Frontline (NYSE:FRO) Shares Gap Up - Still a Buy?

Frontline plc (NYSE:FRO - Get Free Report)'s share price gapped up prior to trading on Tuesday . The stock had previously closed at $14.27, but opened at $15.40. Frontline shares last traded at $15.54, with a volume of 2,240,719 shares trading hands.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on the company. Jefferies Financial Group reduced their target price on Frontline from $26.00 to $20.00 and set a "buy" rating on the stock in a report on Tuesday, December 17th. Fearnley Fonds upgraded shares of Frontline to a "strong-buy" rating in a research note on Friday, September 27th. BTIG Research raised shares of Frontline from a "neutral" rating to a "buy" rating and set a $30.00 price target for the company in a report on Monday, October 7th. Finally, Kepler Capital Markets downgraded shares of Frontline from a "buy" rating to a "hold" rating and set a $15.83 price objective for the company. in a research report on Thursday, December 12th. One investment analyst has rated the stock with a sell rating, two have issued a hold rating, four have assigned a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat, Frontline presently has an average rating of "Moderate Buy" and a consensus price target of $24.36.

Frontline Stock Performance

The company has a current ratio of 1.43, a quick ratio of 1.43 and a debt-to-equity ratio of 1.44. The company's 50-day moving average is $16.65 and its two-hundred day moving average is $21.12. The stock has a market capitalization of $3.55 billion, a P/E ratio of 6.50 and a beta of 0.01.

Frontline (NYSE:FRO - Get Free Report) last issued its quarterly earnings data on Wednesday, November 27th. The shipping company reported $0.34 earnings per share for the quarter, missing analysts' consensus estimates of $0.39 by ($0.05). Frontline had a net margin of 25.64% and a return on equity of 19.25%. During the same quarter in the prior year, the firm earned $0.36 EPS. As a group, sell-side analysts anticipate that Frontline plc will post 1.83 EPS for the current fiscal year.

Frontline Cuts Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, December 31st. Investors of record on Wednesday, December 11th were paid a dividend of $0.34 per share. The ex-dividend date was Wednesday, December 11th. This represents a $1.36 dividend on an annualized basis and a dividend yield of 8.54%. Frontline's dividend payout ratio is presently 55.51%.

Institutional Investors Weigh In On Frontline

A number of institutional investors have recently added to or reduced their stakes in FRO. Commonwealth Equity Services LLC grew its holdings in shares of Frontline by 234.6% in the 2nd quarter. Commonwealth Equity Services LLC now owns 35,116 shares of the shipping company's stock worth $905,000 after acquiring an additional 24,620 shares during the last quarter. TD Asset Management Inc boosted its stake in shares of Frontline by 9.7% during the 2nd quarter. TD Asset Management Inc now owns 9,840 shares of the shipping company's stock worth $258,000 after acquiring an additional 871 shares in the last quarter. Ashton Thomas Private Wealth LLC acquired a new stake in shares of Frontline in the second quarter worth $31,000. DekaBank Deutsche Girozentrale lifted its position in shares of Frontline by 6.3% during the 2nd quarter. DekaBank Deutsche Girozentrale now owns 116,988 shares of the shipping company's stock worth $3,118,000 after purchasing an additional 6,933 shares during the last quarter. Finally, Hsbc Holdings PLC boosted its stake in Frontline by 7.7% during the 2nd quarter. Hsbc Holdings PLC now owns 1,932,842 shares of the shipping company's stock valued at $50,683,000 after purchasing an additional 138,011 shares during the period. 22.70% of the stock is currently 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.