Frontline PLC (NYSE:FRO) Receives Average Rating of "Hold" from Analysts

Key Points

• Frontline has a consensus “Hold” rating from nine analysts, with five holds and four buys. The average 12-month price target is $41.615, compared with the stock’s reported price of $38.44.
• Institutional investors have increased their exposure, with hedge funds and other institutions now owning 22.70% of Frontline after major purchases and position increases.
• Frontline raised its quarterly dividend to $1.55 per share, equating to a $6.20 annualized payout and a 16.1% dividend yield, although its payout ratio is elevated at 152.71%.

Frontline PLC (NYSE:FRO - Get Free Report) has been assigned a consensus rating of "Hold" from the nine ratings firms that are presently covering the stock, Marketbeat reports. Five analysts have rated the stock with a hold recommendation and four have issued a buy recommendation on the company. The average twelve-month price objective among analysts that have issued a report on the stock in the last year is $41.6150.

Several research analysts have commented on the company. Pareto Securities downgraded Frontline from a "buy" rating to a "hold" rating and set a $39.46 price objective on the stock. in a report on Monday, May 25th. BTIG Research upped their target price on Frontline from $45.00 to $55.00 and gave the stock a "buy" rating in a report on Wednesday, June 24th. Evercore downgraded Frontline from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, April 21st. Danske lowered Frontline to a "hold" rating in a research note on Tuesday, May 26th. Finally, Wall Street Zen upgraded Frontline from a "buy" rating to a "strong-buy" rating in a report on Saturday, June 27th.

Institutional Investors Weigh In On Frontline

A number of large investors have recently modified their holdings of the business. Arrowstreet Capital Limited Partnership raised its holdings in shares of Frontline by 4,659.9% in the first quarter. Arrowstreet Capital Limited Partnership now owns 5,783,681 shares of the shipping company's stock valued at $202,080,000 after buying an additional 5,662,172 shares during the last quarter. BlackRock Inc. purchased a new position in shares of Frontline during the second quarter worth about $50,846,000. Cooper Creek Partners Management LLC acquired a new position in Frontline in the 1st quarter valued at about $26,911,000. Voloridge Investment Management LLC acquired a new position in Frontline in the 4th quarter valued at about $15,676,000. Finally, Balyasny Asset Management L.P. increased its position in Frontline by 44.0% in the 3rd quarter. Balyasny Asset Management L.P. now owns 2,247,120 shares of the shipping company's stock valued at $51,212,000 after acquiring an additional 686,212 shares during the period. Hedge funds and other institutional investors own 22.70% of the company's stock.

Frontline Stock Performance

Shares of FRO opened at $38.44 on Tuesday. The company has a quick ratio of 2.03, a current ratio of 2.03 and a debt-to-equity ratio of 0.83. The business has a 50-day simple moving average of $37.88 and a two-hundred day simple moving average of $35.38. The stock has a market cap of $8.56 billion, a price-to-earnings ratio of 9.47 and a beta of 0.02. Frontline has a 52 week low of $18.26 and a 52 week high of $43.10.

Frontline Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, June 23rd. Shareholders of record on Friday, June 12th were given a dividend of $1.55 per share. The ex-dividend date of this dividend was Friday, June 12th. This is a positive change from Frontline's previous quarterly dividend of $1.03. This represents a $6.20 annualized dividend and a dividend yield of 16.1%. Frontline's payout ratio is currently 152.71%.

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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