Frontline (NYSE:FRO) Sets New 12-Month High – What’s Next?

Shares of Frontline PLC (NYSE:FRO) hit a new 52-week high during mid-day trading on Thursday . The stock traded as high as $45.59 and last traded at $45.4480, with a volume of 1839620 shares. The stock had previously closed at $44.32.

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on FRO. Wall Street Zen upgraded shares of Frontline from a “buy” rating to a “strong-buy” rating in a research note on Saturday, August 29th. Pareto Securities downgraded shares of Frontline from a “buy” rating to a “hold” rating and set a $39.46 target price on the stock. in a research note on Monday, May 25th. Weiss Ratings upgraded Frontline from a “buy (b-)” rating to a “buy (b)” rating in a research report on Friday, August 28th. BTIG Research boosted their price target on shares of Frontline from $45.00 to $55.00 and gave the stock a “buy” rating in a research note on Wednesday, June 24th. Finally, Nordea Equity Research lowered shares of Frontline to a “hold” rating in a report on Monday. Four equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $41.62.

Frontline Price Performance

The stock has a market capitalization of $10.27 billion, a P/E ratio of 6.92 and a beta of 0.05. The company has a debt-to-equity ratio of 0.69, a quick ratio of 2.03 and a current ratio of 1.87. The firm has a fifty day moving average price of $39.84 and a two-hundred day moving average price of $37.30.

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

Frontline Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, September 28th. Shareholders of record on Friday, September 18th will be given a $2.61 dividend. This is a positive change from Frontline’s previous quarterly dividend of $1.55. The ex-dividend date of this dividend is Friday, September 18th. This represents a $10.44 annualized dividend and a yield of 22.6%. Frontline’s dividend payout ratio is presently 92.95%.

Hedge Funds Weigh In On Frontline

Several institutional investors have recently made changes to their positions in the company. Royal Bank of Canada boosted its position in Frontline by 32.3% during the first quarter. Royal Bank of Canada now owns 26,342 shares of the shipping company’s stock valued at $392,000 after purchasing an additional 6,424 shares in the last quarter. Millennium Management LLC acquired a new stake in shares of Frontline during the first quarter worth $7,587,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in Frontline by 12.4% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 185,226 shares of the shipping company’s stock valued at $2,751,000 after purchasing an additional 20,370 shares during the last quarter. American Century Companies Inc. increased its holdings in Frontline by 93.6% in the 2nd quarter. American Century Companies Inc. now owns 72,539 shares of the shipping company’s stock worth $1,190,000 after buying an additional 35,078 shares during the period. Finally, Invesco Ltd. raised its holdings in shares of Frontline by 215.8% during the second quarter. Invesco Ltd. now owns 91,039 shares of the shipping company’s stock worth $1,494,000 after purchasing an additional 62,210 shares during the last quarter. 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.