Frontline (NYSE:FRO) Shares Down 3.6% – Here’s Why

Frontline PLC (NYSE:FRO)’s share price traded down 3.6% during mid-day trading on Wednesday . The company traded as low as $34.03 and last traded at $34.1740. 1,198,756 shares traded hands during mid-day trading, a decline of 70% from the average session volume of 4,031,582 shares. The stock had previously closed at $35.44.

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on the stock. Clarkson Capital upgraded shares of Frontline from a “neutral” rating to a “buy” rating in a report on Monday, January 12th. Dnb Carnegie lowered Frontline from a “strong-buy” rating to a “hold” rating in a research report on Monday, March 2nd. Weiss Ratings restated a “hold (c)” rating on shares of Frontline in a research report on Monday, December 29th. Evercore reaffirmed an “outperform” rating and issued a $42.00 price target on shares of Frontline in a research note on Friday, February 27th. Finally, Piper Sandler lowered Frontline to a “neutral” rating in a research report on Friday, February 27th. Four equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $38.00.

Frontline Stock Down 0.5%

The company has a quick ratio of 1.37, a current ratio of 1.43 and a debt-to-equity ratio of 1.09. The company’s fifty day moving average price is $31.58 and its 200-day moving average price is $26.22. The stock has a market capitalization of $7.47 billion and a PE ratio of 19.75.

Frontline (NYSE:FRO) last posted its quarterly earnings results on Friday, February 27th. The shipping company reported $1.03 earnings per share for the quarter, missing the consensus estimate of $1.13 by ($0.10). Frontline had a return on equity of 16.51% and a net margin of 19.31%.The company had revenue of $424.51 million during the quarter, compared to analysts’ expectations of $456.90 million. During the same quarter in the previous year, the company earned $0.20 EPS. The business’s quarterly revenue was up 46.7% on a year-over-year basis. Analysts forecast that Frontline PLC will post 1.78 earnings per share for the current year.

Frontline Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, March 19th. Stockholders of record on Thursday, March 12th were paid a $1.03 dividend. This is an increase from Frontline’s previous quarterly dividend of $0.19. This represents a $4.12 dividend on an annualized basis and a dividend yield of 12.3%. The ex-dividend date of this dividend was Thursday, March 12th. Frontline’s payout ratio is currently 242.35%.

Hedge Funds Weigh In On Frontline

Large investors have recently modified their holdings of the stock. University of Texas Texas AM Investment Management Co. purchased a new stake in Frontline during the 4th quarter valued at about $25,000. Sunbelt Securities Inc. bought a new position in shares of Frontline in the third quarter worth approximately $41,000. Sound Income Strategies LLC bought a new position in shares of Frontline in the fourth quarter worth approximately $53,000. CIBC Private Wealth Group LLC purchased a new stake in shares of Frontline during the third quarter valued at approximately $80,000. Finally, Triumph Capital Management bought a new stake in shares of Frontline during the third quarter valued at approximately $97,000. Hedge funds and other institutional investors own 22.70% of the company’s stock.

About Frontline

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.