Frontline Target of Unusually High Options Trading (NYSE:FRO)

Frontline PLC (NYSE:FRO) saw some unusual options trading on Tuesday. Investors purchased 9,799 call options on the company. This is an increase of approximately 46% compared to the typical daily volume of 6,696 call options.

Frontline Stock Up 2.3%

Shares of Frontline stock traded up $1.15 during trading hours on Tuesday, hitting $51.67. The company had a trading volume of 3,657,186 shares, compared to its average volume of 3,226,808. The company’s 50-day moving average is $41.29 and its two-hundred day moving average is $37.93. The company has a market cap of $11.50 billion, a P/E ratio of 7.74 and a beta of 0.05. Frontline has a twelve month low of $20.47 and a twelve month high of $52.94. The company has a debt-to-equity ratio of 0.69, a current ratio of 1.87 and a quick ratio of 1.87.

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

Frontline Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 28th. Shareholders of record on Friday, September 18th will be issued a $2.61 dividend. This represents a $10.44 dividend on an annualized basis and a yield of 20.2%. This is an increase from Frontline’s previous quarterly dividend of $1.55. The ex-dividend date of this dividend is Friday, September 18th. Frontline’s dividend payout ratio is 92.95%.

Institutional Trading of Frontline

Several large investors have recently modified their holdings of the business. Fiduciary Financial Advisors purchased a new stake in Frontline in the 2nd quarter worth approximately $28,000. Assetmark Inc. lifted its position in Frontline by 278.6% during the first quarter. Assetmark Inc. now owns 973 shares of the shipping company’s stock valued at $34,000 after buying an additional 716 shares in the last quarter. Parallel Advisors LLC increased its holdings in Frontline by 58.9% in the 1st quarter. Parallel Advisors LLC now owns 1,311 shares of the shipping company’s stock valued at $46,000 after purchasing an additional 486 shares in the last quarter. Global Retirement Partners LLC purchased a new stake in shares of Frontline during the 2nd quarter valued at about $48,000. Finally, Allworth Financial LP purchased a new position in shares of Frontline in the second quarter valued at $50,000. 22.70% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of equities analysts recently commented on the company. DZ Bank cut Frontline from a “hold” rating to a “sell” rating in a report on Friday, August 21st. Danske lowered shares of Frontline from a “hold” rating to a “sell” rating in a report on Friday, August 21st. Wall Street Zen upgraded shares of Frontline from a “buy” rating to a “strong-buy” rating in a research note on Saturday, August 29th. BTIG Research increased their price objective on Frontline from $45.00 to $55.00 and gave the company a “buy” rating in a research note on Wednesday, June 24th. Finally, Nordea Equity Research cut Frontline to a “hold” rating in a research note on Monday, August 31st. Four analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, Frontline currently has a consensus rating of “Hold” and an average target price of $41.62.

Frontline Company Profile

Frontline plc is a maritime shipping company that owns and operates tankers engaged primarily in the transportation of crude oil and refined petroleum products. Its fleet has included very large crude carriers (VLCCs), Suezmax tankers and long-range product tankers, which transport energy commodities for oil companies, trading firms and other customers worldwide.

The company’s vessels operate on international shipping routes, serving major oil-producing, refining and consuming regions.