Frontier Developments (LON:FDEV) Shares Up 16.7% on Analyst Upgrade

Key Points

• Frontier Developments shares jumped 16.7% to GBX 520.31 after Shore Capital upgraded the stock to “buy” and set a GBX 650 price target. Trading volume surged to nearly 1.9 million shares, about 985% above average.
• Berenberg reaffirmed its “buy” rating with a GBX 600 target, while the four-analyst consensus remains “Buy” with an average target of GBX 618.75.
• The company reported quarterly EPS of GBX 74.60, a 19.43% net margin and 21.13% return on equity; insider Alex Bevis separately sold 5,084 shares for approximately £20,539.

Frontier Developments plc (LON:FDEV - Get Free Report) was up 16.7% during trading on Wednesday after Shore Capital Group upgraded the stock to a buy rating. Shore Capital Group now has a GBX 650 price target on the stock. Frontier Developments traded as high as GBX 534 and last traded at GBX 520.31. Approximately 1,881,745 shares were traded during mid-day trading, an increase of 985% from the average daily volume of 173,407 shares. The stock had previously closed at GBX 446.

Separately, Berenberg Bank reaffirmed a "buy" rating and issued a GBX 600 price target on shares of Frontier Developments in a research report on Wednesday. Four research analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the company currently has an average rating of "Buy" and a consensus price target of GBX 618.75.

Insider Buying and Selling

In other Frontier Developments news, insider Alex Bevis sold 5,084 shares of the company's stock in a transaction on Tuesday, June 23rd. The stock was sold at an average price of GBX 404, for a total value of £20,539.36. 38.10% of the stock is currently owned by corporate insiders.

Frontier Developments Trading Up 16.7%

The firm has a market cap of £180.72 million, a P/E ratio of 10.45, a price-to-earnings-growth ratio of 2.11 and a beta of 0.03. The company has a current ratio of 2.83, a quick ratio of 2.61 and a debt-to-equity ratio of 19.71. The company's fifty day moving average price is GBX 431.21 and its two-hundred day moving average price is GBX 402.27.

Frontier Developments (LON:FDEV - Get Free Report) last announced its quarterly earnings results on Wednesday, September 9th. The company reported GBX 74.60 earnings per share (EPS) for the quarter. Frontier Developments had a net margin of 19.43% and a return on equity of 21.13%. As a group, sell-side analysts predict that Frontier Developments plc will post 7.0917759 EPS for the current fiscal year.

About Frontier Developments

Frontier is a leading independent developer and publisher of video games for PC and console, creating immersive and fun gameplay, with unparalleled artistic quality. At Frontier, we specialise in creating endless possibilities in playful, fun and creative worlds. From some of the world's biggest licensed entertainment and sporting franchises, to intricately crafted worlds where players can explore and make their mark, our games are all underpinned by our unwavering passion for creating compelling and innovative experiences that continue to inspire and delight our players. We have created games that have defined genres, been critically acclaimed, and reached many millions of players.

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