Investors Buy Large Volume of Call Options on Frontline (NYSE:FRO)

Frontline PLC (NYSE:FRO) was the recipient of some unusual options trading activity on Tuesday. Traders purchased 9,799 call options on the stock. This is an increase of 46% compared to the typical daily volume of 6,696 call options.

Frontline Stock Up 2.3%

Shares of NYSE:FRO traded up $1.15 during midday trading on Tuesday, hitting $51.67. 3,657,186 shares of the stock were exchanged, compared to its average volume of 3,226,808. The business’s fifty day simple moving average is $41.29 and its two-hundred day simple moving average is $37.93. Frontline has a 52-week low of $20.47 and a 52-week high of $52.94. The company has a market capitalization of $11.50 billion, a PE ratio of 7.74 and a beta of 0.05. The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.87 and a current ratio of 1.87.

Frontline (NYSE:FRO) last posted its 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). Frontline had a return on equity of 44.24% and a net margin of 49.47%.The business had revenue of $943.30 million for the quarter, compared to analyst estimates of $758.89 million. During the same period in the previous year, the company earned $0.36 earnings per share. The company’s quarterly revenue was up 96.5% compared to the same quarter last year.

Frontline Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, September 28th. Shareholders of record on Friday, September 18th will be given a $2.61 dividend. The ex-dividend date is Friday, September 18th. This represents a $10.44 annualized dividend and a yield of 20.2%. This is a positive change from Frontline’s previous quarterly dividend of $1.55. Frontline’s dividend payout ratio (DPR) is 92.95%.

Analysts Set New Price Targets

FRO has been the subject of several research analyst reports. Wall Street Zen raised Frontline from a “buy” rating to a “strong-buy” rating in a report on Saturday, August 29th. DZ Bank cut Frontline from a “hold” rating to a “sell” rating in a report on Friday, August 21st. Danske lowered shares of Frontline from a “hold” rating to a “sell” rating in a research report on Friday, August 21st. Weiss Ratings raised Frontline from a “buy (b-)” rating to a “buy (b)” rating in a research note on Friday, August 28th. Finally, BTIG Research lifted their price objective on shares of Frontline from $45.00 to $55.00 and gave the stock a “buy” rating in a research note on Wednesday, June 24th. Four analysts have rated the stock with a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $41.62.

Institutional Trading of Frontline

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. WINTON GROUP Ltd raised its holdings in shares of Frontline by 72.0% in the 2nd quarter. WINTON GROUP Ltd now owns 12,900 shares of the shipping company’s stock worth $449,000 after buying an additional 5,400 shares in the last quarter. Integrated Wealth Concepts LLC grew its holdings in Frontline by 13.9% during the 2nd quarter. Integrated Wealth Concepts LLC now owns 22,969 shares of the shipping company’s stock worth $799,000 after acquiring an additional 2,810 shares during the last quarter. NewEdge Advisors LLC raised its position in Frontline by 3.7% in the 2nd quarter. NewEdge Advisors LLC now owns 27,115 shares of the shipping company’s stock worth $943,000 after purchasing an additional 957 shares during the last quarter. Amundi boosted its holdings in Frontline by 162.6% in the second quarter. Amundi now owns 847,488 shares of the shipping company’s stock valued at $29,809,000 after acquiring an additional 524,804 shares during the last quarter. Finally, Triumph Capital Management boosted its stake in shares of Frontline by 131.0% in the 2nd quarter. Triumph Capital Management now owns 8,931 shares of the shipping company’s stock valued at $311,000 after purchasing an additional 5,064 shares during the last quarter. Institutional investors own 22.70% of the company’s stock.

About Frontline

Frontline plc is a maritime shipping company that owns and operates tankers engaged primarily in the transportation of crude oil and refined petroleum products. Its fleet has included very large crude carriers (VLCCs), Suezmax tankers and long-range product tankers, which transport energy commodities for oil companies, trading firms and other customers worldwide.

The company’s vessels operate on international shipping routes, serving major oil-producing, refining and consuming regions.