Frontline (NYSE:FRO) Shares Down 7.1% - Time to Sell?

Key Points

• Frontline shares fell 7.1% to about $52.88, with trading volume 36% below the average daily level.
• Analyst sentiment is mixed: four analysts rate the stock Buy, five Hold and two Sell, producing an average Hold rating and a $48.12 average price target.
• Frontline reported strong revenue growth of 96.5% year over year and raised its quarterly dividend to $2.61, equivalent to a 19.8% annualized yield, although earnings missed consensus estimates.

Frontline PLC (NYSE:FRO - Get Free Report) shares traded down 7.1% on Monday. The stock traded as low as $52.83 and last traded at $52.8790. 2,161,801 shares traded hands during trading, a decline of 36% from the average daily volume of 3,398,201 shares. The stock had previously closed at $56.90.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on FRO. BTIG Research upped their target price 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. Danske downgraded shares of Frontline from a "hold" rating to a "sell" rating in a research note on Friday, August 21st. Wall Street Zen upgraded shares of Frontline from a "buy" rating to a "strong-buy" rating in a research note on Saturday, August 29th. Finally, Evercore set a $53.00 price target on Frontline in a research report on Tuesday, October 27th. Four 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 stock. Based on data from MarketBeat.com, Frontline has an average rating of "Hold" and an average target price of $48.12.

Frontline Price Performance

The company has a 50-day moving average of $50.31 and a 200 day moving average of $39.10. The firm has a market cap of $11.72 billion, a P/E ratio of 7.89 and a beta of 0.15. The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.87 and a current ratio of 1.87.

Frontline (NYSE:FRO - Get Free Report) last released its quarterly earnings results on Friday, August 28th. The shipping company reported $2.61 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.74 by ($0.13). The business had revenue of $943.30 million during 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%. The business's quarterly revenue was up 96.5% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.36 earnings per share.

Frontline Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, September 28th. Investors of record on Friday, September 18th were given a $2.61 dividend. The ex-dividend date was Friday, September 18th. This represents a $10.44 annualized dividend and a dividend yield of 19.8%. This is a boost from Frontline's previous quarterly dividend of $1.55. Frontline's payout ratio is presently 156.52%.

Institutional Trading of Frontline

Several hedge funds have recently bought and sold shares of FRO. Reyes Financial Architecture Inc. bought a new stake in Frontline in the 3rd quarter valued at $25,000. Fiduciary Financial Advisors bought a new position in Frontline during the 2nd quarter worth about $28,000. Assetmark Inc. raised its stake in shares of Frontline by 278.6% in the 1st quarter. Assetmark Inc. now owns 973 shares of the shipping company's stock valued at $34,000 after purchasing an additional 716 shares during the period. Parallel Advisors LLC lifted its holdings in shares of Frontline by 58.9% in the first quarter. Parallel Advisors LLC now owns 1,311 shares of the shipping company's stock valued at $46,000 after purchasing an additional 486 shares in the last quarter. Finally, Global Retirement Partners LLC bought a new stake in shares of Frontline in the second quarter valued at about $48,000. 22.70% of the stock is currently owned by institutional investors and hedge funds.

Frontline Company Profile

Frontline plc is a maritime shipping company that owns and operates tankers used to transport crude oil and refined petroleum products worldwide. The company's fleet includes very large crude carriers (VLCCs), Suezmax tankers, and Aframax and Long Range 2 (LR2) vessels, serving international energy markets.

Frontline's vessels are employed through a combination of voyage charters, time charters and pool arrangements. Its operations connect major oil-producing regions with refineries and consuming markets across the Atlantic, Pacific and other global trade routes.

Founded in 1985, Frontline is incorporated in Bermuda and has corporate operations based in Limassol, Cyprus.

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