Frontline (NYSE:FRO) Stock Price Down 7.1% – Should You Sell?

Frontline PLC (NYSE:FRO)’s stock price traded down 7.1% on Monday. The company traded as low as $52.83 and last traded at $52.8790. 2,161,801 shares traded hands during mid-day trading, a decline of 36% from the average session volume of 3,398,201 shares. The stock had previously closed at $56.90.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on FRO shares. Danske lowered shares of Frontline from a “hold” rating to a “sell” rating in a report on Friday, August 21st. Nordea Equity Research lowered shares of Frontline to a “hold” rating in a report on Monday, August 31st. DZ Bank cut shares of Frontline from a “hold” rating to a “sell” rating in a research report on Friday, August 21st. Evercore set a $53.00 price target on shares of Frontline in a research note on Tuesday, October 27th. Finally, BTIG Research upped their price target on shares of Frontline from $55.00 to $70.00 and gave the company a “buy” rating in a research report on Friday, September 18th. Four equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of $48.12.

Frontline Trading Down 7.6%

The stock’s 50 day moving average is $50.65 and its 200-day moving average is $39.37. The company has a market cap of $10.79 billion, a P/E ratio of 7.27 and a beta of 0.19. The company has a current ratio of 1.87, a quick ratio of 1.87 and a debt-to-equity ratio of 0.69.

Frontline (NYSE:FRO) last issued its quarterly earnings data on Friday, August 28th. The shipping company reported $2.61 earnings per share for the quarter, missing analysts’ consensus estimates of $2.74 by ($0.13). Frontline had a net margin of 49.47% and a return on equity of 44.24%. The company had revenue of $943.30 million for the quarter, compared to the consensus estimate of $758.89 million. During the same quarter last year, the company earned $0.36 EPS. The firm’s revenue for the quarter was up 96.5% on a year-over-year basis.

Frontline Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, September 28th. Investors of record on Friday, September 18th were given a $2.61 dividend. This is an increase from Frontline’s previous quarterly dividend of $1.55. This represents a $10.44 dividend on an annualized basis and a dividend yield of 21.5%. The ex-dividend date was Friday, September 18th. Frontline’s dividend payout ratio (DPR) is presently 156.52%.

Institutional Trading of Frontline

Several institutional investors have recently added to or reduced their stakes in the company. Reyes Financial Architecture Inc. purchased a new position in Frontline during the third quarter valued at approximately $25,000. Fiduciary Financial Advisors acquired a new position in shares of Frontline in the second quarter worth about $28,000. Assetmark Inc. lifted its holdings in Frontline by 278.6% during the first quarter. Assetmark Inc. now owns 973 shares of the shipping company’s stock valued at $34,000 after purchasing an additional 716 shares in the last quarter. Parallel Advisors LLC lifted its holdings in Frontline by 58.9% during the first quarter. Parallel Advisors LLC now owns 1,311 shares of the shipping company’s stock valued at $46,000 after purchasing an additional 486 shares in the last quarter. Finally, Global Retirement Partners LLC acquired a new stake in shares of Frontline in the second quarter valued at about $48,000. Institutional investors own 22.70% of the company’s stock.

Frontline Company Profile

Frontline plc is a maritime shipping company that owns and operates tankers used to transport crude oil and refined petroleum products worldwide. The company’s fleet includes very large crude carriers (VLCCs), Suezmax tankers, and Aframax and Long Range 2 (LR2) vessels, serving international energy markets.

Frontline’s vessels are employed through a combination of voyage charters, time charters and pool arrangements. Its operations connect major oil-producing regions with refineries and consuming markets across the Atlantic, Pacific and other global trade routes.

Founded in 1985, Frontline is incorporated in Bermuda and has corporate operations based in Limassol, Cyprus.