Frontier Group (NASDAQ:ULCC) Shares Gap Up on Earnings Beat

Frontier Group Holdings, Inc. (NASDAQ:ULCC) shares gapped up prior to trading on Thursday following a stronger than expected earnings report. 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 for the quarter, beating the consensus estimate of ($0.18) by $0.09. The firm had revenue of $865.00 million during 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%. The firm’s quarterly revenue was up 2.0% on a year-over-year basis. During the same period in the previous year, the company posted ($0.06) earnings per share.

Analyst Upgrades and Downgrades

Several research firms have issued reports on ULCC. Evercore ISI lifted their target price on Frontier Group from $7.00 to $8.50 and gave the company an “in-line” rating in a research note on Thursday, April 4th. UBS Group began coverage on Frontier Group in a research note on Wednesday, March 20th. They issued a “neutral” rating and a $8.00 target price on the stock. Bank of America reiterated a “neutral” rating and issued a $6.00 target price (down previously from $8.00) on shares of Frontier Group in a research note on Tuesday, January 9th. Susquehanna lifted their target price on Frontier Group from $5.00 to $7.00 and gave the company a “neutral” rating in a research note on Friday, February 9th. Finally, Morgan Stanley reiterated an “equal weight” rating and issued a $8.00 target price (down previously from $10.00) on shares of Frontier Group in a research note on Monday, January 8th. Nine equities research analysts have rated the stock with a hold rating and two have issued a buy rating to the company. Based on data from MarketBeat.com, Frontier Group has an average rating of “Hold” and a consensus target price of $7.28.

Insider Transactions at Frontier Group

In other news, CEO Barry Biffle sold 151,620 shares of the business’s stock in a transaction dated Tuesday, March 5th. The stock was sold at an average price of $7.72, for a total transaction of $1,170,506.40. Following the sale, the chief executive officer now owns 772,981 shares in the company, valued at $5,967,413.32. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 81.50% of the company’s stock.

Institutional Investors Weigh In On Frontier Group

Large investors have recently bought and sold shares of the company. U S Global Investors Inc. boosted its position in Frontier Group by 46.0% in the fourth quarter. U S Global Investors Inc. now owns 10,483,645 shares of the company’s stock valued at $57,241,000 after buying an additional 3,305,465 shares during the last quarter. Vanguard Group Inc. boosted its position in Frontier Group by 20.0% in the third quarter. Vanguard Group Inc. now owns 3,821,012 shares of the company’s stock valued at $18,494,000 after buying an additional 636,921 shares during the last quarter. Jump Financial LLC acquired a new position in shares of Frontier Group in the 3rd quarter valued at about $1,867,000. Boston Partners boosted its stake in shares of Frontier Group by 65.5% in the third quarter. Boston Partners now owns 184,559 shares of the company’s stock worth $893,000 after buying an additional 73,024 shares during the last quarter. Finally, Connor Clark & Lunn Investment Management Ltd. grew its holdings in Frontier Group by 29.4% during the third quarter. Connor Clark & Lunn Investment Management Ltd. now owns 435,166 shares of the company’s stock worth $2,106,000 after acquiring an additional 98,852 shares during the period.

Frontier Group Price Performance

The firm has a 50-day moving average of $7.11 and a two-hundred day moving average of $5.71. The company has a current ratio of 0.53, a quick ratio of 0.48 and a debt-to-equity ratio of 0.50.

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.