Frontier Group (NASDAQ:ULCC) Shares Up 13.9% Following Analyst Upgrade

Key Points

• Frontier Group shares jumped 13.9% after UBS raised its price target from $6.00 to $7.00, though it maintained a neutral rating. The stock traded as high as $7.25, while volume was 79% below its average.
• Analyst sentiment remains cautious, with six hold ratings and three sell ratings producing an average “Reduce” rating and a consensus price target of $6.50.
• Frontier reported quarterly revenue of $1.35 billion and adjusted earnings of $0.18 per share, beating estimates, while revenue increased 52.9% year over year. Meanwhile, insiders sold 332,520 shares worth approximately $2.66 million over the past 90 days.

Frontier Group Holdings, Inc. (NASDAQ:ULCC - Get Free Report)'s stock price shot up 13.9% on Monday after UBS Group raised their price target on the stock from $6.00 to $7.00. UBS Group currently has a neutral rating on the stock. Frontier Group traded as high as $7.25 and last traded at $7.3440. 858,385 shares traded hands during trading, a decline of 79% from the average daily volume of 4,153,947 shares. The stock had previously closed at $6.45.

Other equities research analysts have also issued reports about the stock. Susquehanna lifted their price target on shares of Frontier Group from $6.00 to $6.50 and gave the company a "neutral" rating in a report on Thursday. Zacks Research lowered shares of Frontier Group from a "strong-buy" rating to a "hold" rating in a report on Thursday, August 27th. Weiss Ratings restated a "sell (d-)" rating on shares of Frontier Group in a report on Wednesday. Finally, Barclays cut their target price on Frontier Group from $7.00 to $5.00 and set an "underweight" rating on the stock in a report on Friday, September 11th. Six equities research analysts have rated the stock with a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, Frontier Group has an average rating of "Reduce" and a consensus price target of $6.50.

Insider Transactions at Frontier Group

In related news, CFO Mark Mitchell sold 125,000 shares of Frontier Group stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $8.09, for a total value of $1,011,250.00. Following the transaction, the chief financial officer owned 53,785 shares in the company, valued at $435,120.65. This trade represents a 69.92% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Howard Diamond sold 24,195 shares of the business's stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $8.25, for a total value of $199,608.75. Following the completion of the sale, the executive vice president directly owned 133,126 shares of the company's stock, valued at approximately $1,098,289.50. This trade represents a 15.38% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 332,520 shares of company stock worth $2,660,029. 48.00% of the stock is owned by corporate insiders.

Institutional Trading of Frontier Group

A number of hedge funds and other institutional investors have recently modified their holdings of ULCC. Signaturefd LLC raised its position in shares of Frontier Group by 81.7% in the 3rd quarter. Signaturefd LLC now owns 6,020 shares of the company's stock worth $36,000 after purchasing an additional 2,707 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in Frontier Group by 3.9% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 92,787 shares of the company's stock valued at $734,000 after purchasing an additional 3,461 shares in the last quarter. Integrated Wealth Concepts LLC bought a new stake in Frontier Group during the 2nd quarter valued at about $28,000. Allworth Financial LP purchased a new position in Frontier Group in the second quarter worth about $43,000. Finally, Legal & General Group Plc purchased a new position in Frontier Group in the second quarter worth about $46,000.

Frontier Group Trading Up 15.8%

The firm's 50 day moving average price is $5.72 and its 200-day moving average price is $5.43. The stock has a market cap of $1.72 billion, a P/E ratio of -4.17 and a beta of 2.70. 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 earnings results on Wednesday, October 28th. The company reported $0.18 earnings per share for the quarter, beating analysts' consensus estimates of ($0.06) by $0.24. Frontier Group had a negative net margin of 8.93% and a positive return on equity of 1.35%. The business had revenue of $1.35 billion during the quarter, compared to analyst estimates of $1.29 billion. During the same period in the previous year, the business earned ($0.34) EPS. The company's quarterly revenue was up 52.9% compared to the same quarter last year. As a group, equities research analysts forecast that Frontier Group Holdings, Inc. will post -0.39 earnings per share for the current year.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.