Frontline (NYSE:FRO) Shares Gap Up – Still a Buy?

Frontline plc (NYSE:FRO)’s stock price gapped up prior to trading on Friday . The stock had previously closed at $17.30, but opened at $18.22. Frontline shares last traded at $17.87, with a volume of 1,098,552 shares changing hands.

Wall Street Analyst Weigh In

Several analysts have issued reports on the stock. Kepler Capital Markets lowered shares of Frontline from a “buy” rating to a “hold” rating and set a $15.83 price target on the stock. in a research report on Thursday, December 12th. Jefferies Financial Group dropped their target price on shares of Frontline from $26.00 to $20.00 and set a “buy” rating on the stock in a report on Tuesday, December 17th. One analyst has rated the stock with a sell rating, two have issued a hold rating, three have assigned a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $24.03.

Frontline Stock Performance

The stock has a market capitalization of $3.94 billion and a P/E ratio of 7.22. The stock’s 50-day simple moving average is $15.96 and its 200 day simple moving average is $19.67. 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 (NYSE:FRO) last announced its earnings results on Wednesday, November 27th. The shipping company reported $0.34 EPS for the quarter, missing the consensus estimate of $0.39 by ($0.05). Frontline had a return on equity of 19.25% and a net margin of 25.64%. During the same quarter in the prior year, the company posted $0.36 EPS. Research analysts expect that Frontline plc will post 1.78 EPS for the current fiscal year.

Frontline Cuts Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, December 31st. Stockholders of record on Wednesday, December 11th were paid a dividend of $0.34 per share. The ex-dividend date of this dividend was Wednesday, December 11th. This represents a $1.36 dividend on an annualized basis and a dividend yield of 7.69%. Frontline’s dividend payout ratio (DPR) is currently 55.51%.

Institutional Trading of Frontline

Several hedge funds have recently added to or reduced their stakes in the company. International Assets Investment Management LLC bought a new position in Frontline during the 3rd quarter worth $783,000. Range Financial Group LLC acquired a new position in shares of Frontline in the fourth quarter valued at about $579,000. Charles Schwab Investment Management Inc. increased its position in Frontline by 102.6% during the third quarter. Charles Schwab Investment Management Inc. now owns 43,494 shares of the shipping company’s stock worth $994,000 after acquiring an additional 22,022 shares during the period. Clear Harbor Asset Management LLC acquired a new stake in Frontline in the 4th quarter worth about $214,000. Finally, Harbour Capital Advisors LLC bought a new stake in Frontline in the 4th quarter valued at about $439,000. 22.70% of the stock is owned by institutional investors and hedge funds.

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.