Frontier Group (NASDAQ:ULCC) Hits New 12-Month High - Time to Buy?

Key Points

• Frontier Group shares reached a 52-week high of $8.52, up 11.9% from the prior close of $7.43.
• Analyst views remain cautious overall: consensus is “Reduce,” with a $7.07 price target, despite Deutsche Bank upgrading the stock to Buy and raising its target to $10.
• The airline beat quarterly earnings and revenue estimates, reporting EPS of $0.18 versus expectations of a $0.06 loss and year-over-year revenue growth of 52.9%.

Frontier Group Holdings, Inc. (NASDAQ:ULCC - Get Free Report) hit a new 52-week high during mid-day trading on Monday. The stock traded as high as $8.52 and last traded at $8.4750, with a volume of 2,939,916 shares trading hands. The stock had previously closed at $7.43.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on the stock. Deutsche Bank Aktiengesellschaft raised shares of Frontier Group from a "hold" rating to a "buy" rating and boosted their price target for the stock from $7.00 to $10.00 in a research note on Thursday. Weiss Ratings restated a "sell (d-)" rating on shares of Frontier Group in a research report on Wednesday, October 28th. Zacks Research cut Frontier Group from a "strong-buy" rating to a "hold" rating in a research note on Thursday, August 27th. Susquehanna upped their price objective on Frontier Group from $6.00 to $6.50 and gave the company a "neutral" rating in a report on Thursday, October 29th. Finally, UBS Group increased their price target on shares of Frontier Group from $6.00 to $7.00 and gave the company a "neutral" rating in a research report on Friday, October 30th. One research analyst has rated the stock with a Buy rating, five have assigned a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Reduce" and a consensus price target of $7.07.

Frontier Group Trading Up 11.9%

The firm has a market cap of $1.92 billion, a P/E ratio of -4.67 and a beta of 2.71. The business's 50-day moving average is $5.84 and its two-hundred day moving average is $5.48. The company has a debt-to-equity ratio of 10.68, a current ratio of 0.62 and a quick ratio of 0.57.

Frontier Group (NASDAQ:ULCC - Get Free Report) last announced its quarterly earnings data on Wednesday, October 28th. The company reported $0.18 EPS for the quarter, beating analysts' consensus estimates of ($0.06) by $0.24. The company had revenue of $1.35 billion during the quarter, compared to the consensus estimate of $1.29 billion. Frontier Group had a negative net margin of 8.93% and a positive return on equity of 1.35%. The company's quarterly revenue was up 52.9% on a year-over-year basis. During the same quarter last year, the firm posted ($0.34) EPS. As a group, analysts predict that Frontier Group Holdings, Inc. will post -0.33 earnings per share for the current fiscal year.

Insider Buying and Selling at Frontier Group

In other news, SVP Steve Schuller sold 7,500 shares of Frontier Group stock in a transaction on Friday, September 4th. The stock was sold at an average price of $6.00, for a total transaction of $45,000.00. Following the completion of the sale, the senior vice president owned 79,675 shares of the company's stock, valued at approximately $478,050. This trade represents a 8.60% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 48.00% of the company's stock.

Institutional Investors Weigh In On Frontier Group

A number of large investors have recently bought and sold shares of the company. Quantbot Technologies LP acquired a new stake in shares of Frontier Group during the second quarter valued at about $888,000. GSA Capital Partners LLP bought a new stake in shares of Frontier Group during the 2nd quarter valued at about $4,373,000. BlackRock Inc. acquired a new stake in Frontier Group during the second quarter worth approximately $47,205,000. U S Global Investors Inc. grew its stake in Frontier Group by 6.1% during the third quarter. U S Global Investors Inc. now owns 5,216,198 shares of the company's stock worth $31,141,000 after purchasing an additional 301,543 shares during the period. Finally, Bank of America Corp DE bought a new stake in Frontier Group in the second quarter worth approximately $7,337,000.

Frontier Group Company Profile

Frontier Group Holdings, Inc is the parent company of Frontier Airlines, an ultra-low-cost passenger airline headquartered in Denver, Colorado. The company operates a low-fare, point-to-point air transportation business, primarily serving leisure travelers and price-conscious customers.

Frontier Airlines offers scheduled flights to destinations across the United States, as well as selected locations in the Caribbean and Latin America. Its business model emphasizes low base fares with additional charges for optional services such as checked baggage, seat selection, priority boarding and other travel-related products.

Frontier Airlines traces its roots to 1994 and has expanded its network through a fleet focused largely on Airbus narrow-body aircraft.

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