Frontline PLC (NYSE:FRO) Receives Consensus Recommendation of "Moderate Buy" from Brokerages

Key Points

• Analysts give Frontline a consensus rating of "Moderate Buy" (4 buys, 3 holds) with an average 12‑month price target of $38.00, and several recent analyst moves include upgrades and BTIG raising its target to $42.00.
• Frontline sharply increased its quarterly dividend to $1.03 (up from $0.19), implying a $4.12 annualized payout and a yield of 11.8%, but the payout ratio is very high at 242.35%, signaling sustainability risk.
• In the most recent quarter Frontline missed EPS expectations ($1.03 vs. $1.13) but beat on revenue ($624.5M vs. $456.9M), with revenue up 46.7% year‑over‑year and a net margin of 19.31%.

Shares of Frontline PLC (NYSE:FRO - Get Free Report) have been assigned an average recommendation of "Moderate Buy" from the seven analysts that are covering the stock, Marketbeat.com reports. Three analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. The average 12-month price objective among brokers that have issued a report on the stock in the last year is $38.00.

A number of research analysts recently weighed in on FRO shares. Clarkson Capital upgraded shares of Frontline from a "neutral" rating to a "buy" rating in a research report on Monday, January 12th. Weiss Ratings restated a "hold (c)" rating on shares of Frontline in a research report on Friday, March 27th. Wall Street Zen upgraded shares of Frontline from a "hold" rating to a "buy" rating in a research report on Saturday. BTIG Research increased their price objective on shares of Frontline from $35.00 to $42.00 and gave the company a "buy" rating in a research report on Friday, February 27th. Finally, Dnb Carnegie downgraded shares of Frontline from a "strong-buy" rating to a "hold" rating in a research report on Monday, March 2nd.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. University of Texas Texas AM Investment Management Co. bought a new position in Frontline in the fourth quarter worth approximately $25,000. Sunbelt Securities Inc. bought a new position in Frontline in the third quarter worth approximately $41,000. Sound Income Strategies LLC bought a new position in Frontline in the fourth quarter worth approximately $53,000. CIBC Private Wealth Group LLC bought a new position in Frontline in the third quarter worth approximately $80,000. Finally, Triumph Capital Management bought a new position in Frontline in the third quarter worth approximately $97,000. 22.70% of the stock is currently owned by institutional investors.

Frontline Stock Down 4.2%

Shares of Frontline stock opened at $34.95 on Wednesday. The company has a market cap of $7.78 billion, a price-to-earnings ratio of 20.56 and a beta of 0.05. The company's 50 day moving average is $33.00 and its 200 day moving average is $26.93. Frontline has a twelve month low of $13.04 and a twelve month high of $39.89. The company has a quick ratio of 1.37, a current ratio of 1.43 and a debt-to-equity ratio of 1.09.

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 for the quarter, missing analysts' consensus estimates of $1.13 by ($0.10). The company had revenue of $624.51 million for the quarter, compared to the consensus estimate of $456.90 million. Frontline had a net margin of 19.31% and a return on equity of 16.51%. The firm's revenue for the quarter was up 46.7% on a year-over-year basis. During the same quarter last year, the company earned $0.20 EPS. Research analysts anticipate that Frontline will post 1.78 EPS for the current year.

Frontline Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, March 19th. Shareholders of record on Thursday, March 12th were given a $1.03 dividend. The ex-dividend date was Thursday, March 12th. This is a boost from Frontline's previous quarterly dividend of $0.19. This represents a $4.12 annualized dividend and a yield of 11.8%. Frontline's payout ratio is 242.35%.

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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