Frontier Group (NASDAQ:ULCC) Shares Gap Up – Time to Buy?

Frontier Group Holdings, Inc. (NASDAQ:ULCC) gapped up before the market opened on Wednesday . The stock had previously closed at $5.11, but opened at $5.48. Frontier Group shares last traded at $5.5130, with a volume of 484,215 shares traded.

Wall Street Analysts Forecast Growth

ULCC has been the subject of several analyst reports. Citigroup assumed coverage on shares of Frontier Group in a research note on Thursday, December 4th. They issued a “neutral” rating and a $5.00 target price for the company. Susquehanna upped their price objective on shares of Frontier Group from $3.00 to $4.00 and gave the stock a “neutral” rating in a research report on Friday, October 3rd. UBS Group reissued a “neutral” rating and set a $6.00 target price (up from $4.00) on shares of Frontier Group in a research note on Friday. Deutsche Bank Aktiengesellschaft upgraded Frontier Group from a “hold” rating to a “buy” rating and lifted their price target for the company from $4.00 to $8.00 in a research note on Tuesday, September 2nd. Finally, Seaport Res Ptn upgraded Frontier Group to a “hold” rating in a research report on Thursday, September 25th. Two research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Frontier Group currently has an average rating of “Hold” and a consensus price target of $6.25.

Frontier Group Stock Up 2.8%

The firm has a market cap of $1.20 billion, a price-to-earnings ratio of -8.65 and a beta of 2.55. The business has a fifty day simple moving average of $4.34 and a 200 day simple moving average of $4.34. The company has a debt-to-equity ratio of 0.79, a current ratio of 0.40 and a quick ratio of 0.36.

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

Insiders Place Their Bets

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

Institutional Investors Weigh In On Frontier Group

A number of large investors have recently made changes to their positions in the stock. Deutsche Bank AG lifted its position in Frontier Group by 2,201.8% during the first quarter. Deutsche Bank AG now owns 585,888 shares of the company’s stock worth $2,543,000 after buying an additional 560,434 shares in the last quarter. Invesco Ltd. increased its position in Frontier Group by 15.8% during the first quarter. Invesco Ltd. now owns 80,550 shares of the company’s stock worth $350,000 after purchasing an additional 11,009 shares during the last quarter. Nuveen LLC purchased a new position in Frontier Group during the first quarter worth about $466,000. Russell Investments Group Ltd. boosted its holdings in Frontier Group by 37,186.3% in the 1st quarter. Russell Investments Group Ltd. now owns 202,092 shares of the company’s stock valued at $877,000 after purchasing an additional 201,550 shares during the last quarter. Finally, Boston Partners purchased a new stake in shares of Frontier Group in the 1st quarter valued at approximately $150,000.

About Frontier Group

Frontier Group Holdings, Inc, provides low-fare passenger airline services to leisure travelers in the United States and Latin America. The company sells its products through direct distribution channels, including its website, mobile app, and contact centers. As of December 31, 2023, it had a fleet of 136 Airbus single-aisle aircrafts.