Frontier Group (NASDAQ:ULCC) Trading Down 19.7% on Disappointing Earnings

Frontier Group Holdings, Inc. (NASDAQ:ULCC) shares fell 19.7% during trading on Tuesday following a weaker than expected earnings announcement. The stock traded as low as $5.68 and last traded at $5.84. 1,102,703 shares traded hands during mid-day trading, a decline of 47% from the average session volume of 2,076,930 shares. The stock had previously closed at $7.27.

The company reported ($0.05) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.02) by ($0.03). Frontier Group had a negative return on equity of 4.09% and a negative net margin of 1.77%. The firm had revenue of $935.00 million during the quarter, compared to the consensus estimate of $943.30 million. During the same quarter last year, the company posted ($0.14) EPS. Frontier Group’s revenue for the quarter was up 5.9% compared to the same quarter last year.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on the stock. Raymond James upgraded shares of Frontier Group from an “underperform” rating to a “market perform” rating in a report on Monday, September 30th. TD Cowen upped their price target on Frontier Group from $3.00 to $4.00 and gave the stock a “hold” rating in a research note on Monday, September 16th. Evercore ISI lifted their price objective on Frontier Group from $4.00 to $5.00 and gave the company an “in-line” rating in a research note on Thursday, October 3rd. Citigroup increased their target price on Frontier Group from $4.70 to $7.15 and gave the stock a “neutral” rating in a research note on Tuesday, October 22nd. Finally, Barclays reduced their price target on Frontier Group from $7.00 to $6.00 and set an “overweight” rating for the company in a report on Monday, August 12th. One investment analyst has rated the stock with a sell rating, nine have issued a hold rating and one has assigned a buy rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $6.02.

Insider Buying and Selling at Frontier Group

In other news, SVP Steve Schuller sold 10,000 shares of Frontier Group stock in a transaction that occurred on Friday, October 4th. The shares were sold at an average price of $6.00, for a total value of $60,000.00. Following the completion of the sale, the senior vice president now directly owns 34,035 shares in the company, valued at $204,210. The trade was a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Company insiders own 81.50% of the company’s stock.

Institutional Trading of Frontier Group

Several large investors have recently modified their holdings of ULCC. Blue Trust Inc. purchased a new position in Frontier Group in the second quarter worth about $45,000. nVerses Capital LLC boosted its holdings in shares of Frontier Group by 152.5% in the second quarter. nVerses Capital LLC now owns 10,100 shares of the company’s stock worth $50,000 after buying an additional 6,100 shares during the last quarter. Ballentine Partners LLC purchased a new position in shares of Frontier Group in the third quarter worth approximately $55,000. Vanguard Personalized Indexing Management LLC bought a new stake in Frontier Group during the second quarter valued at approximately $58,000. Finally, US Bancorp DE increased its holdings in Frontier Group by 930.3% during the third quarter. US Bancorp DE now owns 15,083 shares of the company’s stock valued at $81,000 after buying an additional 13,619 shares during the last quarter.

Frontier Group Stock Down 14.4 %

The company’s 50-day simple moving average is $4.94 and its two-hundred day simple moving average is $4.97. The firm has a market capitalization of $1.40 billion, a P/E ratio of -21.45 and a beta of 2.55. The company has a debt-to-equity ratio of 0.43, a current ratio of 0.52 and a quick ratio of 0.48.

Frontier Group Company Profile

Frontier Group Holdings, Inc, provides low-fare passenger airline services to leisure travelers in the United States and Latin America. The company sells its products through direct distribution channels, including its website, mobile app, and contact centers. As of December 31, 2023, it had a fleet of 136 Airbus single-aisle aircrafts.