Frontline (NYSE:FRO) Shares Gap Up - What's Next?

Key Points

• Frontline shares jumped 4.6%, opening at $58.28 versus a prior close of $56.10 and later trading near $59.26.
• Analyst views remain mixed: four rate the stock Buy, five Hold, and two Sell. The consensus rating is Hold, with an average price target of $45.37, although BTIG raised its target to $70 and issued a Buy rating.
• Frontline reported strong revenue growth of 96.5% year over year, despite missing quarterly EPS estimates, and increased its quarterly dividend to $2.61, implying a 17.8% annualized yield.

Frontline PLC (NYSE:FRO - Get Free Report) gapped up before the market opened on Monday. The stock had previously closed at $56.10, but opened at $58.28. Frontline shares last traded at $59.2630, with a volume of 752,262 shares traded.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on the company. Danske cut Frontline from a "hold" rating to a "sell" rating in a report on Friday, August 21st. Nordea Equity Research lowered Frontline to a "hold" rating in a research report on Monday, August 31st. DZ Bank cut Frontline from a "hold" rating to a "sell" rating in a research note on Friday, August 21st. BTIG Research increased their target price on Frontline from $55.00 to $70.00 and gave the stock a "buy" rating in a research note on Friday, September 18th. Finally, Weiss Ratings upgraded shares of Frontline from a "buy (b)" rating to a "buy (b+)" rating in a report on Thursday. Four investment analysts have rated the stock with a Buy rating, five have given a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, Frontline currently has a consensus rating of "Hold" and an average target price of $45.37.

Frontline Trading Up 4.6%

The company has a quick ratio of 1.87, a current ratio of 1.87 and a debt-to-equity ratio of 0.69. The business's fifty day moving average is $46.30 and its 200 day moving average is $40.19. The firm has a market capitalization of $13.06 billion, a price-to-earnings ratio of 8.80 and a beta of 0.15.

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

Frontline Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, September 28th. Shareholders of record on Friday, September 18th were paid a $2.61 dividend. The ex-dividend date of this dividend was Friday, September 18th. This represents a $10.44 annualized dividend and a dividend yield of 17.8%. This is a positive change from Frontline's previous quarterly dividend of $1.55. Frontline's dividend payout ratio (DPR) is 156.52%.

Institutional Trading of Frontline

A number of institutional investors have recently modified their holdings of FRO. Arrowstreet Capital Limited Partnership grew its position in 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 purchasing an additional 5,662,172 shares in the last quarter. BlackRock Inc. acquired a new stake in Frontline in the 2nd quarter valued at $50,846,000. Bank of America Corp DE bought a new stake in Frontline during the 2nd quarter worth about $30,123,000. Cooper Creek Partners Management LLC bought a new stake in Frontline during the 1st quarter worth about $26,911,000. Finally, Canada Pension Plan Investment Board bought a new stake in Frontline during the 2nd quarter worth about $22,849,000. 22.70% of the stock is currently owned by institutional investors.

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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