Frontier Group (NASDAQ:ULCC) Shares Gap Up – Should You Buy?

Frontier Group Holdings, Inc. (NASDAQ:ULCC)’s share price gapped up before the market opened on Tuesday . The stock had previously closed at $3.24, but opened at $3.37. Frontier Group shares last traded at $3.3250, with a volume of 2,607,818 shares changing hands.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on ULCC shares. Morgan Stanley lowered their price target on Frontier Group from $9.00 to $8.00 and set an “equal weight” rating on the stock in a report on Monday, December 8th. Bank of America reiterated an “underperform” rating and issued a $4.00 target price (down from $5.00) on shares of Frontier Group in a research report on Tuesday, January 6th. Susquehanna raised their target price on shares of Frontier Group from $4.00 to $5.00 and gave the company a “neutral” rating in a research note on Friday, January 9th. Citigroup initiated coverage on shares of Frontier Group in a research report on Thursday, December 4th. They set a “neutral” rating and a $5.00 price target on the stock. Finally, Deutsche Bank Aktiengesellschaft lowered shares of Frontier Group from a “buy” rating to a “hold” rating and set a $6.00 price target for the company. in a research note on Tuesday, February 10th. Six research analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Reduce” and a consensus price target of $5.13.

Frontier Group Stock Down 1.1%

The firm has a market cap of $703.98 million, a PE ratio of -5.01, a P/E/G ratio of 16.67 and a beta of 2.55. The company has a debt-to-equity ratio of 0.73, a current ratio of 0.46 and a quick ratio of 0.41. The business has a fifty day moving average price of $4.79 and a two-hundred day moving average price of $4.68.

Frontier Group (NASDAQ:ULCC) last released its earnings results on Wednesday, February 11th. The company reported $0.23 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.10 by $0.13. Frontier Group had a negative net margin of 3.68% and a negative return on equity of 27.39%. The company had revenue of $997.00 million during the quarter, compared to the consensus estimate of $971.35 million. During the same quarter in the prior year, the firm earned $0.23 EPS. The company’s revenue was down .5% compared to the same quarter last year. Frontier Group has set its FY 2026 guidance at -0.400-0.500 EPS and its Q1 2026 guidance at -0.440–0.260 EPS. On average, analysts anticipate that Frontier Group Holdings, Inc. will post 0.91 EPS for the current fiscal year.

Insider Activity

In related news, SVP Steve Schuller sold 5,000 shares of the company’s stock in a transaction on Friday, February 6th. The shares were sold at an average price of $6.00, for a total value of $30,000.00. Following the completion of the sale, the senior vice president directly owned 94,926 shares in the company, valued at approximately $569,556. This represents a 5.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Insiders own 48.00% of the company’s stock.

Institutional Trading of Frontier Group

A number of institutional investors and hedge funds have recently made changes to their positions in ULCC. Caitong International Asset Management Co. Ltd acquired a new position in shares of Frontier Group during the third quarter worth approximately $27,000. Quarry LP bought a new stake in Frontier Group in the 4th quarter valued at $34,000. Ameritas Investment Partners Inc. lifted its holdings in shares of Frontier Group by 130.0% during the 2nd quarter. Ameritas Investment Partners Inc. now owns 8,643 shares of the company’s stock worth $31,000 after acquiring an additional 4,885 shares during the period. Brooklyn Investment Group increased its stake in Frontier Group by 490.7% in the third quarter. Brooklyn Investment Group now owns 10,928 shares of the company’s stock valued at $48,000 after acquiring an additional 9,078 shares during the period. Finally, Wealth Enhancement Advisory Services LLC bought a new stake in Frontier Group in the third quarter valued at about $49,000.

About Frontier Group

Frontier Group, trading on Nasdaq under the ticker ULCC, is the holding company for Frontier Airlines, an ultra-low-cost carrier based in Denver, Colorado. The company’s core business centers on providing no-frills air travel across a point-to-point network while generating ancillary revenue from add-on services such as baggage fees, seat selection, priority boarding and in-flight refreshments. This fare-plus-a-la-carte model allows Frontier to offer competitive base fares and maintain low operating costs.

Founded in February 1994 by industry veterans Andrew Levy and Russell Beardsmore, Frontier Airlines commenced operations with a small fleet of MD-80 aircraft.