Frontier Group Holdings, Inc. (NASDAQ:ULCC) Sees Large Decline in Short Interest

Frontier Group Holdings, Inc. (NASDAQ:ULCC) was the recipient of a significant drop in short interest during the month of December. As of December 15th, there was short interest totaling 22,349,960 shares, a drop of 22.7% from the November 30th total of 28,921,414 shares. Based on an average daily volume of 5,047,133 shares, the days-to-cover ratio is currently 4.4 days. Approximately 18.8% of the shares of the stock are sold short. Approximately 18.8% of the shares of the stock are sold short. Based on an average daily volume of 5,047,133 shares, the days-to-cover ratio is currently 4.4 days.

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on the company. Seaport Res Ptn raised Frontier Group to a “hold” rating in a research note on Thursday, September 25th. UBS Group reaffirmed a “neutral” rating and issued a $6.00 target price (up previously from $4.00) on shares of Frontier Group in a research report on Friday, December 12th. Deutsche Bank Aktiengesellschaft upgraded shares of 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 report on Tuesday, September 2nd. Weiss Ratings restated a “sell (d-)” rating on shares of Frontier Group in a report on Monday, December 22nd. Finally, Morgan Stanley lowered their price objective on shares of Frontier Group from $9.00 to $8.00 and set an “equal weight” rating for the company in a research report on Monday, December 8th. 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 has an average rating of “Hold” and an average target price of $6.25.

Frontier Group Stock Down 0.3%

NASDAQ:ULCC traded down $0.02 during midday trading on Tuesday, reaching $4.70. The company had a trading volume of 720,015 shares, compared to its average volume of 3,901,173. Frontier Group has a 12-month low of $2.89 and a 12-month high of $10.26. The firm has a market capitalization of $1.07 billion, a price-to-earnings ratio of -7.70 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. The stock’s fifty day simple moving average is $4.46 and its 200-day simple moving average is $4.40.

Frontier Group (NASDAQ:ULCC) last announced its quarterly earnings data 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 for the quarter, compared to the consensus estimate of $900.07 million. Frontier Group had a negative net margin of 3.65% and a negative return on equity of 25.73%. The company’s quarterly revenue was down 5.2% compared to the same quarter last year. During the same period in the prior year, the firm posted ($0.05) EPS. Frontier Group has set its Q4 2025 guidance at 0.040-0.200 EPS. On average, sell-side analysts anticipate that Frontier Group will post 0.91 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, SVP Steve Schuller sold 5,000 shares of the company’s stock in a transaction dated Wednesday, December 10th. The shares were sold at an average price of $6.00, for a total value of $30,000.00. Following the completion of the sale, the senior vice president owned 77,312 shares of the company’s stock, valued at approximately $463,872. This represents a 6.07% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CEO Barry Biffle sold 100,000 shares of Frontier Group stock in a transaction dated Monday, December 8th. The stock was sold at an average price of $5.54, for a total transaction of $554,000.00. Following the transaction, the chief executive officer directly owned 731,836 shares in the company, valued at $4,054,371.44. This trade represents a 12.02% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 305,000 shares of company stock worth $1,670,444. 48.00% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Frontier Group

Several hedge funds have recently made changes to their positions in ULCC. Voleon Capital Management LP boosted its holdings in Frontier Group by 9.4% in the 1st quarter. Voleon Capital Management LP now owns 38,692 shares of the company’s stock valued at $168,000 after purchasing an additional 3,335 shares in the last quarter. Ameritas Investment Partners Inc. lifted its holdings in shares of Frontier Group by 130.0% in the 2nd quarter. Ameritas Investment Partners Inc. now owns 8,643 shares of the company’s stock valued at $31,000 after buying an additional 4,885 shares during the period. AQR Capital Management LLC boosted its stake in shares of Frontier Group by 46.0% in the first quarter. AQR Capital Management LLC now owns 18,777 shares of the company’s stock valued at $81,000 after buying an additional 5,913 shares in the last quarter. Caitong International Asset Management Co. Ltd acquired a new position in Frontier Group during the third quarter worth $27,000. Finally, Victory Capital Management Inc. raised its position in Frontier Group by 9.5% in the third quarter. Victory Capital Management Inc. now owns 70,382 shares of the company’s stock worth $311,000 after acquiring an additional 6,108 shares in the last quarter.

About Frontier Group

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.