Investors Buy High Volume of Frontline Call Options (NYSE:FRO)

Frontline plc (NYSE:FRO) was the recipient of some unusual options trading on Tuesday. Investors acquired 4,374 call options on the stock. This is an increase of 70% compared to the typical volume of 2,580 call options.

Frontline Trading Up 11.6 %

Shares of NYSE:FRO opened at $15.93 on Wednesday. Frontline has a fifty-two week low of $13.17 and a fifty-two week high of $29.39. The company has a quick ratio of 1.43, a current ratio of 1.43 and a debt-to-equity ratio of 1.44. The company has a market cap of $3.55 billion, a PE ratio of 6.50 and a beta of 0.01. The company’s 50-day moving average price is $16.58 and its 200 day moving average price is $21.05.

Frontline (NYSE:FRO) last released its quarterly earnings results on Wednesday, November 27th. The shipping company reported $0.34 earnings per share for the quarter, missing analysts’ consensus estimates of $0.39 by ($0.05). Frontline had a net margin of 25.64% and a return on equity of 19.25%. During the same period in the prior year, the firm posted $0.36 EPS. Sell-side analysts anticipate that Frontline will post 1.83 earnings per share for the current year.

Frontline Cuts Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, December 31st. Shareholders of record on Wednesday, December 11th were given a dividend of $0.34 per share. The ex-dividend date of this dividend was Wednesday, December 11th. This represents a $1.36 dividend on an annualized basis and a yield of 8.54%. Frontline’s dividend payout ratio (DPR) is presently 55.51%.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of FRO. International Assets Investment Management LLC bought a new position in Frontline in the 3rd quarter valued at about $783,000. Charles Schwab Investment Management Inc. boosted its holdings in shares of Frontline by 102.6% in the third quarter. Charles Schwab Investment Management Inc. now owns 43,494 shares of the shipping company’s stock valued at $994,000 after acquiring an additional 22,022 shares in the last quarter. Edge Capital Group LLC increased its stake in shares of Frontline by 31.8% during the second quarter. Edge Capital Group LLC now owns 413,096 shares of the shipping company’s stock valued at $10,641,000 after acquiring an additional 99,765 shares during the period. FCG Investment Co bought a new stake in Frontline during the third quarter worth approximately $823,000. Finally, Public Employees Retirement System of Ohio acquired a new stake in Frontline in the third quarter worth approximately $998,000. 22.70% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several equities research analysts recently issued reports on the company. Kepler Capital Markets lowered Frontline from a “buy” rating to a “hold” rating and set a $15.83 price target on the stock. in a research report on Thursday, December 12th. Jefferies Financial Group decreased their price target on shares of Frontline from $26.00 to $20.00 and set a “buy” rating for the company in a report on Tuesday, December 17th. BTIG Research upgraded shares of Frontline from a “neutral” rating to a “buy” rating and set a $30.00 price objective on the stock in a research note on Monday, October 7th. Finally, Fearnley Fonds upgraded Frontline to a “strong-buy” rating in a research note on Friday, September 27th. One equities research analyst has rated the stock with a sell rating, two have issued a hold rating, four have assigned a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $24.36.

Frontline Company Profile

Frontline plc, a shipping company, engages in the seaborne transportation of crude oil and oil products worldwide. It owns and operates oil and product tankers. As of December 31, 2022, the company operated a fleet of 70 vessels. It is also involved in the charter, purchase, and sale of vessels. The company was founded in 1985 and is based in Limassol, Cyprus.