Traders Buy Large Volume of Call Options on Frontline (NYSE:FRO)

Frontline plc (NYSE:FRO - Get Free Report) was the target of some unusual options trading activity on Wednesday. Investors acquired 7,286 call options on the company. This is an increase of 60% compared to the average volume of 4,548 call options.

Institutional Trading of Frontline

Several hedge funds and other institutional investors have recently bought and sold shares of FRO. Jones Financial Companies Lllp purchased a new stake in Frontline in the fourth quarter worth approximately $31,000. SVB Wealth LLC purchased a new stake in Frontline in the first quarter worth approximately $32,000. Bayforest Capital Ltd purchased a new stake in Frontline in the first quarter worth approximately $34,000. Signaturefd LLC boosted its stake in Frontline by 59.3% in the first quarter. Signaturefd LLC now owns 2,657 shares of the shipping company's stock worth $39,000 after buying an additional 989 shares in the last quarter. Finally, Golden State Wealth Management LLC purchased a new stake in Frontline in the fourth quarter worth approximately $84,000. Hedge funds and other institutional investors own 22.70% of the company's stock.

Frontline Price Performance

FRO stock traded down $0.02 during midday trading on Thursday, reaching $17.53. The company had a trading volume of 1,778,052 shares, compared to its average volume of 2,502,508. The company has a debt-to-equity ratio of 1.44, a current ratio of 1.43 and a quick ratio of 1.43. Frontline has a 1 year low of $12.40 and a 1 year high of $28.83. The company has a market capitalization of $3.90 billion, a P/E ratio of 7.15 and a beta of 0.24. The firm has a 50-day moving average price of $16.17 and a 200-day moving average price of $16.36.

Frontline (NYSE:FRO - Get Free Report) last issued its earnings results on Friday, May 23rd. The shipping company reported $0.18 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.18. The business had revenue of $427.87 million during the quarter, compared to analyst estimates of $252.26 million. Frontline had a return on equity of 19.25% and a net margin of 25.64%. Frontline's revenue for the quarter was down 26.0% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.62 earnings per share. On average, research analysts anticipate that Frontline will post 1.78 earnings per share for the current fiscal year.

Frontline Cuts Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, March 31st. Shareholders of record on Friday, March 14th were paid a $0.20 dividend. This represents a $0.80 annualized dividend and a yield of 4.56%. The ex-dividend date was Friday, March 14th. Frontline's dividend payout ratio is currently 46.15%.

Analysts Set New Price Targets

A number of research firms have commented on FRO. Evercore ISI cut their price target on shares of Frontline from $22.00 to $20.00 and set an "outperform" rating for the company in a research note on Tuesday, April 22nd. Kepler Capital Markets set a $12.49 price target on shares of Frontline in a research note on Thursday, March 27th. Two research analysts have rated the stock with a sell rating, three have assigned a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, Frontline currently has a consensus rating of "Moderate Buy" and an average price target of $20.62.

About Frontline

Frontline plc, a shipping company, engages in the seaborne transportation of crude oil and oil products worldwide. It owns and operates oil and product tankers. As of December 31, 2022, the company operated a fleet of 70 vessels. It is also involved in the charter, purchase, and sale of vessels. The company was founded in 1985 and is based in Limassol, Cyprus.