Frontline (NYSE:FRO) Shares Gap Down - Here's What Happened

Key Points

• Frontline shares gapped down from a prior close of $54.03 to open at $51.19, later trading near $51.45 on volume of roughly 1 million shares.
• Analyst sentiment is mixed: BTIG raised its price target to $70 with a Buy rating, while other firms downgraded the stock; the consensus rating remains Hold with a $45.37 price target.
• Frontline reported revenue growth of 96.5% year over year but narrowly missed quarterly EPS estimates. The company increased its quarterly dividend to $2.61 per share, implying a 20.4% annualized yield.

Shares of Frontline PLC (NYSE:FRO - Get Free Report) gapped down prior to trading on Friday . The stock had previously closed at $54.03, but opened at $51.19. Frontline shares last traded at $51.4490, with a volume of 1,001,699 shares.

Analysts Set New Price Targets

Several brokerages have issued reports on FRO. BTIG Research boosted their price target on Frontline from $55.00 to $70.00 and gave the company a "buy" rating in a research note on Friday. Pareto Securities downgraded shares of Frontline from a "buy" rating to a "hold" rating and set a $39.46 price objective for the company. in a research report on Monday, May 25th. Weiss Ratings upgraded shares of Frontline from a "buy (b-)" rating to a "buy (b)" rating in a research note on Friday, August 28th. Nordea Equity Research downgraded shares of Frontline to a "hold" rating in a research report on Monday, August 31st. Finally, Danske lowered 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 assigned a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, Frontline has a consensus rating of "Hold" and a consensus price target of $45.37.

Frontline Price Performance

The business has a 50-day moving average of $42.23 and a 200 day moving average of $38.27. 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 market capitalization of $11.39 billion, a P/E ratio of 7.68 and a beta of 0.05.

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

Frontline Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, September 28th. Stockholders of record on Friday, September 18th will be given a dividend of $2.61 per share. The ex-dividend date of this dividend is 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 dividend yield of 20.4%. Frontline's payout ratio is currently 92.95%.

Institutional Trading of Frontline

Hedge funds have recently bought and sold shares of the business. Arrowstreet Capital Limited Partnership lifted its stake in shares of Frontline by 4,659.9% in 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 in the last quarter. BlackRock Inc. acquired a new stake in shares of Frontline in the 2nd quarter worth about $50,846,000. Renaissance Technologies LLC lifted its position in Frontline by 133.5% in the 1st quarter. Renaissance Technologies LLC now owns 927,838 shares of the shipping company's stock valued at $32,344,000 after acquiring an additional 530,500 shares in the last quarter. Bank of America Corp DE acquired a new position in Frontline during the 2nd quarter valued at about $30,123,000. Finally, Amundi boosted its stake in Frontline by 162.6% during the 2nd quarter. Amundi now owns 847,488 shares of the shipping company's stock valued at $29,809,000 after purchasing an additional 524,804 shares during the last quarter. Institutional investors and hedge funds own 22.70% of the company's stock.

Frontline Company Profile

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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