Frontier Group (NASDAQ:ULCC) Trading Up 7.3% Following Better-Than-Expected Earnings

Frontier Group Holdings, Inc. (NASDAQ:ULCC)’s stock price rose 7.3% during trading on Monday following a stronger than expected earnings report. The company traded as high as $9.96 and last traded at $10.03. Approximately 1,999,999 shares were traded during trading, a decline of 23% from the average daily volume of 2,598,872 shares. The stock had previously closed at $9.34.

The company reported $0.23 EPS for the quarter, beating analysts’ consensus estimates of $0.03 by $0.20.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on ULCC shares. Deutsche Bank Aktiengesellschaft raised shares of Frontier Group from a “hold” rating to a “buy” rating and upped their target price for the company from $6.00 to $8.00 in a report on Wednesday, December 11th. Citigroup boosted their target price on Frontier Group from $4.70 to $7.15 and gave the stock a “neutral” rating in a research report on Tuesday, October 22nd. Barclays boosted their price objective on shares of Frontier Group from $10.00 to $14.00 and gave the company an “overweight” rating in a research report on Monday. UBS Group increased their price target on Frontier Group from $6.00 to $8.50 and gave the stock a “neutral” rating in a research note on Tuesday, January 7th. Finally, Morgan Stanley dropped their target price on Frontier Group from $8.00 to $7.00 and set an “equal weight” rating for the company in a research note on Wednesday, December 11th. One equities research analyst has rated the stock with a sell rating, eight have issued a hold rating and two have assigned a buy rating to the company. Based on data from MarketBeat.com, Frontier Group has an average rating of “Hold” and an average target price of $7.41.

Insider Transactions at Frontier Group

In other news, SVP Steve Schuller sold 5,000 shares of the firm’s stock in a transaction on Thursday, January 2nd. The stock was sold at an average price of $7.07, for a total value of $35,350.00. Following the completion of the sale, the senior vice president now owns 47,590 shares of the company’s stock, valued at $336,461.30. This trade represents a 9.51 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CEO Barry Biffle sold 273,000 shares of the company’s stock in a transaction dated Friday, January 17th. The shares were sold at an average price of $8.44, for a total value of $2,304,120.00. Following the completion of the transaction, the chief executive officer now owns 816,817 shares in the company, valued at $6,893,935.48. This represents a 25.05 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 788,000 shares of company stock valued at $6,214,070. Corporate insiders own 81.50% of the company’s stock.

Hedge Funds Weigh In On Frontier Group

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. U S Global Investors Inc. boosted its holdings in Frontier Group by 71.4% during the third quarter. U S Global Investors Inc. now owns 7,564,954 shares of the company’s stock valued at $40,473,000 after acquiring an additional 3,150,768 shares during the period. Geode Capital Management LLC grew its holdings in Frontier Group by 38.4% in the 3rd quarter. Geode Capital Management LLC now owns 1,590,598 shares of the company’s stock valued at $8,512,000 after buying an additional 441,001 shares during the last quarter. Connor Clark & Lunn Investment Management Ltd. increased its position in Frontier Group by 247.8% in the 4th quarter. Connor Clark & Lunn Investment Management Ltd. now owns 926,093 shares of the company’s stock worth $6,585,000 after buying an additional 659,811 shares during the period. Highland Peak Capital LLC acquired a new position in shares of Frontier Group during the fourth quarter worth approximately $6,492,000. Finally, Verition Fund Management LLC boosted its position in shares of Frontier Group by 235.7% in the third quarter. Verition Fund Management LLC now owns 646,243 shares of the company’s stock valued at $3,457,000 after acquiring an additional 453,736 shares during the period.

Frontier Group Stock Performance

The firm has a market cap of $2.28 billion, a price-to-earnings ratio of -252.34 and a beta of 2.35. The firm’s 50 day moving average price is $7.45 and its 200-day moving average price is $5.80. The company has a debt-to-equity ratio of 0.57, a current ratio of 0.53 and a quick ratio of 0.48.

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.