Frontier Group (NASDAQ:ULCC) Shares Gap Up Following Analyst Upgrade

Frontier Group Holdings, Inc. (NASDAQ:ULCC) shares gapped up prior to trading on Tuesday after Deutsche Bank Aktiengesellschaft upgraded the stock from a hold rating to a buy rating. The stock had previously closed at $4.90, but opened at $5.63. Deutsche Bank Aktiengesellschaft now has a $8.00 price target on the stock, up from their previous price target of $4.00. Frontier Group shares last traded at $5.79, with a volume of 2,945,789 shares changing hands.

Other equities research analysts also recently issued research reports about the company. Bank of America decreased their price objective on Frontier Group from $4.75 to $4.00 and set a “neutral” rating for the company in a report on Tuesday, July 1st. UBS Group reduced their price objective on Frontier Group from $4.00 to $3.50 and set a “neutral” rating for the company in a research note on Wednesday, August 6th. Finally, Morgan Stanley cut their price target on Frontier Group from $10.00 to $9.00 and set an “equal weight” rating for the company in a research note on Monday, May 19th. Two analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $5.61.

Hedge Funds Weigh In On Frontier Group

Several hedge funds have recently made changes to their positions in ULCC. Wealth Enhancement Advisory Services LLC grew its stake in Frontier Group by 71.8% in the first quarter. Wealth Enhancement Advisory Services LLC now owns 18,061 shares of the company’s stock worth $78,000 after purchasing an additional 7,546 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in shares of Frontier Group by 8.4% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 75,359 shares of the company’s stock valued at $536,000 after buying an additional 5,834 shares during the last quarter. Dimensional Fund Advisors LP lifted its holdings in Frontier Group by 210.4% in the fourth quarter. Dimensional Fund Advisors LP now owns 804,693 shares of the company’s stock valued at $5,721,000 after acquiring an additional 545,485 shares during the period. Barclays PLC lifted its holdings in Frontier Group by 12.1% in the fourth quarter. Barclays PLC now owns 81,710 shares of the company’s stock valued at $581,000 after acquiring an additional 8,844 shares during the period. Finally, Rhumbline Advisers lifted its holdings in Frontier Group by 99.1% in the first quarter. Rhumbline Advisers now owns 110,193 shares of the company’s stock valued at $478,000 after acquiring an additional 54,839 shares during the period.

Frontier Group Stock Performance

The business has a fifty day simple moving average of $4.21 and a two-hundred day simple moving average of $4.48. The company has a quick ratio of 0.36, a current ratio of 0.41 and a debt-to-equity ratio of 0.53. The company has a market cap of $1.28 billion, a P/E ratio of -35.06 and a beta of 2.63.

Frontier Group (NASDAQ:ULCC) last posted its quarterly earnings data on Tuesday, August 5th. The company reported ($0.31) EPS for the quarter, missing the consensus estimate of ($0.28) by ($0.03). Frontier Group had a negative return on equity of 12.56% and a negative net margin of 0.87%.The company had revenue of $929.00 million during the quarter, compared to the consensus estimate of $951.92 million. During the same period last year, the business earned $0.14 EPS. The firm’s quarterly revenue was down 4.5% compared to the same quarter last year. Frontier Group has set its Q3 2025 guidance at -0.420–0.260 EPS. On average, sell-side analysts anticipate that Frontier Group Holdings, Inc. will post 0.91 EPS for the current year.

Frontier Group Company Profile

Frontier Group Holdings, Inc, provides low-fare passenger airline services to leisure travelers in the United States and Latin America. The company sells its products through direct distribution channels, including its website, mobile app, and contact centers. As of December 31, 2023, it had a fleet of 136 Airbus single-aisle aircrafts.