Frontline (NYSE:FRO) Sets New 52-Week High - Time to Buy?

Key Points

• Frontline shares hit a new 52-week high of $45.59 and were recently trading about 2.5% higher, above their 50-day and 200-day moving averages.
• Analyst sentiment remains mixed, with four Buy, five Hold and two Sell ratings; the consensus rating is Hold with a $41.62 target price, below the current share price.
• Frontline reported revenue growth of 96.5% year over year to $943.3 million, though earnings per share of $2.61 missed estimates. The company raised its quarterly dividend to $2.61, implying a 23% annualized yield.

Frontline PLC (NYSE:FRO - Get Free Report) hit a new 52-week high on Thursday . The company traded as high as $45.59 and last traded at $45.4480, with a volume of 1839620 shares. The stock had previously closed at $44.32.

Analyst Ratings Changes

Several analysts have issued reports on FRO shares. Pareto Securities lowered Frontline from a "buy" rating to a "hold" rating and set a $39.46 target price on the stock. in a research note on Monday, May 25th. Danske lowered Frontline from a "hold" rating to a "sell" rating in a report on Friday, August 21st. Wall Street Zen upgraded Frontline from a "buy" rating to a "strong-buy" rating in a research report on Saturday, August 29th. BTIG Research lifted 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. Finally, Nordea Equity Research cut Frontline to a "hold" rating in a report on Monday. Four investment analysts have rated the stock with a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Frontline currently has a consensus rating of "Hold" and a consensus target price of $41.62.

Frontline Trading Up 2.5%

The company has a current ratio of 1.87, a quick ratio of 2.03 and a debt-to-equity ratio of 0.69. The firm has a market cap of $10.12 billion, a PE ratio of 6.81 and a beta of 0.05. The firm has a fifty day simple moving average of $39.49 and a two-hundred day simple moving average of $37.14.

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 analysts' consensus estimates of $2.74 by ($0.13). Frontline had a net margin of 49.47% and a return on equity of 44.24%. The company had revenue of $943.30 million for the quarter, compared to the consensus estimate of $758.89 million. During the same period in the previous year, the firm posted $0.36 EPS. The company's revenue for the quarter was up 96.5% on a year-over-year basis.

Frontline Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, September 28th. Shareholders of record on Friday, September 18th will be issued a $2.61 dividend. This represents a $10.44 annualized dividend and a yield of 23.0%. This is a positive change from Frontline's previous quarterly dividend of $1.55. The ex-dividend date of this dividend is Friday, September 18th. Frontline's dividend payout ratio is presently 92.95%.

Institutional Investors Weigh In On Frontline

Several institutional investors and hedge funds have recently made changes to their positions in the company. Arrowstreet Capital Limited Partnership boosted its position in shares of 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 valued at $202,080,000 after buying an additional 5,662,172 shares during the last quarter. BlackRock Inc. bought a new stake in Frontline during the 2nd quarter worth approximately $50,846,000. Bank of America Corp DE bought a new stake in Frontline during the second quarter valued at about $30,123,000. Cooper Creek Partners Management LLC purchased a new position in Frontline in the 1st quarter worth approximately $26,911,000. Finally, Voloridge Investment Management LLC bought a new position in shares of Frontline during the fourth quarter worth $15,676,000. Institutional investors own 22.70% of the company's stock.

Frontline Company Profile

Frontline Ltd. NYSE: FRO is a leading global shipping company specializing in the seaborne transportation of crude oil and petroleum products. The company's core business activities encompass the ownership and operation of very large crude carriers (VLCCs), Suezmax tankers and Aframax vessels. Through long-term charters, spot market operations and time charters, Frontline provides flexible shipping solutions that cater to a diverse set of energy producers, refiners and trading houses worldwide.

Frontline's fleet is geared toward high-capacity, ocean-going tankers capable of carrying large volumes of crude oil over intercontinental distances.

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