Frontline (NYSE:FRO) Sets New 52-Week High - What's Next?

Key Points

• Frontline shares reached a new 52-week high of $55.64 and were last trading around $55.50, up 4.3%, giving the company a market capitalization of approximately $12.32 billion.
• Analyst sentiment remains mixed: BTIG raised its price target to $70 and several firms upgraded the stock, but others downgraded it. The overall consensus rating is “Hold”, with a $45.37 average price target.
• Frontline reported sharply higher quarterly revenue of $943.3 million, up 96.5% year over year, despite missing earnings estimates. The company increased its quarterly dividend to $2.61 per share, implying an annualized yield of about 18.9%.

Frontline PLC (NYSE:FRO - Get Free Report)'s share price reached a new 52-week high on Thursday. The stock traded as high as $55.64 and last traded at $55.5010, with a volume of 708651 shares trading hands. The stock had previously closed at $53.06.

Analysts Set New Price Targets

Several brokerages recently weighed in on FRO. Wall Street Zen upgraded Frontline from a "buy" rating to a "strong-buy" rating in a research report on Saturday, August 29th. BTIG Research upped their price target on Frontline from $55.00 to $70.00 and gave the company a "buy" rating in a research note on Friday, September 18th. DZ Bank cut Frontline from a "hold" rating to a "sell" rating in a report on Friday, August 21st. Weiss Ratings raised Frontline from a "buy (b-)" rating to a "buy (b)" rating in a research report on Friday, August 28th. Finally, Nordea Equity Research lowered shares of Frontline to a "hold" rating in a report 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 assigned a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $45.37.

Frontline Stock Up 4.3%

The business has a 50 day simple moving average of $45.62 and a 200 day simple moving average of $39.86. The company has a market capitalization of $12.32 billion, a price-to-earnings ratio of 8.29 and a beta of 0.15. The company has a debt-to-equity ratio of 0.69, a current ratio of 1.87 and a quick ratio of 1.87.

Frontline (NYSE:FRO - Get Free Report) last issued its quarterly earnings data 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 firm had revenue of $943.30 million during the quarter, compared to analyst estimates of $758.89 million. During the same period in the previous year, the firm posted $0.36 earnings per share. The company's quarterly revenue was up 96.5% compared to the same quarter last year.

Frontline Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, September 28th. Shareholders of record on Friday, September 18th were paid a dividend of $2.61 per share. This represents a $10.44 dividend on an annualized basis and a yield of 18.9%. This is a boost from Frontline's previous quarterly dividend of $1.55. The ex-dividend date was Friday, September 18th. Frontline's payout ratio is currently 156.52%.

Institutional Trading of Frontline

Hedge funds have recently made changes to their positions in the business. WINTON GROUP Ltd boosted its stake in shares of Frontline by 72.0% in the second quarter. WINTON GROUP Ltd now owns 12,900 shares of the shipping company's stock valued at $449,000 after purchasing an additional 5,400 shares during the period. Integrated Wealth Concepts LLC increased its stake in Frontline by 13.9% during the 2nd quarter. Integrated Wealth Concepts LLC now owns 22,969 shares of the shipping company's stock worth $799,000 after buying an additional 2,810 shares during the period. NewEdge Advisors LLC increased its stake in Frontline by 3.7% during the 2nd quarter. NewEdge Advisors LLC now owns 27,115 shares of the shipping company's stock worth $943,000 after buying an additional 957 shares during the period. Amundi lifted its holdings 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 in the last quarter. Finally, Triumph Capital Management lifted its holdings in Frontline by 131.0% during the 2nd quarter. Triumph Capital Management now owns 8,931 shares of the shipping company's stock worth $311,000 after buying an additional 5,064 shares in the last quarter. Institutional investors and hedge funds 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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