Frontier Group (NASDAQ:ULCC) Stock Price Down 19.7% on Disappointing Earnings

Frontier Group Holdings, Inc. (NASDAQ:ULCC - Get Free Report)'s share price was down 19.7% on Tuesday following a dissappointing earnings announcement. The company traded as low as $5.68 and last traded at $5.84. Approximately 1,102,703 shares were traded during mid-day trading, a decline of 47% from the average daily volume of 2,076,930 shares. The stock had previously closed at $7.27.

The company reported ($0.05) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.02) by ($0.03). Frontier Group had a negative net margin of 1.77% and a negative return on equity of 4.09%. The company had revenue of $935.00 million during the quarter, compared to the consensus estimate of $943.30 million. During the same quarter in the previous year, the business posted ($0.14) earnings per share. The business's quarterly revenue was up 5.9% compared to the same quarter last year.

Wall Street Analysts Forecast Growth

Several research firms recently commented on ULCC. TD Cowen raised their target price on Frontier Group from $3.00 to $4.00 and gave the company a "hold" rating in a research report on Monday, September 16th. Susquehanna increased their target price on shares of Frontier Group from $3.00 to $5.00 and gave the company a "neutral" rating in a research report on Wednesday, October 9th. Barclays reduced their price target on shares of Frontier Group from $7.00 to $6.00 and set an "overweight" rating for the company in a research note on Monday, August 12th. Raymond James raised Frontier Group from an "underperform" rating to a "market perform" rating in a report on Monday, September 30th. Finally, Bank of America lowered their price target on Frontier Group from $5.50 to $5.00 and set a "neutral" rating on the stock in a research report on Friday, September 13th. One 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 stock. According to data from MarketBeat, Frontier Group has a consensus rating of "Hold" and a consensus target price of $6.02.

Insiders Place Their Bets

In related news, SVP Steve Schuller sold 10,000 shares of the company's stock in a transaction that occurred on Friday, October 4th. The shares were sold at an average price of $6.00, for a total value of $60,000.00. Following the completion of the sale, the senior vice president now owns 34,035 shares in the company, valued at approximately $204,210. This represents a 0.00 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 81.50% of the company's stock.

Institutional Trading of Frontier Group

A number of hedge funds have recently made changes to their positions in ULCC. Blue Trust Inc. acquired a new position in Frontier Group in the 2nd quarter valued at approximately $45,000. nVerses Capital LLC grew its holdings in shares of Frontier Group by 152.5% during the 2nd quarter. nVerses Capital LLC now owns 10,100 shares of the company's stock valued at $50,000 after acquiring an additional 6,100 shares in the last quarter. Ballentine Partners LLC acquired a new position in shares of Frontier Group in the third quarter worth $55,000. Vanguard Personalized Indexing Management LLC purchased a new stake in shares of Frontier Group during the second quarter worth $58,000. Finally, Arizona State Retirement System boosted its position in Frontier Group by 29.0% during the second quarter. Arizona State Retirement System now owns 15,672 shares of the company's stock valued at $77,000 after purchasing an additional 3,521 shares during the last quarter.

Frontier Group Stock Down 14.4 %

The company has a debt-to-equity ratio of 0.43, a current ratio of 0.52 and a quick ratio of 0.48. The business has a 50 day simple moving average of $4.94 and a 200 day simple moving average of $4.97. The stock has a market cap of $1.40 billion, a PE ratio of -21.45 and a beta of 2.55.

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.