Frontline (NYSE:FRO) Sets New 1-Year High – Here’s Why

Frontline PLC (NYSE:FRO) hit a new 52-week high on Wednesday . The company traded as high as $29.69 and last traded at $30.1840, with a volume of 28238 shares. The stock had previously closed at $29.05.

Analysts Set New Price Targets

Several research firms have commented on FRO. Clarkson Capital upgraded Frontline from a “neutral” rating to a “buy” rating in a research note on Monday, January 12th. Weiss Ratings restated a “hold (c)” rating on shares of Frontline in a report on Monday, December 29th. Evercore lifted their target price on Frontline from $22.00 to $26.00 and gave the company an “outperform” rating in a research report on Tuesday, October 28th. Jefferies Financial Group increased their price target on Frontline from $28.00 to $30.00 and gave the company a “buy” rating in a research report on Friday, November 21st. Finally, BTIG Research increased their price objective on Frontline from $30.00 to $35.00 and gave the company a “buy” rating in a report on Wednesday, February 4th. Four research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $25.87.

Frontline Price Performance

The business’s fifty day moving average price is $24.82 and its 200 day moving average price is $23.24. The company has a debt-to-equity ratio of 1.27, a current ratio of 1.37 and a quick ratio of 1.37. The stock has a market cap of $6.62 billion, a P/E ratio of 30.33 and a beta of 0.07.

Frontline (NYSE:FRO) last released its quarterly earnings data on Friday, November 21st. The shipping company reported $0.19 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.23 by ($0.04). The company had revenue of $257.04 million for the quarter, compared to analyst estimates of $265.23 million. Frontline had a return on equity of 8.89% and a net margin of 12.23%.During the same quarter in the prior year, the company earned $0.34 earnings per share. Sell-side analysts forecast that Frontline PLC will post 1.78 EPS for the current fiscal year.

Frontline Cuts Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, December 19th. Stockholders of record on Friday, December 12th were paid a dividend of $0.19 per share. This represents a $0.76 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date of this dividend was Friday, December 12th. Frontline’s dividend payout ratio (DPR) is presently 77.55%.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in FRO. Wells Fargo & Company MN boosted its position in Frontline by 36.3% during the 4th quarter. Wells Fargo & Company MN now owns 15,016 shares of the shipping company’s stock worth $328,000 after buying an additional 3,999 shares during the period. Counterpoint Mutual Funds LLC bought a new stake in shares of Frontline in the fourth quarter worth $508,000. Skandinaviska Enskilda Banken AB publ increased its holdings in Frontline by 882.4% in the fourth quarter. Skandinaviska Enskilda Banken AB publ now owns 583,166 shares of the shipping company’s stock valued at $12,725,000 after purchasing an additional 523,806 shares during the period. Campbell & CO Investment Adviser LLC acquired a new position in Frontline during the 4th quarter worth about $1,940,000. Finally, Bank of Montreal Can increased its stake in shares of Frontline by 0.6% in the fourth quarter. Bank of Montreal Can now owns 73,544 shares of the shipping company’s stock valued at $1,605,000 after buying an additional 460 shares during the period. Institutional investors own 22.70% of the company’s stock.

Frontline Company Profile

Frontline Ltd. (NYSE:FRO) is a leading global shipping company specializing in the seaborne transportation of crude oil and petroleum products. The company’s core business activities encompass the ownership and operation of very large crude carriers (VLCCs), Suezmax tankers and Aframax vessels. Through long-term charters, spot market operations and time charters, Frontline provides flexible shipping solutions that cater to a diverse set of energy producers, refiners and trading houses worldwide.

Frontline’s fleet is geared toward high-capacity, ocean-going tankers capable of carrying large volumes of crude oil over intercontinental distances.