Frontline (NYSE:FRO) Stock Price Down 6.5% – Time to Sell?

Shares of Frontline PLC (NYSE:FRO) traded down 6.5% on Thursday. The company traded as low as $52.62 and last traded at $52.6030. 4,224,572 shares were traded during mid-day trading, an increase of 25% from the average session volume of 3,371,804 shares. The stock had previously closed at $56.27.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on the company. Wall Street Zen upgraded Frontline from a “buy” rating to a “strong-buy” rating in a research report on Saturday, August 29th. BTIG Research increased their price objective on shares of Frontline from $55.00 to $70.00 and gave the company a “buy” rating in a report on Friday, September 18th. Weiss Ratings raised Frontline from a “buy (b)” rating to a “buy (b+)” rating in a research note on Thursday, October 8th. Danske cut Frontline from a “hold” rating to a “sell” rating in a report on Friday, August 21st. Finally, Nordea Equity Research lowered Frontline to a “hold” rating in a research report on Monday, August 31st. Four investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, Frontline has an average rating of “Hold” and a consensus price target of $45.37.

Frontline Trading Down 6.7%

The company has a quick ratio of 1.87, a current ratio of 1.87 and a debt-to-equity ratio of 0.69. The stock has a market cap of $11.69 billion, a PE ratio of 7.87 and a beta of 0.15. The stock has a 50-day moving average of $47.45 and a 200 day moving average of $40.70.

Frontline (NYSE:FRO) last issued its earnings results on Friday, August 28th. The shipping company reported $2.61 EPS for the quarter, missing analysts’ consensus estimates of $2.74 by ($0.13). The company had revenue of $943.30 million during the quarter, compared to analysts’ expectations of $758.89 million. Frontline had a return on equity of 44.24% and a net margin of 49.47%. The firm’s quarterly revenue was up 96.5% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.36 EPS.

Frontline Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, September 28th. Shareholders of record on Friday, September 18th were given a dividend of $2.61 per share. This is an increase from Frontline’s previous quarterly dividend of $1.55. This represents a $10.44 dividend on an annualized basis and a yield of 19.9%. The ex-dividend date was Friday, September 18th. Frontline’s dividend payout ratio (DPR) is currently 156.52%.

Hedge Funds Weigh In On Frontline

A number of large investors have recently added to or reduced their stakes in FRO. Arrowstreet Capital Limited Partnership raised its position in shares of Frontline by 4,659.9% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 5,783,681 shares of the shipping company’s stock worth $202,080,000 after purchasing an additional 5,662,172 shares during the last quarter. BlackRock Inc. acquired a new position in Frontline during the second quarter worth about $50,846,000. Renaissance Technologies LLC raised its holdings in Frontline by 133.5% in the 1st quarter. Renaissance Technologies LLC now owns 927,838 shares of the shipping company’s stock valued at $32,344,000 after acquiring an additional 530,500 shares during the last quarter. Bank of America Corp DE acquired a new position in shares of Frontline during the 2nd quarter worth approximately $30,123,000. Finally, Amundi increased its holdings in shares of Frontline by 162.6% in the second quarter. Amundi now owns 847,488 shares of the shipping company’s stock valued at $29,809,000 after purchasing an additional 524,804 shares during the last quarter. 22.70% of the stock is currently owned by institutional investors and hedge funds.

About Frontline

Frontline plc (NYSE: FRO) is a maritime transportation company that owns and operates a fleet of crude oil and refined petroleum product tankers. Its vessels transport energy commodities for oil companies, commodity traders, refineries and other customers in international markets.

The company’s fleet primarily includes very large crude carriers (VLCCs), Suezmax tankers and Aframax or LR2 tankers. Frontline generally employs its vessels through a combination of voyage charters, time charters and commercial pool arrangements, allowing it to serve major global shipping routes and connect oil-producing regions with refineries and consuming markets.

Frontline has roots in the Norwegian shipping industry and is associated with shipping entrepreneur John Fredriksen.