Frontier Group (NASDAQ:ULCC) Trading Up 7.8% – Still a Buy?

Frontier Group Holdings, Inc. (NASDAQ:ULCC) was up 7.8% during trading on Monday . The stock traded as high as $5.00 and last traded at $5.00. Approximately 1,218,559 shares changed hands during trading, a decline of 62% from the average daily volume of 3,179,087 shares. The stock had previously closed at $4.64.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on ULCC shares. Bank of America reissued an “underperform” rating and issued a $4.00 price objective (down previously from $5.00) on shares of Frontier Group in a report on Tuesday, January 6th. UBS Group reissued a “neutral” rating and issued a $6.00 price objective (up previously from $4.00) on shares of Frontier Group in a research report on Friday, December 12th. Susquehanna upped their target price on shares of Frontier Group from $4.00 to $5.00 and gave the company a “neutral” rating in a report on Friday, January 9th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Frontier Group in a research note on Monday, December 29th. Finally, Morgan Stanley reduced their price target on Frontier Group from $9.00 to $8.00 and set an “equal weight” rating for the company in a report on Monday, December 8th. Two investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $6.38.

Frontier Group Stock Up 10.0%

The company has a current ratio of 0.40, a quick ratio of 0.36 and a debt-to-equity ratio of 0.79. The firm has a 50-day simple moving average of $5.05 and a two-hundred day simple moving average of $4.62. The stock has a market cap of $1.34 billion, a P/E ratio of -9.59 and a beta of 2.55.

Frontier Group (NASDAQ:ULCC) last announced its earnings results on Wednesday, November 5th. The company reported ($0.34) earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of ($0.34). The firm had revenue of $886.00 million for the quarter, compared to analyst estimates of $900.07 million. Frontier Group had a negative net margin of 3.65% and a negative return on equity of 25.73%. The business’s revenue was down 5.2% compared to the same quarter last year. During the same quarter in the prior year, the business posted ($0.05) EPS. Equities research analysts expect that Frontier Group Holdings, Inc. will post 0.91 earnings per share for the current fiscal year.

Insider Activity at Frontier Group

In other news, CEO Barry Biffle sold 82,627 shares of the business’s stock in a transaction on Thursday, December 11th. The stock was sold at an average price of $5.78, for a total transaction of $477,584.06. Following the completion of the transaction, the chief executive officer owned 631,836 shares of the company’s stock, valued at approximately $3,652,012.08. The trade was a 11.56% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Steve Schuller sold 5,000 shares of the firm’s stock in a transaction dated Wednesday, December 10th. The shares were sold at an average price of $6.00, for a total value of $30,000.00. Following the completion of the sale, the senior vice president directly owned 77,312 shares in the company, valued at $463,872. This trade represents a 6.07% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 305,000 shares of company stock worth $1,670,444 in the last quarter. 48.00% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Frontier Group

Several institutional investors and hedge funds have recently added to or reduced their stakes in ULCC. Caitong International Asset Management Co. Ltd acquired a new stake in Frontier Group in the third quarter valued at approximately $27,000. Ameritas Investment Partners Inc. boosted its holdings in shares of Frontier Group by 130.0% during the 2nd quarter. Ameritas Investment Partners Inc. now owns 8,643 shares of the company’s stock valued at $31,000 after acquiring an additional 4,885 shares in the last quarter. CWM LLC grew its position in Frontier Group by 165.0% during the 2nd quarter. CWM LLC now owns 10,042 shares of the company’s stock worth $36,000 after acquiring an additional 6,253 shares during the last quarter. MQS Management LLC acquired a new position in Frontier Group in the 2nd quarter worth about $37,000. Finally, May Hill Capital LLC bought a new position in Frontier Group in the second quarter valued at about $42,000.

About Frontier Group

Frontier Group, trading on Nasdaq under the ticker ULCC, is the holding company for Frontier Airlines, an ultra-low-cost carrier based in Denver, Colorado. The company’s core business centers on providing no-frills air travel across a point-to-point network while generating ancillary revenue from add-on services such as baggage fees, seat selection, priority boarding and in-flight refreshments. This fare-plus-a-la-carte model allows Frontier to offer competitive base fares and maintain low operating costs.

Founded in February 1994 by industry veterans Andrew Levy and Russell Beardsmore, Frontier Airlines commenced operations with a small fleet of MD-80 aircraft.