Frontier Group (NASDAQ:ULCC) Shares Gap Up – Still a Buy?

Frontier Group Holdings, Inc. (NASDAQ:ULCC) gapped up before the market opened on Tuesday . The stock had previously closed at $3.24, but opened at $3.37. Frontier Group shares last traded at $3.3250, with a volume of 2,607,818 shares.

Analyst Ratings Changes

A number of research analysts have weighed in on ULCC shares. Citigroup assumed coverage on shares of Frontier Group in a research note on Thursday, December 4th. They issued a “neutral” rating and a $5.00 price target on the stock. Deutsche Bank Aktiengesellschaft lowered shares of Frontier Group from a “buy” rating to a “hold” rating and set a $6.00 price objective on the stock. in a report on Tuesday, February 10th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Frontier Group in a research note on Monday, December 29th. Morgan Stanley lowered their target price 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. Finally, Bank of America reissued an “underperform” rating and issued a $4.00 price target (down from $5.00) on shares of Frontier Group in a research note on Tuesday, January 6th. Six investment analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, Frontier Group currently has a consensus rating of “Reduce” and a consensus price target of $5.13.

Frontier Group Price Performance

The firm has a market cap of $768.05 million, a price-to-earnings ratio of -5.48, a PEG ratio of 0.59 and a beta of 2.54. The company’s fifty day moving average is $4.85 and its 200 day moving average is $4.70. The company has a quick ratio of 0.41, a current ratio of 0.46 and a debt-to-equity ratio of 0.73.

Frontier Group (NASDAQ:ULCC) last issued its quarterly earnings results on Wednesday, February 11th. The company reported $0.23 EPS for the quarter, topping the consensus estimate of $0.10 by $0.13. Frontier Group had a negative net margin of 3.68% and a negative return on equity of 27.39%. The firm had revenue of $997.00 million for the quarter, compared to analysts’ expectations of $971.35 million. During the same period in the previous year, the firm posted $0.23 EPS. The company’s revenue for the quarter was down .5% on a year-over-year basis. Frontier Group has set its FY 2026 guidance at -0.400-0.500 EPS and its Q1 2026 guidance at -0.440–0.260 EPS. On average, equities research analysts predict that Frontier Group Holdings, Inc. will post 0.91 EPS for the current year.

Insider Activity at Frontier Group

In other news, SVP Steve Schuller sold 5,000 shares of the stock in a transaction dated Friday, February 6th. The shares were sold at an average price of $6.00, for a total value of $30,000.00. Following the transaction, the senior vice president directly owned 94,926 shares of the company’s stock, valued at $569,556. This represents a 5.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 48.00% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in ULCC. Dimensional Fund Advisors LP increased its holdings in Frontier Group by 5.5% in the 3rd quarter. Dimensional Fund Advisors LP now owns 4,044,167 shares of the company’s stock valued at $17,860,000 after buying an additional 209,154 shares during the period. Bank of America Corp DE lifted its stake in shares of Frontier Group by 39.2% in the 3rd quarter. Bank of America Corp DE now owns 3,027,309 shares of the company’s stock valued at $13,366,000 after purchasing an additional 852,798 shares during the period. Citigroup Inc. lifted its position in shares of Frontier Group by 14.1% during the 3rd quarter. Citigroup Inc. now owns 2,824,859 shares of the company’s stock valued at $12,472,000 after acquiring an additional 348,739 shares during the period. Balyasny Asset Management L.P. boosted its holdings in Frontier Group by 48.4% in the third quarter. Balyasny Asset Management L.P. now owns 2,202,219 shares of the company’s stock worth $9,723,000 after acquiring an additional 718,147 shares in the last quarter. Finally, Geode Capital Management LLC increased its position in shares of Frontier Group by 0.4% during the fourth quarter. Geode Capital Management LLC now owns 2,196,472 shares of the company’s stock worth $10,347,000 after acquiring an additional 8,946 shares in the last quarter.

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.