Frontline (NYSE:FRO) Shares Gap Down - Here's Why

Frontline plc (NYSE:FRO - Get Free Report) gapped down prior to trading on Thursday . The stock had previously closed at $15.75, but opened at $15.09. Frontline shares last traded at $14.96, with a volume of 979,103 shares.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on the stock. Jefferies Financial Group dropped their price objective on shares of Frontline from $26.00 to $20.00 and set a "buy" rating on the stock in a research note on Tuesday, December 17th. Kepler Capital Markets downgraded shares of Frontline from a "hold" rating to a "strong sell" rating in a research note on Thursday. Two investment analysts have rated the stock with a sell rating, three have given a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $24.46.

Frontline Stock Performance

The company has a debt-to-equity ratio of 1.44, a quick ratio of 1.43 and a current ratio of 1.43. The company has a market capitalization of $3.30 billion, a PE ratio of 6.05 and a beta of -0.04. The company has a 50 day moving average price of $16.59 and a 200 day moving average price of $18.09.

Frontline (NYSE:FRO - Get Free Report) last announced its quarterly earnings data on Friday, February 28th. The shipping company reported $0.20 earnings per share for the quarter, hitting the consensus estimate of $0.20. The company had revenue of $425.60 million during the quarter, compared to analyst estimates of $273.16 million. Frontline had a net margin of 25.64% and a return on equity of 19.25%. The firm's revenue for the quarter was up 2.6% compared to the same quarter last year. During the same period last year, the business earned $0.46 EPS. Equities analysts forecast that Frontline plc will post 1.78 EPS for the current year.

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Frontline Cuts Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, March 31st. Shareholders of record on Friday, March 14th will be issued a $0.20 dividend. This represents a $0.80 dividend on an annualized basis and a yield of 5.40%. The ex-dividend date of this dividend is Friday, March 14th. Frontline's dividend payout ratio is presently 36.04%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Cooper Creek Partners Management LLC acquired a new stake in Frontline during the fourth quarter worth about $41,447,000. Hartree Partners LP increased its position in Frontline by 482.6% in the fourth quarter. Hartree Partners LP now owns 1,061,000 shares of the shipping company's stock worth $15,047,000 after buying an additional 878,885 shares during the period. Mirabella Financial Services LLP acquired a new stake in Frontline in the fourth quarter worth $9,224,000. Marshall Wace LLP boosted its holdings in shares of Frontline by 137.2% during the fourth quarter. Marshall Wace LLP now owns 1,090,427 shares of the shipping company's stock valued at $15,473,000 after acquiring an additional 630,685 shares during the period. Finally, The Manufacturers Life Insurance Company boosted its holdings in shares of Frontline by 1,326.2% during the third quarter. The Manufacturers Life Insurance Company now owns 527,470 shares of the shipping company's stock valued at $12,053,000 after acquiring an additional 490,486 shares during the period. 22.70% of the stock is owned by institutional investors and hedge funds.

About Frontline

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.