Frontline (NYSE:FRO) Shares Down 6.5% – Time to Sell?

Frontline PLC (NYSE:FRO)’s share price traded down 6.5% during trading on Thursday. The company traded as low as $52.62 and last traded at $52.6030. Approximately 4,224,572 shares changed hands during trading, an increase of 25% from the average daily volume of 3,371,804 shares. The stock had previously closed at $56.27.

Analysts Set New Price Targets

Several equities analysts have recently issued reports on FRO shares. Weiss Ratings raised Frontline from a “buy (b)” rating to a “buy (b+)” rating in a report on Thursday, October 8th. Danske downgraded shares of Frontline from a “hold” rating to a “sell” rating in a report on Friday, August 21st. Nordea Equity Research downgraded Frontline to a “hold” rating in a research note on Monday, August 31st. DZ Bank lowered Frontline from a “hold” rating to a “sell” rating in a report on Friday, August 21st. Finally, BTIG Research lifted their target price on shares of Frontline from $55.00 to $70.00 and gave the stock a “buy” rating in a research note on Friday, September 18th. Four 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’s stock. According to MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $45.37.

Frontline Stock Down 0.2%

The company has a market capitalization of $11.68 billion, a PE ratio of 7.86 and a beta of 0.15. The firm has a 50-day moving average of $47.97 and a two-hundred day moving average of $40.91. The company has a quick ratio of 1.87, a current ratio of 1.87 and a debt-to-equity ratio of 0.69.

Frontline (NYSE:FRO) last announced 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). The company had revenue of $943.30 million for the quarter, compared to analysts’ expectations of $758.89 million. Frontline had a return on equity of 44.24% and a net margin of 49.47%. The company’s quarterly revenue was up 96.5% compared to the same quarter last year. During the same period last year, the business earned $0.36 EPS.

Frontline Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, September 28th. Investors of record on Friday, September 18th were issued a $2.61 dividend. The ex-dividend date was Friday, September 18th. This represents a $10.44 annualized dividend and a dividend yield of 19.9%. This is a boost from Frontline’s previous quarterly dividend of $1.55. Frontline’s dividend payout ratio (DPR) is presently 156.52%.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in FRO. Fiduciary Financial Advisors acquired a new position in shares of Frontline in the second quarter worth $28,000. Assetmark Inc. raised its stake in Frontline by 278.6% in 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 lifted its holdings in Frontline by 58.9% during the 1st quarter. Parallel Advisors LLC now owns 1,311 shares of the shipping company’s stock worth $46,000 after buying an additional 486 shares during the last quarter. Global Retirement Partners LLC purchased a new stake in Frontline during the second quarter worth approximately $48,000. Finally, Allworth Financial LP purchased a new stake in shares of Frontline during the 2nd quarter worth approximately $50,000. Institutional investors and hedge funds own 22.70% of the company’s stock.

Frontline Company Profile

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.