Frontier Group (NASDAQ:ULCC) Shares Gap Down – Should You Sell?

Frontier Group Holdings, Inc. (NASDAQ:ULCC)’s stock price gapped down prior to trading on Monday . The stock had previously closed at $4.44, but opened at $4.05. Frontier Group shares last traded at $4.0910, with a volume of 1,082,641 shares.

Analyst Ratings Changes

Several research analysts recently commented on the company. Bank of America reiterated an “underperform” rating and issued a $4.00 price target (down from $5.00) on shares of Frontier Group in a research report on Tuesday, January 6th. Susquehanna raised their price objective on Frontier Group from $4.00 to $5.00 and gave the company a “neutral” rating in a research note on Friday, January 9th. Morgan Stanley decreased 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. Deutsche Bank Aktiengesellschaft lowered shares of Frontier Group from a “buy” rating to a “hold” rating and set a $6.00 price objective for the company. in a research note on Tuesday, February 10th. Finally, Barclays restated an “underweight” rating and issued a $4.00 target price (down from $6.00) on shares of Frontier Group in a report on Monday. Six equities research analysts have rated the stock with a Hold rating and three have given a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Reduce” and an average target price of $5.38.

Frontier Group Stock Performance

The firm has a 50 day moving average of $5.10 and a 200-day moving average of $4.77. The company has a market cap of $926.48 million, a P/E ratio of -6.65, a PEG ratio of 0.78 and a beta of 2.54. The company has a quick ratio of 0.41, a current ratio of 0.46 and a debt-to-equity ratio of 0.73.

Frontier Group (NASDAQ:ULCC) last issued its earnings results on Wednesday, February 11th. The company reported $0.23 earnings per share for the quarter, topping the consensus estimate of $0.10 by $0.13. The business had revenue of $997.00 million during the quarter, compared to analysts’ expectations of $971.35 million. Frontier Group had a negative return on equity of 27.39% and a negative net margin of 3.68%.The business’s revenue for the quarter was down .5% compared to the same quarter last year. During the same period in the prior year, the business earned $0.23 EPS. 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. As a group, sell-side analysts anticipate that Frontier Group Holdings, Inc. will post 0.91 EPS for the current fiscal year.

Insider Activity

In other news, SVP Steve Schuller sold 5,000 shares of the business’s stock in a transaction dated 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 owned 94,926 shares in the company, valued at approximately $569,556. The trade was a 5.00% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Barry Biffle sold 100,000 shares of the stock in a transaction that occurred on Monday, December 8th. The shares were sold at an average price of $5.54, for a total transaction of $554,000.00. Following the transaction, the chief executive officer owned 731,836 shares in the company, valued at approximately $4,054,371.44. This represents a 12.02% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 310,000 shares of company stock worth $1,700,444. 48.00% of the stock is owned by company insiders.

Institutional Investors Weigh In On Frontier Group

A number of hedge funds have recently made changes to their positions in ULCC. Invesco Ltd. grew its stake in Frontier Group by 29.4% in the fourth quarter. Invesco Ltd. now owns 251,047 shares of the company’s stock valued at $1,182,000 after purchasing an additional 57,055 shares during the last quarter. Numerai GP LLC lifted its position in shares of Frontier Group by 530.6% during the fourth quarter. Numerai GP LLC now owns 86,544 shares of the company’s stock valued at $408,000 after buying an additional 72,819 shares during the last quarter. Caption Management LLC boosted its holdings in shares of Frontier Group by 19.8% in the 4th quarter. Caption Management LLC now owns 59,900 shares of the company’s stock valued at $282,000 after buying an additional 9,900 shares in the last quarter. Russell Investments Group Ltd. grew its position in shares of Frontier Group by 37.5% in the 4th quarter. Russell Investments Group Ltd. now owns 191,298 shares of the company’s stock worth $901,000 after buying an additional 52,146 shares during the last quarter. Finally, ExodusPoint Capital Management LP bought a new position in shares of Frontier Group during the 4th quarter worth approximately $592,000.

Frontier Group Company Profile

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.