Frontier Group (NASDAQ:ULCC) Stock Price Up 11.5% - Here's What Happened

Key Points

• Frontier Group shares rose 11.5% to about $5.48 in midday trading, although volume was 45% below the average session level.
• Analyst sentiment remains cautious: six analysts rate the stock “Hold” and three rate it “Sell,” producing an average “Reduce” rating and a consensus price target of $6.29.
• The company exceeded quarterly expectations, reporting an adjusted loss of $0.10 per share versus the expected $0.47 loss, while revenue increased 37.7% year over year to $1.28 billion. However, insiders sold 349,662 shares worth roughly $2.79 million over the past 90 days.

Frontier Group Holdings, Inc. (NASDAQ:ULCC - Get Free Report)'s share price traded up 11.5% during mid-day trading on Tuesday. The stock traded as high as $5.46 and last traded at $5.4770. 2,282,836 shares were traded during trading, a decline of 45% from the average session volume of 4,138,445 shares. The stock had previously closed at $4.91.

Analyst Ratings Changes

A number of research firms recently issued reports on ULCC. Susquehanna lowered their price objective on shares of Frontier Group from $7.00 to $6.00 and set a "neutral" rating for the company in a research report on Wednesday, October 7th. Barclays cut their target price on shares of Frontier Group from $7.00 to $5.00 and set an "underweight" rating on the stock in a research report on Friday, September 11th. Zacks Research lowered shares of Frontier Group from a "strong-buy" rating to a "hold" rating in a research report on Thursday, August 27th. Weiss Ratings cut shares of Frontier Group from a "sell (d)" rating to a "sell (d-)" rating in a research note on Thursday, July 30th. Finally, UBS Group lowered 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. Six research 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 a consensus price target of $6.29.

Frontier Group Stock Up 11.5%

The firm has a 50-day simple moving average of $5.71 and a 200 day simple moving average of $5.41. The stock has a market capitalization of $1.26 billion, a P/E ratio of -3.25 and a beta of 2.64. The company has a debt-to-equity ratio of 2.77, a current ratio of 0.58 and a quick ratio of 0.54.

Frontier Group (NASDAQ:ULCC - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The company reported ($0.10) earnings per share for the quarter, topping the consensus estimate of ($0.47) by $0.37. Frontier Group had a negative return on equity of 35.54% and a negative net margin of 9.29%. The company had revenue of $1.28 billion for the quarter, compared to analysts' expectations of $1.22 billion. During the same period in the previous year, the business posted ($0.31) earnings per share. The business's quarterly revenue was up 37.7% compared to the same quarter last year. 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. On average, equities research analysts forecast that Frontier Group Holdings, Inc. will post -0.53 EPS for the current year.

Insider Buying and Selling at Frontier Group

In other Frontier Group news, CFO Mark Mitchell sold 125,000 shares of Frontier Group stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $8.09, for a total transaction of $1,011,250.00. Following the transaction, the chief financial officer directly owned 53,785 shares of the company's stock, valued at approximately $435,120.65. The trade was a 69.92% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Trevor Stedke sold 167,277 shares of the company's stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $8.03, for a total value of $1,343,234.31. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 349,662 shares of company stock worth $2,786,452 over the last 90 days. Company insiders own 48.00% of the company's stock.

Hedge Funds Weigh In On Frontier Group

A number of hedge funds and other institutional investors have recently made changes to their positions in ULCC. BlackRock Inc. acquired a new stake in Frontier Group during the 2nd quarter valued at approximately $47,205,000. U S Global Investors Inc. lifted its position in shares of Frontier Group by 63.9% in the 1st quarter. U S Global Investors Inc. now owns 6,781,412 shares of the company's stock worth $23,938,000 after purchasing an additional 2,643,448 shares during the period. Silver Point Capital L.P. bought a new stake in shares of Frontier Group in the 2nd quarter valued at $12,141,850. Bank of America Corp DE bought a new stake in shares of Frontier Group in the 2nd quarter valued at $7,337,000. Finally, GSA Capital Partners LLP bought a new stake in shares of Frontier Group in the 2nd quarter valued at $4,373,000.

About Frontier Group

Frontier Group Holdings, Inc is the parent company of Frontier Airlines, an ultra-low-cost passenger airline headquartered in Denver, Colorado. 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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