Frontier Group (NASDAQ:ULCC) Stock Falls 6.1% – Here’s Why

Frontier Group Holdings, Inc. (NASDAQ:ULCC)’s share price was down 6.1% during trading on Tuesday. The company traded as low as $7.13 and last traded at $6.9750. Approximately 309,398 shares were traded during trading, a decline of 93% from the average session volume of 4,165,353 shares. The stock had previously closed at $7.43.

Analysts Set New Price Targets

Several analysts have recently commented on ULCC shares. Zacks Research downgraded shares of Frontier Group from a “strong-buy” rating to a “hold” rating in a report on Thursday, August 27th. Susquehanna boosted their target price on shares of Frontier Group from $6.00 to $6.50 and gave the company a “neutral” rating in a research report on Thursday, October 29th. UBS Group upped their price target on shares of Frontier Group from $6.00 to $7.00 and gave the company a “neutral” rating in a report on Friday. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Frontier Group in a research report on Wednesday, October 28th. Finally, Barclays reduced their price objective on Frontier Group from $7.00 to $5.00 and set an “underweight” rating for the company in a research note on Friday, September 11th. Six investment 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 stock presently has an average rating of “Reduce” and a consensus target price of $6.50.

Frontier Group Trading Down 9.1%

The company has a debt-to-equity ratio of 2.77, a current ratio of 0.58 and a quick ratio of 0.54. The firm has a market capitalization of $1.56 billion, a PE ratio of -3.80 and a beta of 2.64. The company’s fifty day simple moving average is $5.75 and its 200-day simple moving average is $5.44.

Frontier Group (NASDAQ:ULCC) last posted its quarterly earnings results on Wednesday, October 28th. The company reported $0.18 earnings per share for the quarter, topping the consensus estimate of ($0.06) by $0.24. Frontier Group had a negative net margin of 8.93% and a positive return on equity of 1.06%. The firm had revenue of $1.35 billion for the quarter, compared to the consensus estimate of $1.29 billion. During the same period last year, the firm posted ($0.34) earnings per share. The company’s revenue for the quarter was up 52.9% on a year-over-year basis. As a group, sell-side analysts expect that Frontier Group Holdings, Inc. will post -0.39 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Frontier Group news, SVP Steve Schuller sold 7,500 shares of the business’s stock in a transaction on Friday, September 4th. The stock was sold at an average price of $6.00, for a total transaction of $45,000.00. Following the transaction, the senior vice president owned 79,675 shares of the company’s stock, valued at approximately $478,050. The trade was a 8.60% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CFO Mark Mitchell sold 125,000 shares of the company’s stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $8.09, for a total value of $1,011,250.00. Following the completion of the sale, the chief financial officer owned 53,785 shares of the company’s stock, valued at approximately $435,120.65. The trade was a 69.92% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 135,980 shares of company stock valued at $1,076,121 over the last 90 days. Company insiders own 48.00% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of ULCC. BlackRock Inc. purchased a new position in Frontier Group during the second quarter worth about $47,205,000. U S Global Investors Inc. boosted its holdings in Frontier Group by 6.1% in the 3rd quarter. U S Global Investors Inc. now owns 5,216,198 shares of the company’s stock valued at $31,141,000 after purchasing an additional 301,543 shares during the last quarter. Silver Point Capital L.P. purchased a new stake in shares of Frontier Group in the 2nd quarter valued at approximately $12,141,850. Bank of America Corp DE acquired a new position in shares of Frontier Group in the 2nd quarter worth approximately $7,337,000. Finally, GSA Capital Partners LLP purchased a new stake in Frontier Group in the second quarter valued at approximately $4,373,000.

About Frontier Group

Frontier Group Holdings, Inc is the parent company of Frontier Airlines, an ultra-low-cost passenger airline headquartered in Denver, Colorado. The company operates a low-fare, point-to-point air transportation business, primarily serving leisure travelers and price-conscious customers.

Frontier Airlines offers scheduled flights to destinations across the United States, as well as selected locations in the Caribbean and Latin America. Its business model emphasizes low base fares with additional charges for optional services such as checked baggage, seat selection, priority boarding and other travel-related products.

Frontier Airlines traces its roots to 1994 and has expanded its network through a fleet focused largely on Airbus narrow-body aircraft.