Frontline (NYSE:FRO) Reaches New 12-Month High – Here’s What Happened

Frontline PLC (NYSE:FRO)’s stock price reached a new 52-week high during trading on Thursday. The stock traded as high as $55.64 and last traded at $55.5010, with a volume of 708651 shares traded. The stock had previously closed at $53.06.

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on FRO. Weiss Ratings raised Frontline from a “buy (b-)” rating to a “buy (b)” rating in a research report on Friday, August 28th. BTIG Research lifted their target price on Frontline from $55.00 to $70.00 and gave the company a “buy” rating in a report on Friday, September 18th. Danske cut Frontline from a “hold” rating to a “sell” rating in a research note on Friday, August 21st. Wall Street Zen upgraded Frontline from a “buy” rating to a “strong-buy” rating in a report on Saturday, August 29th. Finally, DZ Bank lowered Frontline from a “hold” rating to a “sell” rating in a research report on Friday, August 21st. Four research analysts have rated the stock with a Buy rating, five have given a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, Frontline currently has an average rating of “Hold” and an average price target of $45.37.

Frontline Price Performance

The firm has a market capitalization of $12.32 billion, a price-to-earnings ratio of 8.29 and a beta of 0.15. The stock’s fifty day moving average price is $45.62 and its two-hundred day moving average price is $39.86. The company has a current ratio of 1.87, a quick ratio of 1.87 and a debt-to-equity ratio of 0.69.

Frontline (NYSE:FRO) last issued its earnings results on Friday, August 28th. The shipping company reported $2.61 EPS for the quarter, missing analysts’ consensus estimates of $2.74 by ($0.13). The firm had revenue of $943.30 million for the quarter, compared to analyst estimates of $758.89 million. Frontline had a return on equity of 44.24% and a net margin of 49.47%.The business’s revenue for the quarter was up 96.5% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.36 EPS.

Frontline Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, September 28th. Stockholders of record on Friday, September 18th were given a dividend of $2.61 per share. The ex-dividend date of this dividend was Friday, September 18th. This represents a $10.44 annualized dividend and a dividend yield of 18.9%. This is an increase from Frontline’s previous quarterly dividend of $1.55. Frontline’s payout ratio is currently 156.52%.

Institutional Investors Weigh In On Frontline

Several hedge funds and other institutional investors have recently made changes to their positions in FRO. Amundi boosted its holdings in Frontline by 162.6% in the second quarter. Amundi now owns 847,488 shares of the shipping company’s stock valued at $29,809,000 after purchasing an additional 524,804 shares in the last quarter. BlackRock Inc. acquired a new stake in Frontline during the second quarter worth approximately $50,846,000. Bank of America Corp DE acquired a new stake in Frontline during the second quarter worth approximately $30,123,000. Empowered Funds LLC purchased a new stake in shares of Frontline during the 2nd quarter worth approximately $2,950,000. Finally, Energy Income Partners LLC purchased a new stake in shares of Frontline during the 2nd quarter worth approximately $1,202,000. Institutional investors and hedge funds own 22.70% of the company’s stock.

About Frontline

Frontline plc (NYSE: FRO) is a maritime transportation company that owns and operates a fleet of crude oil and refined petroleum product tankers. Its vessels transport energy commodities for oil companies, commodity traders, refineries and other customers in international markets.

The company’s fleet primarily includes very large crude carriers (VLCCs), Suezmax tankers and Aframax or LR2 tankers. Frontline generally employs its vessels through a combination of voyage charters, time charters and commercial pool arrangements, allowing it to serve major global shipping routes and connect oil-producing regions with refineries and consuming markets.

Frontline has roots in the Norwegian shipping industry and is associated with shipping entrepreneur John Fredriksen.