Frontline (NYSE:FRO) Shares Down 4.5% on Disappointing Earnings

Frontline PLC (NYSE:FRO) traded down 4.5% during trading on Monday following a dissappointing earnings announcement. The stock traded as low as $24.45 and last traded at $24.73. 1,008,397 shares were traded during mid-day trading, a decline of 65% from the average session volume of 2,868,306 shares. The stock had previously closed at $25.90.

The shipping company reported $0.19 earnings per share for the quarter, missing the consensus estimate of $0.23 by ($0.04). Frontline had a net margin of 12.94% and a return on equity of 10.27%. The company had revenue of $257.04 million during the quarter, compared to the consensus estimate of $265.23 million. During the same quarter in the previous year, the firm posted $0.34 EPS.

Frontline Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, December 19th. Shareholders of record on Friday, December 12th will be given a dividend of $0.19 per share. The ex-dividend date of this dividend is Friday, December 12th. This represents a $0.76 annualized dividend and a yield of 3.1%. Frontline’s dividend payout ratio is presently 77.55%.

Analyst Ratings Changes

A number of equities research analysts have issued reports on FRO shares. Wall Street Zen raised shares of Frontline from a “sell” rating to a “hold” rating in a report on Friday, September 26th. Evercore ISI raised their target price on Frontline from $22.00 to $26.00 and gave the stock an “outperform” rating in a research note on Tuesday, October 28th. Weiss Ratings restated a “buy (b-)” rating on shares of Frontline in a report on Monday, November 17th. Jefferies Financial Group increased their price objective on Frontline from $28.00 to $30.00 and gave the stock a “buy” rating in a report on Friday. Finally, BTIG Research lifted their price objective on Frontline from $25.00 to $30.00 and gave the stock a “buy” rating in a research report on Wednesday, September 17th. Four investment analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $24.62.

Institutional Trading of Frontline

Large investors have recently bought and sold shares of the company. Envestnet Asset Management Inc. raised its position in shares of Frontline by 21.0% in the 1st quarter. Envestnet Asset Management Inc. now owns 36,502 shares of the shipping company’s stock worth $542,000 after acquiring an additional 6,334 shares in the last quarter. Private Advisor Group LLC grew its stake in Frontline by 10.4% in the first quarter. Private Advisor Group LLC now owns 30,968 shares of the shipping company’s stock worth $460,000 after purchasing an additional 2,915 shares during the period. TD Asset Management Inc raised its holdings in Frontline by 47.4% in the first quarter. TD Asset Management Inc now owns 15,544 shares of the shipping company’s stock worth $227,000 after purchasing an additional 4,997 shares in the last quarter. Mackenzie Financial Corp purchased a new position in Frontline during the first quarter valued at $229,000. Finally, Bayforest Capital Ltd bought a new stake in shares of Frontline during the 1st quarter valued at $34,000. 22.70% of the stock is owned by institutional investors.

Frontline Stock Down 5.7%

The company has a debt-to-equity ratio of 1.38, a quick ratio of 1.88 and a current ratio of 1.88. The stock’s 50-day moving average price is $23.72 and its two-hundred day moving average price is $20.61. The stock has a market capitalization of $5.44 billion, a PE ratio of 22.80 and a beta of 0.14.

About Frontline

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.