Frontier Group (NASDAQ:ULCC) Shares Gap Up – Should You Buy?

Frontier Group Holdings, Inc. (NASDAQ:ULCC)’s stock price gapped up prior to trading on Tuesday . The stock had previously closed at $5.79, but opened at $6.03. Frontier Group shares last traded at $5.9350, with a volume of 252,629 shares changing hands.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on ULCC. Citigroup raised their target price on shares of Frontier Group from $5.00 to $9.00 and gave the stock a “neutral” rating in a research report on Friday, June 26th. Wall Street Zen upgraded Frontier Group from a “sell” rating to a “hold” rating in a report on Sunday, June 21st. Susquehanna increased their price target on Frontier Group from $4.50 to $7.00 and gave the stock a “neutral” rating in a research note on Tuesday, July 7th. UBS Group raised their price objective on Frontier Group from $4.00 to $7.00 and gave the stock a “neutral” rating in a report on Tuesday, June 23rd. Finally, Barclays upped their target price on Frontier Group from $4.00 to $7.00 and gave the company an “underweight” rating in a research note on Thursday, June 25th. One analyst has rated the stock with a Strong Buy rating, five have issued a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Reduce” and an average price target of $6.86.

Frontier Group Price Performance

The company has a 50 day simple moving average of $6.85 and a 200 day simple moving average of $5.38. The company has a market capitalization of $1.37 billion, a price-to-earnings ratio of -3.55 and a beta of 2.59. The company has a quick ratio of 0.54, a current ratio of 0.58 and a debt-to-equity ratio of 2.77.

Frontier Group (NASDAQ:ULCC) last released its quarterly earnings data on Wednesday, July 29th. The company reported ($0.10) earnings per share for the quarter, beating the consensus estimate of ($0.47) by $0.37. Frontier Group had a negative return on equity of 35.54% and a negative net margin of 9.29%.The business had revenue of $1.28 billion for the quarter, compared to analyst estimates of $1.22 billion. During the same period in the previous year, the company posted ($0.31) EPS. The company’s revenue was up 37.7% compared to the same quarter last year. 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. As a group, research analysts predict that Frontier Group Holdings, Inc. will post -0.34 EPS for the current year.

Insider Activity

In other Frontier Group news, EVP Howard Diamond sold 24,195 shares of Frontier Group stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $8.25, for a total transaction of $199,608.75. Following the transaction, the executive vice president directly owned 133,126 shares of the company’s stock, valued at $1,098,289.50. The trade was a 15.38% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, VP Trevor J. Stedke sold 167,277 shares of the business’s stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $8.03, for a total transaction of $1,343,234.31. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 12,053,742 shares of company stock valued at $87,051,587 over the last quarter. 48.00% of the stock is owned by insiders.

Institutional Trading of Frontier Group

Large investors have recently added to or reduced their stakes in the stock. BlackRock Inc. purchased a new stake in shares of Frontier Group during the 2nd quarter valued at about $47,205,000. U S Global Investors Inc. boosted its holdings in Frontier Group by 63.9% in the 1st quarter. U S Global Investors Inc. now owns 6,781,412 shares of the company’s stock worth $23,938,000 after acquiring an additional 2,643,448 shares during the period. Silver Point Capital L.P. acquired a new stake in Frontier Group in the second quarter valued at approximately $12,141,850,000. Balyasny Asset Management L.P. acquired a new stake in Frontier Group in the second quarter valued at approximately $5,387,000. Finally, Mountaineer Partners Management LLC purchased a new stake in shares of Frontier Group during the fourth quarter valued at approximately $4,490,000.

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.