Frontier Group (NASDAQ:ULCC) Stock Breaks Above Two Hundred Day Moving Average - Here's Why

Key Points

• Frontier Group shares rose above their 200-day moving average, reaching $5.53 on heavy volume of roughly 5.15 million shares. The stock has a market capitalization of about $1.27 billion and a beta of 2.64.
• Wall Street sentiment remains cautious: analysts have an average “Reduce” rating and a consensus price target of $6.29, with six Holds and three Sells. Several firms recently lowered their price targets, including Barclays to $5.00.
• Frontier reported quarterly revenue of $1.28 billion and an adjusted loss of $0.10 per share, outperforming expectations, while revenue increased 37.7% year over year. However, insiders sold 349,662 shares worth approximately $2.79 million over the past three months.

Frontier Group Holdings, Inc. (NASDAQ:ULCC - Get Free Report)'s share price crossed above its 200-day moving average during trading on Tuesday. The stock has a 200-day moving average of $5.41 and traded as high as $5.53. Frontier Group shares last traded at $5.53, with a volume of 5,152,212 shares traded.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on ULCC. Barclays lowered their price objective 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. Weiss Ratings lowered shares of Frontier Group from a "sell (d)" rating to a "sell (d-)" rating in a research note on Thursday, July 30th. Susquehanna cut their target price on shares of Frontier Group from $7.00 to $6.00 and set a "neutral" rating on the stock in a research note on Wednesday, October 7th. UBS Group reduced their price target on shares of Frontier Group from $7.00 to $6.00 and set a "neutral" rating for the company in a report on Thursday, September 24th. Finally, Zacks Research downgraded shares of Frontier Group from a "strong-buy" rating to a "hold" rating in a research note on Thursday, August 27th. Six analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Reduce" and an average target price of $6.29.

Frontier Group Price Performance

The firm has a fifty day simple moving average of $5.70 and a 200-day simple moving average of $5.41. The firm has a market cap of $1.27 billion, a P/E ratio of -3.29 and a beta of 2.64.

Frontier Group (NASDAQ:ULCC - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The company reported ($0.10) EPS for the quarter, beating analysts' consensus estimates of ($0.47) by $0.37. The firm had revenue of $1.28 billion during the quarter, compared to analyst estimates of $1.22 billion. The company's revenue was up 37.7% on a year-over-year basis. During the same period last year, the business posted ($0.31) EPS. On average, equities analysts predict that Frontier Group Holdings, Inc. will post -0.53 earnings per share for the current year.

Insider Activity at Frontier Group

In related news, SVP Alexandre Clerc sold 7,142 shares of the stock in a transaction on Friday, July 31st. The stock was sold at an average price of $7.13, for a total value of $50,922.46. Following the transaction, the senior vice president directly owned 40,556 shares in the company, valued at $289,164.28. This trade represents a 14.97% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Mark Mitchell sold 125,000 shares of the stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $8.09, for a total value of $1,011,250.00. Following the completion of the transaction, the chief financial officer owned 53,785 shares in the company, valued at approximately $435,120.65. This represents a 69.92% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 349,662 shares of company stock valued at $2,786,452 over the last three months. 48.00% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the business. Integrated Wealth Concepts LLC bought a new position in shares of Frontier Group in the second quarter valued at $28,000. Allworth Financial LP bought a new stake in shares of Frontier Group during the second quarter worth about $43,000. Legal & General Group Plc bought a new stake in shares of Frontier Group during the second quarter worth about $46,000. Signaturefd LLC increased its position in shares of Frontier Group by 81.7% during the third quarter. Signaturefd LLC now owns 6,020 shares of the company's stock worth $36,000 after acquiring an additional 2,707 shares in the last quarter. Finally, Atlas Wealth LLC acquired a new stake in shares of Frontier Group in the 1st quarter worth about $33,000.

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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