Frontier Group (NASDAQ:ULCC) Shares Gap Up After Strong Earnings

Frontier Group Holdings, Inc. (NASDAQ:ULCC) shares gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $5.84, but opened at $6.64. Frontier Group shares last traded at $6.04, with a volume of 409,985 shares.

The company reported ($0.09) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.18) by $0.09. The company had revenue of $865.00 million for the quarter, compared to the consensus estimate of $859.21 million. Frontier Group had a positive return on equity of 3.53% and a negative net margin of 0.67%. Frontier Group’s revenue for the quarter was up 2.0% on a year-over-year basis. During the same quarter in the prior year, the business posted ($0.06) earnings per share.

Analysts Set New Price Targets

A number of equities analysts have weighed in on the stock. Susquehanna upped their price objective on shares of Frontier Group from $5.00 to $7.00 and gave the stock a “neutral” rating in a research report on Friday, February 9th. TD Cowen decreased their price target on shares of Frontier Group from $8.00 to $6.50 and set a “hold” rating on the stock in a research note on Friday. Bank of America reiterated a “neutral” rating and issued a $6.00 price objective (down from $8.00) on shares of Frontier Group in a report on Tuesday, January 9th. Evercore ISI increased their target price on Frontier Group from $7.00 to $8.50 and gave the company an “in-line” rating in a report on Thursday, April 4th. Finally, Morgan Stanley reaffirmed an “equal weight” rating and issued a $8.00 price target (down from $10.00) on shares of Frontier Group in a research note on Monday, January 8th. Nine analysts have rated the stock with a hold rating and two have assigned a buy rating to the company’s stock. According to MarketBeat, Frontier Group presently has an average rating of “Hold” and an average target price of $7.28.

Insiders Place Their Bets

In related news, CEO Barry Biffle sold 151,620 shares of the company’s stock in a transaction dated Tuesday, March 5th. The shares were sold at an average price of $7.72, for a total value of $1,170,506.40. Following the completion of the sale, the chief executive officer now owns 772,981 shares of the company’s stock, valued at $5,967,413.32. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 81.50% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. PNC Financial Services Group Inc. raised its position in Frontier Group by 632.0% in the third quarter. PNC Financial Services Group Inc. now owns 5,768 shares of the company’s stock valued at $28,000 after purchasing an additional 4,980 shares during the period. Signaturefd LLC acquired a new position in Frontier Group in the third quarter valued at about $28,000. CWM LLC boosted its stake in Frontier Group by 1,705.7% during the third quarter. CWM LLC now owns 6,627 shares of the company’s stock worth $32,000 after buying an additional 6,260 shares during the period. Private Advisor Group LLC acquired a new stake in shares of Frontier Group during the fourth quarter valued at about $59,000. Finally, Zurcher Kantonalbank Zurich Cantonalbank increased its position in shares of Frontier Group by 200.4% during the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 11,666 shares of the company’s stock valued at $64,000 after acquiring an additional 7,782 shares during the last quarter.

Frontier Group Trading Down 3.0 %

The company has a quick ratio of 0.48, a current ratio of 0.53 and a debt-to-equity ratio of 0.50. The business’s 50 day moving average price is $7.11 and its 200-day moving average price is $5.71.

About Frontier Group

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.