Frontier Developments (LON:FDEV) Stock Falls 12.9% - Time to Sell?

Key Points

• Frontier Developments shares fell 12.9% to GBX 560, with trading volume surging 224% above the average session volume.
• Despite the decline, analysts remain positive: all four covering analysts rate the stock a Buy, with an average price target of GBX 618.75.
• The company reported GBX 74.60 in quarterly earnings per share, a 26.03% net margin and 27.12% return on equity; however, insider Alex Bevis sold 50,000 shares for £258,000.

Frontier Developments plc (LON:FDEV - Get Free Report) shares were down 12.9% during trading on Wednesday. The stock traded as low as GBX 556 and last traded at GBX 560. 556,434 shares changed hands during mid-day trading, an increase of 224% from the average session volume of 171,775 shares. The stock had previously closed at GBX 643.

Analyst Ratings Changes

A number of research firms recently issued reports on FDEV. Shore Capital Group raised shares of Frontier Developments to a "buy" rating and set a GBX 650 price objective on the stock in a report on Wednesday, September 9th. Berenberg Bank reaffirmed a "buy" rating and set a GBX 600 target price on shares of Frontier Developments in a report on Wednesday, September 9th. Four research analysts have rated the stock with a Buy rating. According to MarketBeat.com, Frontier Developments presently has a consensus rating of "Buy" and an average target price of GBX 618.75.

Frontier Developments Trading Down 12.9%

The stock has a market capitalization of £189.60 million, a PE ratio of 8.00, a PEG ratio of 2.11 and a beta of 0.03. The stock's 50 day moving average price is GBX 510.90 and its 200-day moving average price is GBX 439.30. The company has a quick ratio of 2.61, a current ratio of 3.50 and a debt-to-equity ratio of 16.51.

Frontier Developments (LON:FDEV - Get Free Report) last issued its earnings results on Wednesday, September 9th. The company reported GBX 74.60 earnings per share for the quarter. Frontier Developments had a net margin of 26.03% and a return on equity of 27.12%. On average, sell-side analysts expect that Frontier Developments plc will post 7.09 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, insider Alex Bevis sold 50,000 shares of the business's stock in a transaction that occurred on Thursday, September 10th. The stock was sold at an average price of GBX 516, for a total value of £258,000. Corporate insiders own 39.02% of the company's stock.

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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