Frontline (NYSE:FRO) Trading 7.2% Higher - Here's Why

Frontline plc (NYSE:FRO - Get Free Report) shares rose 7.2% during trading on Tuesday . The company traded as high as $19.08 and last traded at $18.81. Approximately 2,808,133 shares traded hands during mid-day trading, a decline of 31% from the average daily volume of 4,071,271 shares. The stock had previously closed at $17.55.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on FRO shares. Kepler Capital Markets cut shares of Frontline from a "buy" rating to a "hold" rating and set a $15.83 price target for the company. in a research report on Thursday, December 12th. Jefferies Financial Group dropped their target price on shares of Frontline from $26.00 to $20.00 and set a "buy" rating for the company in a research report on Tuesday, December 17th. One investment analyst has rated the stock with a sell rating, two have given a hold rating, three have assigned a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat.com, Frontline currently has a consensus rating of "Moderate Buy" and an average price target of $24.03.

Frontline Stock Performance

The stock's 50-day moving average is $15.80 and its 200 day moving average is $19.89. 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 firm has a market cap of $3.97 billion and a P/E ratio of 7.28.

Frontline (NYSE:FRO - Get Free Report) last announced its earnings results 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 return on equity of 19.25% and a net margin of 25.64%. During the same quarter last year, the business earned $0.36 earnings per share. On average, research analysts predict that Frontline plc will post 1.78 earnings per share for the current year.

Frontline Cuts Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, December 31st. Shareholders of record on Wednesday, December 11th were paid a $0.34 dividend. This represents a $1.36 dividend on an annualized basis and a yield of 7.63%. The ex-dividend date was Wednesday, December 11th. Frontline's dividend payout ratio is currently 55.51%.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. The Manufacturers Life Insurance Company raised its position in shares of Frontline by 1,326.2% in 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 buying an additional 490,486 shares in the last quarter. M&G PLC raised its stake in Frontline by 27.2% in the third quarter. M&G PLC now owns 1,110,763 shares of the shipping company's stock valued at $25,164,000 after purchasing an additional 237,446 shares in the last quarter. Point72 Europe London LLP bought a new stake in Frontline during the third quarter worth about $3,219,000. Cinctive Capital Management LP grew its stake in Frontline by 120.8% during the third quarter. Cinctive Capital Management LP now owns 104,557 shares of the shipping company's stock worth $2,389,000 after buying an additional 57,206 shares in the last quarter. Finally, GSA Capital Partners LLP bought a new position in Frontline in the 3rd quarter valued at about $1,077,000. 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.