired a new position in shares of Frontline during the 3rd quarter worth approximately $41,000. Sound Income Strategies LLC acquired a new position in shares of Frontline during the 4th quarter worth approximately $53,000. CIBC Private Wealth Group LLC acquired a new position in shares of Frontline during the 3rd quarter worth approximately $80,000. Finally, Triumph Capital Management acquired a new position in shares of Frontline during the 3rd quarter worth approximately $97,000. 22.70% of the stock is currently owned by institutional investors and hedge funds.

About Frontline

Frontline Ltd. NYSE: FRO is a leading global shipping company specializing in the seaborne transportation of crude oil and petroleum products. The company's core business activities encompass the ownership and operation of very large crude carriers (VLCCs), Suezmax tankers and Aframax vessels. Through long-term charters, spot market operations and time charters, Frontline provides flexible shipping solutions that cater to a diverse set of energy producers, refiners and trading houses worldwide.

Frontline's fleet is geared toward high-capacity, ocean-going tankers capable of carrying large volumes of crude oil over intercontinental distances.

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