Frontier Group (NASDAQ:ULCC) Shares Gap Down - Should You Sell?

Frontier Group Holdings, Inc. (NASDAQ:ULCC - Get Free Report)'s stock price gapped down before the market opened on Tuesday . The stock had previously closed at $6.93, but opened at $6.53. Frontier Group shares last traded at $6.35, with a volume of 814,067 shares changing hands.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on the company. UBS Group raised their price objective on Frontier Group from $6.00 to $8.50 and gave the stock a "neutral" rating in a research note on Tuesday, January 7th. Morgan Stanley raised their target price on shares of Frontier Group from $7.00 to $10.00 and gave the stock an "equal weight" rating in a research note on Monday, February 24th. Deutsche Bank Aktiengesellschaft downgraded shares of Frontier Group from a "buy" rating to a "hold" rating and lowered their price target for the company from $12.00 to $8.00 in a report on Tuesday. Susquehanna increased their price objective on shares of Frontier Group from $6.00 to $8.00 and gave the stock a "neutral" rating in a research note on Tuesday, January 7th. Finally, Barclays lifted their target price on shares of Frontier Group from $10.00 to $14.00 and gave the company an "overweight" rating in a research note on Monday, February 10th. One equities research analyst has rated the stock with a sell rating, nine have assigned a hold rating and one has given a buy rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $7.74.

Frontier Group Stock Up 1.9 %

The company has a quick ratio of 0.48, a current ratio of 0.53 and a debt-to-equity ratio of 0.45. The stock has a market capitalization of $1.60 billion, a P/E ratio of 19.47 and a beta of 2.35. The company has a fifty day moving average price of $8.11 and a 200-day moving average price of $6.39.

Frontier Group (NASDAQ:ULCC - Get Free Report) last released its quarterly earnings data on Friday, February 7th. The company reported $0.23 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.03 by $0.20. Frontier Group had a return on equity of 9.83% and a net margin of 2.25%. As a group, research analysts forecast that Frontier Group Holdings, Inc. will post 0.91 EPS for the current fiscal year.

Insider Activity at Frontier Group

In other news, SVP Steve Schuller sold 5,000 shares of the company's stock in a transaction dated Thursday, January 2nd. The shares were sold at an average price of $7.07, for a total transaction of $35,350.00. Following the sale, the senior vice president now directly owns 47,590 shares in the company, valued at approximately $336,461.30. This represents a 9.51 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Howard Diamond sold 87,830 shares of the stock in a transaction dated Thursday, February 20th. The shares were sold at an average price of $8.77, for a total transaction of $770,269.10. Following the completion of the transaction, the executive vice president now directly owns 175,886 shares of the company's stock, valued at approximately $1,542,520.22. The trade was a 33.30 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 845,830 shares of company stock valued at $6,812,139 over the last 90 days. 81.50% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Frontier Group

Several large investors have recently modified their holdings of ULCC. US Bancorp DE boosted its stake in Frontier Group by 930.3% during the third quarter. US Bancorp DE now owns 15,083 shares of the company's stock worth $81,000 after buying an additional 13,619 shares during the period. Catalina Capital Group LLC bought a new stake in shares of Frontier Group in the 3rd quarter worth about $119,000. Victory Capital Management Inc. purchased a new position in shares of Frontier Group during the 3rd quarter worth about $54,000. OneDigital Investment Advisors LLC grew its holdings in Frontier Group by 4.9% during the 3rd quarter. OneDigital Investment Advisors LLC now owns 309,838 shares of the company's stock valued at $1,658,000 after purchasing an additional 14,459 shares during the last quarter. Finally, Intech Investment Management LLC purchased a new stake in Frontier Group in the 3rd quarter worth about $72,000.

About Frontier Group

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.