Frontier Group (NASDAQ:ULCC) Shares Down 5.3% Following Analyst Downgrade

Frontier Group Holdings, Inc. (NASDAQ:ULCC)’s stock price dropped 5.3% during trading on Thursday after UBS Group lowered their price target on the stock from $10.00 to $7.00. UBS Group currently has a neutral rating on the stock. Frontier Group traded as low as $5.73 and last traded at $5.65. Approximately 332,323 shares traded hands during mid-day trading, a decline of 85% from the average daily volume of 2,191,505 shares. The stock had previously closed at $5.96.

A number of other research analysts also recently commented on the company. Morgan Stanley increased their target price on Frontier Group from $7.00 to $10.00 and gave the stock an “equal weight” rating in a report on Monday, February 24th. Barclays increased their target price on Frontier Group from $10.00 to $14.00 and gave the stock an “overweight” rating in a report on Monday, February 10th. Susquehanna increased their target price on Frontier Group from $6.00 to $8.00 and gave the stock a “neutral” rating in a report on Tuesday, January 7th. Citigroup reaffirmed a “neutral” rating and set a $7.25 target price on shares of Frontier Group in a report on Thursday. Finally, Deutsche Bank Aktiengesellschaft downgraded Frontier Group from a “buy” rating to a “hold” rating and reduced their target price for the stock from $12.00 to $8.00 in a report on Tuesday, March 4th. One investment analyst has rated the stock with a sell rating, nine have issued a hold rating and one has assigned a buy rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $7.58.

Insider Buying and Selling

In related news, CEO Barry Biffle sold 160,000 shares of Frontier Group stock in a transaction dated Monday, December 23rd. The shares were sold at an average price of $6.88, for a total transaction of $1,100,800.00. Following the sale, the chief executive officer now directly owns 784,817 shares in the company, valued at $5,399,540.96. The trade was a 16.93 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Alexandre Clerc sold 15,152 shares of the company’s stock in a transaction dated Friday, March 7th. The stock was sold at an average price of $6.63, for a total transaction of $100,457.76. Following the completion of the sale, the senior vice president now directly owns 23,912 shares of the company’s stock, valued at $158,536.56. The trade was a 38.79 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 860,982 shares of company stock valued at $6,912,597. Insiders own 81.50% of the company’s stock.

Institutional Trading of Frontier Group

A number of hedge funds and other institutional investors have recently made changes to their positions in ULCC. Victory Capital Management Inc. bought a new position in shares of Frontier Group in the third quarter valued at approximately $54,000. Intech Investment Management LLC acquired a new stake in Frontier Group in the third quarter worth approximately $72,000. Charles Schwab Investment Management Inc. boosted its stake in Frontier Group by 81.6% during the 3rd quarter. Charles Schwab Investment Management Inc. now owns 599,006 shares of the company’s stock valued at $3,205,000 after purchasing an additional 269,221 shares in the last quarter. Algert Global LLC increased its position in shares of Frontier Group by 80.2% during the 3rd quarter. Algert Global LLC now owns 451,508 shares of the company’s stock valued at $2,416,000 after purchasing an additional 200,885 shares during the period. Finally, Zurcher Kantonalbank Zurich Cantonalbank raised its stake in shares of Frontier Group by 251.0% in the 3rd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 11,896 shares of the company’s stock worth $64,000 after buying an additional 8,507 shares in the last quarter.

Frontier Group Stock Performance

The company has a fifty day moving average price of $7.84 and a two-hundred day moving average price of $6.57. The firm has a market cap of $1.27 billion, a price-to-earnings ratio of 15.51 and a beta of 2.37. The company has a debt-to-equity ratio of 0.45, a current ratio of 0.53 and a quick ratio of 0.48.

Frontier Group (NASDAQ:ULCC) last issued its quarterly earnings results on Friday, February 7th. The company reported $0.23 earnings per share for the quarter, beating analysts’ consensus estimates of $0.03 by $0.20. Frontier Group had a net margin of 2.25% and a return on equity of 9.83%. As a group, equities research analysts expect that Frontier Group Holdings, Inc. will post 0.91 EPS for the current year.

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.