Frontier Group (NASDAQ:ULCC) Stock Falls 6.1% – Should You Sell?

Frontier Group Holdings, Inc. (NASDAQ:ULCC) was down 6.1% on Tuesday. The company traded as low as $7.13 and last traded at $6.9750. Approximately 309,398 shares were traded during mid-day trading, a decline of 93% from the average daily volume of 4,165,353 shares. The stock had previously closed at $7.43.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on ULCC shares. UBS Group raised their price target on Frontier Group from $6.00 to $7.00 and gave the stock a “neutral” rating in a research note on Friday. Barclays cut their target price on Frontier Group from $7.00 to $5.00 and set an “underweight” rating for the company in a research report on Friday, September 11th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Frontier Group in a research note on Wednesday, October 28th. Susquehanna raised their target price on shares of Frontier Group from $6.00 to $6.50 and gave the company a “neutral” rating in a report on Thursday, October 29th. Finally, Zacks Research downgraded Frontier Group from a “strong-buy” rating to a “hold” rating in a research report on Thursday, August 27th. Six equities research analysts have rated the stock with a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Reduce” and a consensus price target of $6.50.

Frontier Group Price Performance

The company has a debt-to-equity ratio of 2.77, a quick ratio of 0.54 and a current ratio of 0.58. The firm has a fifty day simple moving average of $5.75 and a 200 day simple moving average of $5.44. The company has a market capitalization of $1.56 billion, a PE ratio of -3.80 and a beta of 2.64.

Frontier Group (NASDAQ:ULCC) last released its quarterly earnings data on Wednesday, October 28th. The company reported $0.18 earnings per share for the quarter, beating the consensus estimate of ($0.06) by $0.24. Frontier Group had a positive return on equity of 1.06% and a negative net margin of 8.93%. The firm had revenue of $1.35 billion during the quarter, compared to the consensus estimate of $1.29 billion. During the same period in the previous year, the company posted ($0.34) earnings per share. The firm’s quarterly revenue was up 52.9% on a year-over-year basis. Equities analysts anticipate that Frontier Group Holdings, Inc. will post -0.39 EPS for the current year.

Insider Buying and Selling

In related news, SVP Steve Schuller sold 7,500 shares of Frontier Group stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $6.00, for a total transaction of $45,000.00. Following the transaction, the senior vice president directly owned 79,675 shares of the company’s stock, valued at $478,050. This trade represents a 8.60% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, CFO Mark Mitchell sold 125,000 shares of the company’s stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $8.09, for a total value of $1,011,250.00. Following the sale, the chief financial officer owned 53,785 shares of the company’s stock, valued at approximately $435,120.65. This represents a 69.92% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 135,980 shares of company stock worth $1,076,121. Insiders own 48.00% of the company’s stock.

Hedge Funds Weigh In On Frontier Group

Several institutional investors and hedge funds have recently bought and sold shares of the company. Quantbot Technologies LP purchased a new stake in Frontier Group during the 2nd quarter worth approximately $888,000. U S Global Investors Inc. increased its position in shares of 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 valued at $23,938,000 after acquiring an additional 2,643,448 shares during the period. GSA Capital Partners LLP acquired a new position in shares of Frontier Group in the 2nd quarter valued at $4,373,000. BlackRock Inc. purchased a new position in Frontier Group in the 2nd quarter worth $47,205,000. Finally, PDT Partners LLC purchased a new position in Frontier Group in the 2nd quarter worth $1,586,000.

Frontier Group Company Profile

Frontier Group Holdings, Inc is the parent company of Frontier Airlines, an ultra-low-cost passenger airline headquartered in Denver, Colorado. The company operates a low-fare, point-to-point air transportation business, primarily serving leisure travelers and price-conscious customers.

Frontier Airlines offers scheduled flights to destinations across the United States, as well as selected locations in the Caribbean and Latin America. Its business model emphasizes low base fares with additional charges for optional services such as checked baggage, seat selection, priority boarding and other travel-related products.

Frontier Airlines traces its roots to 1994 and has expanded its network through a fleet focused largely on Airbus narrow-body aircraft.