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

Frontier Group Holdings, Inc. (NASDAQ:ULCC)’s share price gapped up prior to trading on Wednesday . The stock had previously closed at $5.11, but opened at $5.48. Frontier Group shares last traded at $5.5130, with a volume of 484,215 shares changing hands.

Wall Street Analyst Weigh In

Several analysts have recently weighed in on ULCC shares. Susquehanna lifted their price objective on Frontier Group from $3.00 to $4.00 and gave the stock a “neutral” rating in a report on Friday, October 3rd. Deutsche Bank Aktiengesellschaft raised Frontier Group from a “hold” rating to a “buy” rating and raised their target price for the stock from $4.00 to $8.00 in a research report on Tuesday, September 2nd. Citigroup began coverage on shares of Frontier Group in a research note on Thursday, December 4th. They set a “neutral” rating and a $5.00 price target on the stock. Morgan Stanley lowered their price target on shares of Frontier Group from $9.00 to $8.00 and set an “equal weight” rating on the stock in a report on Monday, December 8th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Frontier Group in a report on Monday. Two research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Hold” and an average target price of $6.25.

Frontier Group Trading Down 2.2%

The company has a 50 day moving average of $4.37 and a 200 day moving average of $4.35. The company has a current ratio of 0.40, a quick ratio of 0.36 and a debt-to-equity ratio of 0.79. The firm has a market cap of $1.14 billion, a price-to-earnings ratio of -8.16 and a beta of 2.55.

Frontier Group (NASDAQ:ULCC) last released its quarterly earnings data on Wednesday, November 5th. The company reported ($0.34) earnings per share (EPS) for the quarter, hitting the consensus estimate of ($0.34). The firm had revenue of $886.00 million during the quarter, compared to analyst estimates of $900.07 million. Frontier Group had a negative return on equity of 25.73% and a negative net margin of 3.65%.The business’s revenue for the quarter was down 5.2% compared to the same quarter last year. During the same period in the prior year, the company posted ($0.05) earnings per share. Frontier Group has set its Q4 2025 guidance at 0.040-0.200 EPS. As a group, research analysts anticipate that Frontier Group Holdings, Inc. will post 0.91 EPS for the current year.

Insider Activity

In other Frontier Group news, CEO Barry Biffle sold 100,000 shares of the business’s stock in a transaction dated Monday, December 8th. The shares were sold at an average price of $5.54, for a total value of $554,000.00. Following the transaction, the chief executive officer directly owned 731,836 shares in the company, valued at $4,054,371.44. The trade was a 12.02% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, SVP Steve Schuller sold 5,000 shares of the firm’s stock in a transaction that occurred on Wednesday, December 10th. The stock was sold at an average price of $6.00, for a total transaction of $30,000.00. Following the sale, the senior vice president directly owned 77,312 shares of the company’s stock, valued at approximately $463,872. The trade was a 6.07% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 305,000 shares of company stock valued at $1,670,444 over the last three months. 48.00% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in ULCC. U S Global Investors Inc. lifted its position in shares of Frontier Group by 59.2% during the second quarter. U S Global Investors Inc. now owns 6,204,862 shares of the company’s stock worth $22,524,000 after purchasing an additional 2,306,248 shares in the last quarter. Balyasny Asset Management L.P. acquired a new stake in shares of Frontier Group in the 2nd quarter valued at $5,387,000. Jump Financial LLC bought a new stake in shares of Frontier Group during the second quarter worth $4,190,000. Silver Point Capital L.P. acquired a new position in shares of Frontier Group during the first quarter valued at $3,906,000. Finally, Bank of America Corp DE boosted its holdings in Frontier Group by 39.2% in the third quarter. Bank of America Corp DE now owns 3,027,309 shares of the company’s stock valued at $13,366,000 after acquiring an additional 852,798 shares during the last quarter.

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.