Frontier Group (NASDAQ:ULCC) Shares Climb 9.9% - Time to Buy?

Key Points

• Frontier Group shares rose 9.9% to about $5.07, although trading volume was 89% below the stock’s average daily volume.
• Analysts remain cautious, with six Hold ratings and three Sell ratings producing an average “Reduce” consensus and a $6.29 price target.
• The company beat quarterly EPS and revenue expectations, but remains unprofitable, highly leveraged, and insiders sold 349,662 shares worth approximately $2.8 million during the last quarter.

Frontier Group Holdings, Inc. (NASDAQ:ULCC - Get Free Report)'s stock price traded up 9.9% during trading on Tuesday. The company traded as high as $4.88 and last traded at $5.0670. 458,117 shares changed hands during trading, a decline of 89% from the average daily volume of 4,159,499 shares. The stock had previously closed at $4.61.

Wall Street Analysts Forecast Growth

ULCC has been the subject of a number of research analyst reports. Susquehanna lowered their price target on Frontier Group from $7.00 to $6.00 and set a "neutral" rating for the company in a report on Wednesday, October 7th. UBS Group reduced their price objective on Frontier Group from $7.00 to $6.00 and set a "neutral" rating on the stock in a research note on Thursday, September 24th. Citigroup lifted their price objective on shares of Frontier Group from $5.00 to $9.00 and gave the stock a "neutral" rating in a report on Friday, June 26th. Barclays lowered their target price on shares of Frontier Group from $7.00 to $5.00 and set an "underweight" rating for the company in a research note on Friday, September 11th. Finally, Weiss Ratings cut shares of Frontier Group from a "sell (d)" rating to a "sell (d-)" rating in a report on Thursday, July 30th. Six analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat.com, Frontier Group presently has an average rating of "Reduce" and an average price target of $6.29.

Frontier Group Price Performance

The company has a current ratio of 0.58, a quick ratio of 0.54 and a debt-to-equity ratio of 2.77. The business has a 50-day moving average price of $5.87 and a two-hundred day moving average price of $5.78. The firm has a market capitalization of $1.13 billion, a price-to-earnings ratio of -2.93 and a beta of 2.64.

Frontier Group (NASDAQ:ULCC - Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The company reported ($0.10) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.47) by $0.37. The business had revenue of $1.28 billion during the quarter, compared to analyst estimates of $1.22 billion. Frontier Group had a negative return on equity of 35.54% and a negative net margin of 9.29%. The business's revenue for the quarter was up 37.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted ($0.31) EPS. Frontier Group has set its Q4 2026 guidance at 0.000-0.200 EPS and its Q3 2026 guidance at -0.100-0.100 EPS. As a group, research analysts forecast that Frontier Group Holdings, Inc. will post -0.47 EPS for the current year.

Insider Activity at Frontier Group

In other news, SVP Steve Schuller sold 10,000 shares of the company's stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $7.55, for a total transaction of $75,500.00. Following the completion of the transaction, the senior vice president owned 87,175 shares in the company, valued at approximately $658,171.25. This represents a 10.29% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Trevor Stedke sold 167,277 shares of the stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $8.03, for a total transaction of $1,343,234.31. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 349,662 shares of company stock valued at $2,786,452. Company insiders own 48.00% of the company's stock.

Institutional Investors Weigh In On Frontier Group

A number of hedge funds have recently made changes to their positions in ULCC. Integrated Wealth Concepts LLC acquired a new stake in Frontier Group in the 2nd quarter valued at approximately $28,000. Allworth Financial LP acquired a new position in Frontier Group during the 2nd quarter worth $43,000. Legal & General Group Plc bought a new position in shares of Frontier Group in the second quarter worth $46,000. Atlas Wealth LLC acquired a new position in shares of Frontier Group during the first quarter valued at $33,000. Finally, Sequoia Financial Advisors LLC acquired a new position in shares of Frontier Group during the second quarter valued at $116,000.

About Frontier Group

Frontier Group Holdings, Inc is the parent company of Frontier Airlines, an ultra-low-cost passenger airline headquartered in Denver, Colorado. Frontier Airlines operates a low-fare business model that separates base airfare from optional services, allowing customers to pay for add-ons such as checked baggage, seat selection, priority services and other travel options.

Frontier Airlines serves a broad network of destinations across the United States, as well as selected locations in Mexico, the Caribbean and Central America.

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