Frontline (NYSE:FRO) Hits New 1-Year High - What's Next?

Key Points

• Frontline shares reached a new 52-week high of $50.78, substantially above the 50- and 200-day moving averages of $41.29 and $37.93. Despite the rally, analysts’ consensus remains “Hold,” with an average price target of $41.62.
• Frontline reported strong operating growth, including 96.5% year-over-year revenue growth to $943.3 million, though quarterly EPS of $2.61 fell short of the $2.74 consensus estimate.
• The company raised its quarterly dividend to $2.61 per share, equivalent to a $10.44 annualized payout and a 20.7% yield; its payout ratio is 92.95%.

Frontline PLC (NYSE:FRO - Get Free Report)'s share price hit a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $50.78 and last traded at $50.5480, with a volume of 4002429 shares traded. The stock had previously closed at $49.21.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on FRO shares. Wall Street Zen raised Frontline from a "buy" rating to a "strong-buy" rating in a research report on Saturday, August 29th. DZ Bank downgraded Frontline from a "hold" rating to a "sell" rating in a research note on Friday, August 21st. BTIG Research boosted their target price on shares of Frontline from $45.00 to $55.00 and gave the company a "buy" rating in a research report on Wednesday, June 24th. Pareto Securities lowered Frontline from a "buy" rating to a "hold" rating and set a $39.46 price target for the company. in a report on Monday, May 25th. Finally, Danske cut shares of Frontline from a "hold" rating to a "sell" rating in a research note on Friday, August 21st. Four research analysts have rated the stock with a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $41.62.

Frontline Price Performance

The company has a current ratio of 1.87, a quick ratio of 1.87 and a debt-to-equity ratio of 0.69. The firm has a 50 day moving average price of $41.29 and a 200-day moving average price of $37.93. The firm has a market capitalization of $11.25 billion, a P/E ratio of 7.58 and a beta of 0.05.

Frontline (NYSE:FRO - Get Free Report) last announced its earnings results on Friday, August 28th. The shipping company reported $2.61 earnings per share for the quarter, missing the consensus estimate of $2.74 by ($0.13). Frontline had a net margin of 49.47% and a return on equity of 44.24%. The firm had revenue of $943.30 million during the quarter, compared to analysts' expectations of $758.89 million. During the same period in the prior year, the company posted $0.36 EPS. The company's revenue was up 96.5% compared to the same quarter last year.

Frontline Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, September 28th. Investors of record on Friday, September 18th will be paid a $2.61 dividend. This represents a $10.44 annualized dividend and a yield of 20.7%. This is an increase from Frontline's previous quarterly dividend of $1.55. The ex-dividend date of this dividend is Friday, September 18th. Frontline's payout ratio is currently 92.95%.

Institutional Investors Weigh In On Frontline

Several large investors have recently modified their holdings of the business. WINTON GROUP Ltd grew its position in shares of Frontline by 72.0% in the 2nd quarter. WINTON GROUP Ltd now owns 12,900 shares of the shipping company's stock valued at $449,000 after buying an additional 5,400 shares during the last quarter. Integrated Wealth Concepts LLC increased its position in Frontline by 13.9% in the 2nd quarter. Integrated Wealth Concepts LLC now owns 22,969 shares of the shipping company's stock valued at $799,000 after acquiring an additional 2,810 shares during the period. NewEdge Advisors LLC increased its holdings in shares of Frontline by 3.7% in the second quarter. NewEdge Advisors LLC now owns 27,115 shares of the shipping company's stock valued at $943,000 after purchasing an additional 957 shares during the period. Amundi raised its position in Frontline by 162.6% during the 2nd quarter. Amundi now owns 847,488 shares of the shipping company's stock worth $29,809,000 after buying an additional 524,804 shares during the last quarter. Finally, Triumph Capital Management raised its holdings in Frontline by 131.0% during the second quarter. Triumph Capital Management now owns 8,931 shares of the shipping company's stock worth $311,000 after purchasing an additional 5,064 shares in the last quarter. Institutional investors own 22.70% of the company's stock.

About Frontline

Frontline plc is a maritime shipping company that owns and operates tankers engaged primarily in the transportation of crude oil and refined petroleum products. Its fleet has included very large crude carriers (VLCCs), Suezmax tankers and long-range product tankers, which transport energy commodities for oil companies, trading firms and other customers worldwide.

The company's vessels operate on international shipping routes, serving major oil-producing, refining and consuming regions.

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