BTIG Research Forecasts Strong Price Appreciation for Frontline (NYSE:FRO) Stock

Key Points

• BTIG Research has increased its target price for Frontline (NYSE:FRO) from $25.00 to $30.00, indicating a potential upside of 26.85% from the stock's previous close.
• Despite the optimistic outlook from BTIG, Frontline's recent quarterly earnings revealed an EPS of $0.36, missing analyst estimates, while revenue of $282.95 million fell short of expectations.
• Institutional investors have shown significant interest, with some raising their positions by substantial percentages, indicating growing confidence in Frontline's prospects.

Frontline (NYSE:FRO - Free Report) had its target price lifted by BTIG Research from $25.00 to $30.00 in a research note published on Wednesday morning, MarketBeat.com reports. BTIG Research currently has a buy rating on the shipping company's stock.

FRO has been the subject of several other research reports. Jefferies Financial Group reaffirmed a "buy" rating and set a $25.00 price target on shares of Frontline in a research note on Friday, August 29th. Wall Street Zen downgraded shares of Frontline from a "hold" rating to a "sell" rating in a research note on Sunday, July 6th. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has given a Sell rating to the company. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $21.87.

Frontline Trading Down 2.8%

FRO traded down $0.66 on Wednesday, hitting $23.21. The company had a trading volume of 2,109,955 shares, compared to its average volume of 2,575,094. The company has a quick ratio of 1.88, a current ratio of 1.88 and a debt-to-equity ratio of 1.38. The company has a market cap of $5.17 billion, a PE ratio of 21.69 and a beta of 0.25. Frontline has a 12-month low of $12.40 and a 12-month high of $25.68. The business's fifty day simple moving average is $20.23 and its 200 day simple moving average is $17.96.

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 the consensus estimate of $0.42 by ($0.06). Frontline had a return on equity of 10.27% and a net margin of 12.94%.The firm had revenue of $282.95 million during the quarter, compared to the consensus estimate of $328.71 million. During the same period in the previous year, the business earned $0.62 EPS. The firm's revenue for the quarter was up 34.2% on a year-over-year basis. Equities research analysts expect that Frontline will post 1.78 EPS for the current year.

Frontline Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 24th. Shareholders of record on Friday, September 12th will be issued a $0.36 dividend. This represents a $1.44 annualized dividend and a yield of 6.2%. The ex-dividend date of this dividend is Friday, September 12th. Frontline's payout ratio is currently 134.58%.

Hedge Funds Weigh In On Frontline

Institutional investors and hedge funds have recently bought and sold shares of the company. Northern Trust Corp grew its holdings in shares of Frontline by 16.5% during the fourth quarter. Northern Trust Corp now owns 83,483 shares of the shipping company's stock valued at $1,185,000 after buying an additional 11,843 shares during the last quarter. BNP Paribas Financial Markets purchased a new stake in shares of Frontline during the fourth quarter valued at $424,000. Bank of America Corp DE grew its holdings in shares of Frontline by 153.1% during the fourth quarter. Bank of America Corp DE now owns 228,843 shares of the shipping company's stock valued at $3,247,000 after buying an additional 138,426 shares during the last quarter. Point72 Asset Management L.P. purchased a new stake in shares of Frontline during the fourth quarter valued at $2,134,000. Finally, Vident Advisory LLC grew its holdings in shares of Frontline by 62.7% during the fourth quarter. Vident Advisory LLC now owns 28,503 shares of the shipping company's stock valued at $404,000 after buying an additional 10,982 shares during the last quarter. 22.70% of the stock is owned by hedge funds and other institutional investors.

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.