Frontline (NYSE:FRO) Hits New 12-Month High - Should You Buy?

Key Points

• Frontline reached a new 52-week high of $59.75, well above its 50-day and 200-day moving averages, signaling strong recent momentum.
• Analyst sentiment is mixed: four analysts rate the stock Buy, five Hold and two Sell, resulting in a consensus Hold rating and a $45.37 target price—below the current share price.
• Frontline reported sharply higher revenue, up 96.5% year over year, and increased its quarterly dividend to $2.61 per share, implying a 17.7% annualized yield, though quarterly EPS missed estimates.

Frontline PLC (NYSE:FRO - Get Free Report) hit a new 52-week high during mid-day trading on Wednesday. The company traded as high as $59.75 and last traded at $59.11, with a volume of 3,351,103 shares trading hands. The stock had previously closed at $59.19.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on FRO shares. Danske cut shares of Frontline from a "hold" rating to a "sell" rating in a research note on Friday, August 21st. 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 $55.00 to $70.00 and gave the company a "buy" rating in a research report on Friday, September 18th. Wall Street Zen upgraded shares of Frontline from a "buy" rating to a "strong-buy" rating in a research report on Saturday, August 29th. Finally, Nordea Equity Research cut shares of Frontline to a "hold" rating in a research note on Monday, August 31st. Four equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $45.37.

Frontline Stock Performance

The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.87 and a current ratio of 1.87. The company has a market capitalization of $13.16 billion, a P/E ratio of 8.86 and a beta of 0.15. The business's fifty day simple moving average is $47.09 and its 200-day simple moving average is $40.54.

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

Frontline Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, September 28th. Investors of record on Friday, September 18th were paid a dividend of $2.61 per share. The ex-dividend date of this dividend was Friday, September 18th. This is a positive change from Frontline's previous quarterly dividend of $1.55. This represents a $10.44 dividend on an annualized basis and a yield of 17.7%. Frontline's payout ratio is currently 156.52%.

Hedge Funds Weigh In On Frontline

Institutional investors have recently bought and sold shares of the business. Arrowstreet Capital Limited Partnership boosted its stake in Frontline by 4,659.9% during the first quarter. Arrowstreet Capital Limited Partnership now owns 5,783,681 shares of the shipping company's stock worth $202,080,000 after buying an additional 5,662,172 shares during the period. BlackRock Inc. bought a new position in Frontline during the second quarter valued at $50,846,000. Bank of America Corp DE bought a new position in Frontline during the second quarter valued at $30,123,000. Cooper Creek Partners Management LLC bought a new position in Frontline during the first quarter valued at $26,911,000. Finally, Canada Pension Plan Investment Board purchased a new stake in shares of Frontline in the second quarter valued at $22,849,000. Institutional investors own 22.70% of the company's stock.

About Frontline

Frontline plc NYSE: FRO is a maritime transportation company that owns and operates a fleet of crude oil and refined petroleum product tankers. Its vessels transport energy commodities for oil companies, commodity traders, refineries and other customers in international markets.

The company's fleet primarily includes very large crude carriers (VLCCs), Suezmax tankers and Aframax or LR2 tankers. Frontline generally employs its vessels through a combination of voyage charters, time charters and commercial pool arrangements, allowing it to serve major global shipping routes and connect oil-producing regions with refineries and consuming markets.

Frontline has roots in the Norwegian shipping industry and is associated with shipping entrepreneur John Fredriksen.

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