Frontline (NYSE:FRO) Trading 5.7% Higher - Time to Buy?

Key Points

• Frontline shares rose 5.7% to $54.55 on heavier-than-average trading, lifting the company’s market capitalization to approximately $12.14 billion.
• Analyst sentiment remains mixed: four analysts rate the stock Buy, five Hold, and two Sell, resulting in an average Hold rating and a $41.62 price target—well below its current price.
• Frontline reported a 96.5% year-over-year revenue increase to $943.3 million and raised its quarterly dividend to $2.61 per share, implying a 19.1% annualized yield, though quarterly EPS of $2.61 fell short of estimates.

Shares of Frontline PLC (NYSE:FRO - Get Free Report) shot up 5.7% on Wednesday . The company traded as high as $54.69 and last traded at $54.5480. Approximately 3,353,445 shares changed hands during trading, an increase of 4% from the average daily volume of 3,238,533 shares. The stock had previously closed at $51.59.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on the stock. Weiss Ratings upgraded shares of Frontline from a "buy (b-)" rating to a "buy (b)" rating in a research note on Friday, August 28th. Danske lowered shares of Frontline from a "hold" rating to a "sell" rating in a research note on Friday, August 21st. Wall Street Zen raised shares of Frontline from a "buy" rating to a "strong-buy" rating in a report on Saturday, August 29th. 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 note on Monday, May 25th. 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 given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, Frontline has an average rating of "Hold" and an average price target of $41.62.

Frontline Trading Up 5.7%

The company's fifty day moving average is $41.57 and its two-hundred day moving average is $38.04. The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.87 and a current ratio of 1.87. The company has a market cap of $12.14 billion, a price-to-earnings ratio of 8.17 and a beta of 0.05.

Frontline (NYSE:FRO - Get Free Report) last announced 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 business had revenue of $943.30 million for the quarter, compared to analyst estimates of $758.89 million. Frontline had a net margin of 49.47% and a return on equity of 44.24%. The business's revenue was up 96.5% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.36 earnings per share.

Frontline Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 28th. Investors of record on Friday, September 18th will be given a dividend of $2.61 per share. This is a boost from Frontline's previous quarterly dividend of $1.55. This represents a $10.44 dividend on an annualized basis and a yield of 19.1%. The ex-dividend date is Friday, September 18th. Frontline's payout ratio is presently 92.95%.

Hedge Funds Weigh In On Frontline

Several institutional investors and hedge funds have recently modified their holdings of the stock. BlackRock Inc. acquired a new position in shares of Frontline during the 2nd quarter worth approximately $50,846,000. Amundi lifted its position in shares of 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 buying an additional 524,804 shares in the last quarter. Energy Income Partners LLC purchased a new position in shares of Frontline during the 2nd quarter valued at approximately $1,202,000. Empowered Funds LLC acquired a new stake in Frontline in the 2nd quarter valued at $2,950,000. Finally, Sei Investments Co. acquired a new stake in Frontline in the 1st quarter valued at $948,000. 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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