UBS Group Cuts Frontier Group (NASDAQ:ULCC) Price Target to $3.50

Key Points

• UBS Group has lowered its price target for Frontier Group (NASDAQ:ULCC) from $4.00 to $3.50, indicating a potential upside of 10.58% from the previous close.
• Frontier Group's stock was down 8.3% during trading, hitting $3.17, with a market capitalization of $720.86 million.
• The company reported a quarterly loss of ($0.31) EPS, falling short of analysts' expectations, and its revenue was down 4.5% year-over-year.

Frontier Group (NASDAQ:ULCC - Get Free Report) had its price target lowered by investment analysts at UBS Group from $4.00 to $3.50 in a note issued to investors on Wednesday,Benzinga reports. The brokerage presently has a "neutral" rating on the stock. UBS Group's price objective suggests a potential upside of 4.79% from the company's current price.

A number of other analysts also recently weighed in on ULCC. Barclays reduced their target price on shares of Frontier Group from $14.00 to $10.00 and set an "overweight" rating on the stock in a report on Tuesday, April 8th. Evercore ISI decreased their price objective on Frontier Group from $7.00 to $5.00 and set an "in-line" rating on the stock in a research report on Friday, April 11th. Morgan Stanley lowered their price objective on Frontier Group from $10.00 to $9.00 and set an "equal weight" rating for the company in a research note on Monday, May 19th. Citigroup decreased their price target on Frontier Group from $7.25 to $4.00 and set a "neutral" rating on the stock in a report on Friday, April 11th. Finally, Bank of America lowered their price target on Frontier Group from $4.75 to $4.00 and set a "neutral" rating for the company in a research report on Tuesday, July 1st. Nine equities research analysts have rated the stock with a hold rating and one has assigned a buy rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $5.61.

Frontier Group Stock Performance

ULCC stock traded up $0.02 during mid-day trading on Wednesday, hitting $3.34. The company had a trading volume of 3,550,601 shares, compared to its average volume of 3,867,484. The company has a quick ratio of 0.36, a current ratio of 0.41 and a debt-to-equity ratio of 0.53. Frontier Group has a 12-month low of $2.79 and a 12-month high of $10.26. The company has a 50-day moving average price of $3.93 and a 200 day moving average price of $4.95.

Frontier Group (NASDAQ:ULCC - Get Free Report) last released its quarterly earnings results on Tuesday, August 5th. The company reported ($0.31) earnings per share for the quarter, missing the consensus estimate of ($0.28) by ($0.03). The firm had revenue of $929.00 million for the quarter, compared to analysts' expectations of $951.92 million. Frontier Group had a negative net margin of 0.87% and a negative return on equity of 12.56%. The business's quarterly revenue was down 4.5% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.14 EPS. On average, research analysts predict that Frontier Group will post 0.91 EPS for the current year.

Insiders Place Their Bets

In other news, SVP Alexandre Clerc sold 12,000 shares of the business's stock in a transaction 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 directly owned 11,912 shares of the company's stock, valued at approximately $46,337.68. The trade was a 50.18% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 48.00% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Frontier Group

A number of hedge funds have recently added to or reduced their stakes in the stock. American Century Companies Inc. bought a new stake in shares of Frontier Group during the fourth quarter valued at approximately $379,000. KLP Kapitalforvaltning AS purchased a new position in Frontier Group during the 4th quarter worth $50,000. Vanguard Group Inc. raised its position in Frontier Group by 0.3% during the 4th quarter. Vanguard Group Inc. now owns 8,186,633 shares of the company's stock valued at $58,207,000 after purchasing an additional 26,682 shares in the last quarter. JPMorgan Chase & Co. lifted its holdings in shares of Frontier Group by 162.2% in the 4th quarter. JPMorgan Chase & Co. now owns 50,902 shares of the company's stock worth $362,000 after buying an additional 31,492 shares during the period. Finally, Geode Capital Management LLC grew its position in shares of Frontier Group by 2.2% during the 4th quarter. Geode Capital Management LLC now owns 1,625,953 shares of the company's stock worth $11,564,000 after buying an additional 35,355 shares in 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.