Frontier Group (NASDAQ:ULCC) Trading 8.4% Higher – Should You Buy?

Frontier Group Holdings, Inc. (NASDAQ:ULCC) was up 8.4% during mid-day trading on Tuesday . The company traded as high as $4.13 and last traded at $4.1950. Approximately 928,940 shares were traded during trading, a decline of 76% from the average daily volume of 3,836,774 shares. The stock had previously closed at $3.87.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on ULCC shares. UBS Group increased their target price on Frontier Group from $3.50 to $5.00 and gave the company a “neutral” rating in a research note on Friday, September 26th. Susquehanna increased their price target on shares of Frontier Group from $3.00 to $4.00 and gave the company a “neutral” rating in a research report on Friday, October 3rd. Weiss Ratings reissued a “sell (d-)” rating on shares of Frontier Group in a research note on Wednesday, November 19th. Seaport Res Ptn upgraded shares of Frontier Group to a “hold” rating in a research report on Thursday, September 25th. Finally, Deutsche Bank Aktiengesellschaft upgraded shares of Frontier Group from a “hold” rating to a “buy” rating and upped their price target for the company from $4.00 to $8.00 in a research report on Tuesday, September 2nd. Two investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, Frontier Group presently has an average rating of “Hold” and an average price target of $6.13.

Frontier Group Stock Up 8.7%

The stock has a market capitalization of $962.73 million, a P/E ratio of -6.89 and a beta of 2.57. The stock has a 50 day moving average price of $4.28 and a 200-day moving average price of $4.22. 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 posted its quarterly earnings results on Wednesday, November 5th. The company reported ($0.34) earnings per share (EPS) for the quarter, hitting the consensus estimate of ($0.34). The business had revenue of $886.00 million for 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%.Frontier Group’s revenue for the quarter was down 5.2% compared to the same quarter last year. During the same period last year, the company earned ($0.05) EPS. Frontier Group has set its Q4 2025 guidance at 0.040-0.200 EPS. As a group, research analysts expect that Frontier Group Holdings, Inc. will post 0.91 EPS for the current fiscal year.

Institutional Investors Weigh In On Frontier Group

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. U S Global Investors Inc. boosted its position in 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 valued at $22,524,000 after buying an additional 2,306,248 shares during the period. Balyasny Asset Management L.P. bought a new position in shares of Frontier Group during the second quarter valued at about $5,387,000. Jump Financial LLC purchased a new stake in shares of Frontier Group during the second quarter worth about $4,190,000. Silver Point Capital L.P. bought a new stake in shares of Frontier Group in the first quarter worth about $3,906,000. Finally, Bank of America Corp DE increased its holdings in Frontier Group by 39.2% during the 3rd quarter. Bank of America Corp DE now owns 3,027,309 shares of the company’s stock valued at $13,366,000 after purchasing an additional 852,798 shares during the period.

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.