Frontline (NYSE:FRO) Stock Price Down 4.5% After Earnings Miss

Shares of Frontline PLC (NYSE:FRO) traded down 4.5% on Monday following a weaker than expected earnings announcement. The company traded as low as $24.45 and last traded at $24.73. 1,008,397 shares traded hands during trading, a decline of 65% from the average session volume of 2,868,306 shares. The stock had previously closed at $25.90.

The shipping company reported $0.19 earnings per share for the quarter, missing the consensus estimate of $0.23 by ($0.04). Frontline had a net margin of 12.94% and a return on equity of 10.27%. The company had revenue of $257.04 million for the quarter, compared to the consensus estimate of $265.23 million. During the same quarter last year, the business earned $0.34 earnings per share.

Frontline Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, December 19th. Stockholders of record on Friday, December 12th will be issued a $0.19 dividend. This represents a $0.76 annualized dividend and a dividend yield of 3.1%. The ex-dividend date of this dividend is Friday, December 12th. Frontline’s payout ratio is presently 77.55%.

Analyst Upgrades and Downgrades

FRO has been the topic of several research analyst reports. Wall Street Zen raised shares of Frontline from a “sell” rating to a “hold” rating in a research note on Friday, September 26th. Evercore ISI increased their price objective on Frontline from $22.00 to $26.00 and gave the company an “outperform” rating in a research report on Tuesday, October 28th. BTIG Research boosted their target price on Frontline from $25.00 to $30.00 and gave the stock a “buy” rating in a research report on Wednesday, September 17th. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Frontline in a research note on Monday, November 17th. Finally, Jefferies Financial Group lifted their price objective on Frontline from $28.00 to $30.00 and gave the stock a “buy” rating in a research report on Friday. Four analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $24.62.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in FRO. CIBC Private Wealth Group LLC acquired a new stake in Frontline during the third quarter worth approximately $80,000. Sunbelt Securities Inc. acquired a new stake in Frontline during the third quarter worth about $41,000. Triumph Capital Management bought a new position in Frontline in the 3rd quarter valued at about $97,000. XTX Topco Ltd acquired a new position in shares of Frontline in the 3rd quarter valued at approximately $652,000. Finally, Tidal Investments LLC lifted its holdings in shares of Frontline by 39.3% during the 3rd quarter. Tidal Investments LLC now owns 110,988 shares of the shipping company’s stock worth $2,529,000 after acquiring an additional 31,286 shares during the period. 22.70% of the stock is owned by institutional investors and hedge funds.

Frontline Price Performance

The company’s 50-day moving average is $23.74 and its 200-day moving average is $20.66. The firm has a market cap of $5.54 billion, a price-to-earnings ratio of 23.25 and a beta of 0.14. The company has a current ratio of 1.88, a quick ratio of 1.88 and a debt-to-equity ratio of 1.38.

Frontline Company Profile

Frontline plc, a shipping company, engages in the seaborne transportation of crude oil and oil products worldwide. It owns and operates oil and product tankers. As of December 31, 2022, the company operated a fleet of 70 vessels. It is also involved in the charter, purchase, and sale of vessels. The company was founded in 1985 and is based in Limassol, Cyprus.