Frontline (NYSE:FRO) Sets New 1-Year High – What’s Next?

Frontline PLC (NYSE:FRO)’s stock price hit a new 52-week high during trading on Wednesday. The stock traded as high as $59.75 and last traded at $59.11, with a volume of 3,351,103 shares changing hands. The stock had previously closed at $59.19.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on the stock. Danske lowered shares of Frontline from a “hold” rating to a “sell” rating in a research report on Friday, August 21st. Wall Street Zen raised shares of Frontline from a “buy” rating to a “strong-buy” rating in a research note on Saturday, August 29th. DZ Bank lowered Frontline from a “hold” rating to a “sell” rating in a research report on Friday, August 21st. BTIG Research boosted their target price on Frontline from $55.00 to $70.00 and gave the company a “buy” rating in a research report on Friday, September 18th. Finally, Weiss Ratings raised Frontline from a “buy (b)” rating to a “buy (b+)” rating in a research note on Thursday, October 8th. Four research analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $45.37.

Frontline Price Performance

The stock’s 50 day moving average price is $47.09 and its 200-day moving average price is $40.54. The company has a quick ratio of 1.87, a current ratio of 1.87 and a debt-to-equity ratio of 0.69. The stock has a market capitalization of $13.16 billion, a PE ratio of 8.86 and a beta of 0.15.

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

Frontline Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, September 28th. Shareholders of record on Friday, September 18th were given a $2.61 dividend. This is a positive change from Frontline’s previous quarterly dividend of $1.55. The ex-dividend date of this dividend was Friday, September 18th. This represents a $10.44 annualized dividend and a yield of 17.7%. Frontline’s dividend payout ratio is presently 156.52%.

Hedge Funds Weigh In On Frontline

A number of hedge funds have recently added to or reduced their stakes in FRO. Signal Advisors Wealth LLC increased its position in shares of Frontline by 96.4% during the third quarter. Signal Advisors Wealth LLC now owns 16,115 shares of the shipping company’s stock worth $794,000 after acquiring an additional 7,908 shares during the period. Artemis Investment Management LLP raised its stake in shares of Frontline by 3.5% during the third quarter. Artemis Investment Management LLP now owns 774,952 shares of the shipping company’s stock valued at $38,182,000 after acquiring an additional 26,380 shares in the last quarter. WINTON GROUP Ltd raised its stake in shares of Frontline by 72.0% during the second quarter. WINTON GROUP Ltd now owns 12,900 shares of the shipping company’s stock valued at $449,000 after acquiring an additional 5,400 shares in the last quarter. Integrated Wealth Concepts LLC boosted its holdings in shares of Frontline by 13.9% in the second quarter. Integrated Wealth Concepts LLC now owns 22,969 shares of the shipping company’s stock valued at $799,000 after purchasing an additional 2,810 shares during the period. Finally, NewEdge Advisors LLC boosted its holdings in shares of Frontline by 3.7% in the second quarter. NewEdge Advisors LLC now owns 27,115 shares of the shipping company’s stock valued at $943,000 after purchasing an additional 957 shares during the period. 22.70% of the stock is currently owned by institutional investors.

Frontline Company Profile

Frontline plc (NYSE: FRO) is a maritime transportation company that owns and operates a fleet of crude oil and refined petroleum product tankers. Its vessels transport energy commodities for oil companies, commodity traders, refineries and other customers in international markets.

The company’s fleet primarily includes very large crude carriers (VLCCs), Suezmax tankers and Aframax or LR2 tankers. Frontline generally employs its vessels through a combination of voyage charters, time charters and commercial pool arrangements, allowing it to serve major global shipping routes and connect oil-producing regions with refineries and consuming markets.

Frontline has roots in the Norwegian shipping industry and is associated with shipping entrepreneur John Fredriksen.