Frontier Group Sees Unusually High Options Volume (NASDAQ:ULCC)

Frontier Group Holdings, Inc. (NASDAQ:ULCC) was the target of some unusual options trading activity on Wednesday. Stock traders bought 5,982 call options on the stock. This is an increase of 254% compared to the average volume of 1,691 call options.

Frontier Group Stock Up 3.0%

Shares of NASDAQ ULCC traded up $0.16 during mid-day trading on Wednesday, reaching $5.27. 2,053,114 shares of the company’s stock were exchanged, compared to its average volume of 3,925,466. Frontier Group has a twelve month low of $2.89 and a twelve month high of $10.26. The company has a current ratio of 0.40, a quick ratio of 0.36 and a debt-to-equity ratio of 0.79. The firm has a market capitalization of $1.21 billion, a price-to-earnings ratio of -8.66 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.

Frontier Group (NASDAQ:ULCC) last posted its 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 business had revenue of $886.00 million during the quarter, compared to analysts’ expectations of $900.07 million. During the same period in the prior year, the business earned ($0.05) EPS. Frontier Group’s revenue for the quarter was down 5.2% compared to the same quarter last year. Frontier Group has set its Q4 2025 guidance at 0.040-0.200 EPS. As a group, equities analysts expect that Frontier Group will post 0.91 EPS for the current fiscal year.

Insider Activity at Frontier Group

In related news, CEO Barry Biffle sold 82,627 shares of the business’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 value of $477,584.06. Following the completion of the transaction, the chief executive officer owned 631,836 shares in the company, valued at $3,652,012.08. The trade was a 11.56% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, SVP Steve Schuller sold 5,000 shares of the business’s stock in a transaction 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 sale, the senior vice president owned 77,312 shares of the company’s stock, valued at approximately $463,872. The trade was a 6.07% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 305,000 shares of company stock worth $1,670,444 over the last three months. 48.00% of the stock is owned by insiders.

Institutional Investors Weigh In On Frontier Group

Several institutional investors have recently added to or reduced their stakes in ULCC. U S Global Investors Inc. boosted its stake in Frontier Group by 59.2% in the 2nd quarter. U S Global Investors Inc. now owns 6,204,862 shares of the company’s stock worth $22,524,000 after purchasing an additional 2,306,248 shares during the period. Balyasny Asset Management L.P. bought a new position in Frontier Group in the second quarter valued at $5,387,000. Jump Financial LLC acquired a new stake in Frontier Group in the 2nd quarter valued at $4,190,000. Silver Point Capital L.P. acquired a new position in shares of Frontier Group during the 1st quarter worth about $3,906,000. Finally, Bank of America Corp DE grew its holdings in shares of Frontier Group by 39.2% in 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 acquiring an additional 852,798 shares in the last quarter.

Analyst Ratings Changes

Several research analysts have recently issued reports on ULCC shares. Deutsche Bank Aktiengesellschaft raised shares of Frontier Group from a “hold” rating to a “buy” rating and raised their target price for the company from $4.00 to $8.00 in a research note on Tuesday, September 2nd. Citigroup initiated coverage on shares of Frontier Group in a report on Thursday, December 4th. They set a “neutral” rating and a $5.00 target price for the company. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Frontier Group in a research note on Monday. 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. Finally, Seaport Res Ptn upgraded shares of Frontier Group to a “hold” rating in a report on Thursday, September 25th. Two equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Frontier Group currently has a consensus rating of “Hold” and an average price target of $6.25.

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.