Frontier Group (NASDAQ:ULCC) Shares Gap Down – Here’s Why

Frontier Group Holdings, Inc. (NASDAQ:ULCC)’s share price gapped down prior to trading on Tuesday . The stock had previously closed at $4.84, but opened at $4.65. Frontier Group shares last traded at $4.7240, with a volume of 467,017 shares.

Analyst Upgrades and Downgrades

ULCC has been the subject of a number of analyst reports. UBS Group reaffirmed a “neutral” rating and set a $6.00 price objective (up previously from $4.00) on shares of Frontier Group in a research report on Friday, December 12th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Frontier Group in a report on Monday, December 29th. Morgan Stanley lowered their price objective on shares of Frontier Group from $9.00 to $8.00 and set an “equal weight” rating on the stock in a research report on Monday, December 8th. Susquehanna raised their price target on Frontier Group from $3.00 to $4.00 and gave the stock a “neutral” rating in a research note on Friday, October 3rd. Finally, Seaport Res Ptn upgraded Frontier Group to a “hold” rating in a research report on Thursday, September 25th. Two analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $6.25.

Frontier Group Stock Performance

The firm’s 50 day simple moving average is $4.51 and its 200 day simple moving average is $4.45. The firm has a market cap of $1.09 billion, a PE ratio of -7.83 and a beta of 2.55. The company has a current ratio of 0.40, a quick ratio of 0.36 and a debt-to-equity ratio of 0.79.

Frontier Group (NASDAQ:ULCC) last announced its quarterly earnings results on Wednesday, November 5th. The company reported ($0.34) EPS for the quarter, meeting analysts’ consensus estimates of ($0.34). The company had revenue of $886.00 million during the quarter, compared to analyst estimates of $900.07 million. Frontier Group had a negative return on equity of 25.73% and a negative net margin of 3.65%.The firm’s revenue was down 5.2% on a year-over-year basis. During the same period in the prior year, the company earned ($0.05) earnings per share. Frontier Group has set its Q4 2025 guidance at 0.040-0.200 EPS. On average, research analysts forecast that Frontier Group Holdings, Inc. will post 0.91 EPS for the current fiscal year.

Insider Activity

In other news, CEO Barry Biffle sold 82,627 shares of the firm’s stock in a transaction that occurred on Thursday, December 11th. The shares were sold at an average price of $5.78, for a total transaction of $477,584.06. Following the completion of the sale, the chief executive officer owned 631,836 shares in the company, valued at $3,652,012.08. This trade represents a 11.56% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, SVP Steve Schuller sold 5,000 shares of the stock in a transaction that occurred on Wednesday, December 10th. The stock was sold at an average price of $6.00, for a total value of $30,000.00. Following the completion of the transaction, the senior vice president owned 77,312 shares of the company’s stock, valued at $463,872. The trade was a 6.07% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 305,000 shares of company stock valued at $1,670,444. 48.00% of the stock is owned by corporate insiders.

Institutional Trading of Frontier Group

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. U S Global Investors Inc. lifted its position in shares of Frontier Group by 59.2% during the 2nd quarter. U S Global Investors Inc. now owns 6,204,862 shares of the company’s stock worth $22,524,000 after buying an additional 2,306,248 shares during the last quarter. Balyasny Asset Management L.P. purchased a new position in shares of Frontier Group during the 2nd quarter worth approximately $5,387,000. Jump Financial LLC acquired a new stake in shares of Frontier Group in the 2nd quarter valued at approximately $4,190,000. Bank of America Corp DE grew its holdings in Frontier Group by 39.2% during the third quarter. Bank of America Corp DE now owns 3,027,309 shares of the company’s stock worth $13,366,000 after acquiring an additional 852,798 shares during the period. Finally, Wolf Hill Capital Management LP purchased a new position in Frontier Group in the third quarter worth $2,519,000.

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.