Frontier Group (NASDAQ:ULCC) Upgraded by Zacks Research to Strong-Buy Rating

Frontier Group (NASDAQ:ULCC) was upgraded by analysts at Zacks Research from a “hold” rating to a “strong-buy” rating in a research note issued to investors on Wednesday,Zacks.com reports.

Several other equities analysts have also recently issued reports on ULCC. Susquehanna boosted their target price on Frontier Group from $4.50 to $7.00 and gave the company a “neutral” rating in a research note on Tuesday, July 7th. UBS Group raised their price target on Frontier Group from $4.00 to $7.00 and gave the stock a “neutral” rating in a research note on Tuesday, June 23rd. Wall Street Zen upgraded shares of Frontier Group from a “sell” rating to a “hold” rating in a report on Sunday, June 21st. Weiss Ratings reissued a “sell (d)” rating on shares of Frontier Group in a research report on Tuesday, May 19th. Finally, Barclays upped their price objective on shares of Frontier Group from $4.00 to $7.00 and gave the stock an “underweight” rating in a report on Thursday, June 25th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Reduce” and an average price target of $6.86.

Frontier Group Stock Performance

Frontier Group stock opened at $6.98 on Wednesday. The company has a current ratio of 0.49, a quick ratio of 0.44 and a debt-to-equity ratio of 1.75. The firm has a market cap of $1.60 billion, a P/E ratio of -4.15 and a beta of 2.56. Frontier Group has a 1-year low of $3.02 and a 1-year high of $8.40. The firm has a 50-day moving average of $6.54 and a 200-day moving average of $5.18.

Frontier Group (NASDAQ:ULCC) last announced its quarterly earnings results on Wednesday, July 29th. The company reported ($0.10) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.47) by $0.37. The company had revenue of $1.28 billion for the quarter, compared to the consensus estimate of $1.22 billion. Frontier Group had a negative return on equity of 29.82% and a negative net margin of 9.29%.Frontier Group’s revenue was up 37.7% compared to the same quarter last year. During the same quarter in the previous year, the business earned ($0.31) EPS. Frontier Group has set its Q4 2026 guidance at 0.000-0.200 EPS and its Q3 2026 guidance at -0.100-0.100 EPS. Sell-side analysts expect that Frontier Group will post -0.74 EPS for the current year.

Insider Activity

In other Frontier Group news, major shareholder Group Holdings – Frontier Llc sold 11,700,000 shares of the company’s stock in a transaction that occurred on Thursday, July 9th. The stock was sold at an average price of $7.20, for a total transaction of $84,240,000.00. Following the transaction, the insider owned 22,706,526 shares in the company, valued at approximately $163,486,987.20. This represents a 34.01% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Josh A. Wetzel sold 13,500 shares of the firm’s stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $4.75, for a total value of $64,125.00. Following the completion of the transaction, the chief accounting officer owned 12,061 shares of the company’s stock, valued at approximately $57,289.75. The trade was a 52.81% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 11,811,670 shares of company stock worth $84,843,756. Company insiders own 48.00% of the company’s stock.

Institutional Investors Weigh In On Frontier Group

Hedge funds and other institutional investors have recently bought and sold shares of the business. AQR Capital Management LLC boosted its position in shares of Frontier Group by 46.0% in the 1st quarter. AQR Capital Management LLC now owns 18,777 shares of the company’s stock worth $81,000 after purchasing an additional 5,913 shares in the last quarter. Goldman Sachs Group Inc. grew its position in Frontier Group by 33.0% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,013,456 shares of the company’s stock valued at $4,398,000 after purchasing an additional 251,509 shares during the last quarter. Rhumbline Advisers lifted its stake in shares of Frontier Group by 7.1% in the second quarter. Rhumbline Advisers now owns 117,984 shares of the company’s stock worth $428,000 after buying an additional 7,791 shares in the last quarter. Invesco Ltd. increased its position in shares of Frontier Group by 35.1% during the second quarter. Invesco Ltd. now owns 108,806 shares of the company’s stock valued at $395,000 after acquiring an additional 28,256 shares in the last quarter. Finally, First Trust Advisors LP bought a new position in Frontier Group in the 2nd quarter valued at approximately $477,000.

Key Stories Impacting Frontier Group

Here are the key news stories impacting Frontier Group this week:

• Positive Sentiment: Q2 results significantly beat expectations. Frontier reported an adjusted loss of $0.10 per share, compared with the consensus estimate of a $0.47 loss and a $0.31 loss in the prior-year quarter. Revenue reached a record approximately $1.3 billion, up 38% year over year and ahead of the $1.22 billion analyst estimate. Frontier Airlines Q2 2026 results
• Positive Sentiment: Improved guidance supports the bullish reaction. Frontier expects a third-quarter adjusted EPS result between a $0.10 loss and $0.10 profit, better than the consensus estimate of a $0.24 loss. Fourth-quarter guidance ranges from breakeven to $0.20 per share, while the company is targeting roughly 7% capacity growth. Frontier Q4 guidance
• Positive Sentiment: Management said key operating metrics are improving as its transformation plan takes hold, providing evidence that initiatives aimed at strengthening the airline’s financial performance are beginning to work. Frontier operating metrics update
• Neutral Sentiment: The outlook is improving but not yet consistently profitable: Q3 guidance spans a loss to a profit, and Q4 guidance begins at breakeven. Analysts still expect a full-year loss.
• Negative Sentiment: Frontier continues to report negative net margins and return on equity, while its planned capacity growth could pressure fares and profitability if demand does not keep pace.

Frontier Group Company Profile

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.