Short Interest in Frontier Group Holdings, Inc. (NASDAQ:ULCC) Rises By 9,446.8%

Key Points

• Short interest in Frontier Group Holdings surged by 9,446.8% in July, reaching 16.43 million shares, indicating a significant increase in bearish sentiment towards the stock.
• The company's stock price decreased by 8.6%, trading at $4.01 and reflecting a substantial drop from its 12-month high of $10.26.
• Frontier Group reported a net margin of 1.78% and a poor revenue performance, with actual revenue of $912 million falling short of analyst estimates of $996 million.

Frontier Group Holdings, Inc. (NASDAQ:ULCC - Get Free Report) saw a large increase in short interest in the month of July. As of July 15th, there was short interest totaling 16,430,000 shares, anincreaseof9,446.8% from the June 30th total of 172,100 shares. Based on an average daily trading volume, of 3,730,000 shares, the days-to-cover ratio is currently 4.4 days. Currently,19.7% of the company's shares are short sold. Currently,19.7% of the company's shares are short sold. Based on an average daily trading volume, of 3,730,000 shares, the days-to-cover ratio is currently 4.4 days.

Frontier Group Stock Down 8.6%

ULCC traded down $0.38 during trading on Friday, reaching $4.01. The company had a trading volume of 3,053,123 shares, compared to its average volume of 3,599,785. The company has a debt-to-equity ratio of 0.48, a current ratio of 0.49 and a quick ratio of 0.45. Frontier Group has a 12 month low of $2.79 and a 12 month high of $10.26. The business's fifty day moving average price is $3.97 and its 200 day moving average price is $5.18. The company has a market cap of $912.18 million, a P/E ratio of 13.84 and a beta of 2.60.

Frontier Group (NASDAQ:ULCC - Get Free Report) last announced its quarterly earnings results on Thursday, May 1st. The company reported ($0.19) earnings per share for the quarter, beating analysts' consensus estimates of ($0.22) by $0.03. Frontier Group had a net margin of 1.78% and a return on equity of 5.53%. The firm had revenue of $912.00 million for the quarter, compared to analyst estimates of $996.05 million. During the same quarter in the previous year, the firm posted ($0.09) earnings per share. The business's revenue was up 5.4% on a year-over-year basis. Equities analysts anticipate that Frontier Group will post 0.91 EPS for the current year.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on ULCC shares. Citigroup lowered their price target on shares of Frontier Group from $7.25 to $4.00 and set a "neutral" rating for the company in a research report on Friday, April 11th. Morgan Stanley lowered their price target on shares of Frontier Group from $10.00 to $9.00 and set an "equal weight" rating for the company in a research report on Monday, May 19th. Bank of America reduced their price objective on shares of Frontier Group from $4.75 to $4.00 and set a "neutral" rating on the stock in a research note on Tuesday, July 1st. Evercore ISI reduced their price objective on shares of Frontier Group from $7.00 to $5.00 and set an "in-line" rating on the stock in a research note on Friday, April 11th. Finally, Susquehanna reduced their price objective on shares of Frontier Group from $9.00 to $3.00 and set a "neutral" rating on the stock in a research note on Monday, April 7th. Nine research analysts have rated the stock with a hold rating and one has assigned a buy rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $5.67.

Insider Activity at Frontier Group

In other news, SVP Alexandre Clerc sold 12,000 shares of Frontier Group stock in a transaction that occurred on Monday, June 2nd. The shares were sold at an average price of $3.89, for a total transaction of $46,680.00. Following the completion of the sale, the senior vice president owned 11,912 shares in the company, valued at $46,337.68. The trade was a 50.18% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 48.00% of the stock is currently owned by corporate insiders.

Institutional Trading of Frontier Group

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Price T Rowe Associates Inc. MD raised its holdings in shares of Frontier Group by 8.2% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 30,442 shares of the company's stock valued at $217,000 after purchasing an additional 2,296 shares during the last quarter. Voleon Capital Management LP raised its holdings in shares of Frontier Group by 9.4% in the first quarter. Voleon Capital Management LP now owns 38,692 shares of the company's stock valued at $168,000 after purchasing an additional 3,335 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in shares of Frontier Group by 8.4% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 75,359 shares of the company's stock valued at $536,000 after purchasing an additional 5,834 shares during the last quarter. AQR Capital Management LLC raised its holdings in shares of Frontier Group by 46.0% in the first quarter. AQR Capital Management LLC now owns 18,777 shares of the company's stock valued at $81,000 after purchasing an additional 5,913 shares during the last quarter. Finally, CWM LLC raised its holdings in shares of Frontier Group by 165.0% in the second quarter. CWM LLC now owns 10,042 shares of the company's stock valued at $36,000 after purchasing an additional 6,253 shares during the last quarter.

Frontier Group Company Profile

Frontier Group Holdings, Inc, provides low-fare passenger airline services to leisure travelers in the United States and Latin America. The company sells its products through direct distribution channels, including its website, mobile app, and contact centers. As of December 31, 2023, it had a fleet of 136 Airbus single-aisle aircrafts.

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