Zacks Research Downgrades Frontier Group (NASDAQ:ULCC) to Hold

Frontier Group (NASDAQ:ULCC) was downgraded by Zacks Research from a “strong-buy” rating to a “hold” rating in a research report issued to clients and investors on Thursday,Zacks.com reports.

A number of other equities research analysts have also recently issued reports on the company. Barclays upped their price objective on Frontier Group from $4.00 to $7.00 and gave the stock an “underweight” rating in a research note on Thursday, June 25th. Wall Street Zen upgraded shares of Frontier Group from a “sell” rating to a “hold” rating in a report on Sunday, June 21st. Citigroup upped their price target on shares of Frontier Group from $5.00 to $9.00 and gave the stock a “neutral” rating in a research report on Friday, June 26th. Susquehanna increased their price target on shares of Frontier Group from $4.50 to $7.00 and gave the company a “neutral” rating in a research note on Tuesday, July 7th. Finally, UBS Group lifted their price objective on shares of Frontier Group from $4.00 to $7.00 and gave the company a “neutral” rating in a research report on Tuesday, June 23rd. Six equities research analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Reduce” and a consensus target price of $6.86.

Frontier Group Price Performance

Shares of NASDAQ ULCC opened at $5.84 on Thursday. The company has a debt-to-equity ratio of 2.77, a current ratio of 0.58 and a quick ratio of 0.54. The business has a 50-day moving average of $6.79 and a 200-day moving average of $5.38. The stock has a market capitalization of $1.34 billion, a price-to-earnings ratio of -3.48 and a beta of 2.59. Frontier Group has a fifty-two week low of $3.02 and a fifty-two week high of $8.40.

Frontier Group (NASDAQ:ULCC) last released its earnings results on Wednesday, July 29th. The company reported ($0.10) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.47) by $0.37. Frontier Group had a negative return on equity of 35.54% and a negative net margin of 9.29%.The business had revenue of $1.28 billion for the quarter, compared to analyst estimates of $1.22 billion. During the same quarter in the prior year, the company posted ($0.31) earnings per share. Frontier Group’s revenue was up 37.7% on a year-over-year basis. Frontier Group has set its Q4 2026 guidance at 0.000-0.200 EPS and its Q3 2026 guidance at -0.100-0.100 EPS. As a group, sell-side analysts predict that Frontier Group will post -0.34 earnings per share for the current fiscal year.

Insider Activity at Frontier Group

In related news, SVP Steve Schuller sold 10,000 shares of the business’s stock in a transaction that occurred on Friday, June 5th. The stock was sold at an average price of $6.00, for a total transaction of $60,000.00. Following the transaction, the senior vice president directly owned 97,175 shares of the company’s stock, valued at approximately $583,050. The trade was a 9.33% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Trevor J. Stedke sold 167,277 shares of the business’s stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $8.03, for a total value of $1,343,234.31. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 12,053,742 shares of company stock worth $87,051,587 in the last three months. 48.00% of the stock is owned by company insiders.

Hedge Funds Weigh In On Frontier Group

Several large investors have recently modified their holdings of the stock. Caitong International Asset Management Co. Ltd acquired a new stake in shares of Frontier Group during the 3rd quarter worth about $27,000. Atlas Wealth LLC acquired a new position in Frontier Group in the 1st quarter valued at about $33,000. Quarry LP acquired a new position in Frontier Group in the 4th quarter valued at about $34,000. Allworth Financial LP bought a new position in Frontier Group in the 2nd quarter valued at about $43,000. Finally, Legal & General Group Plc bought a new position in Frontier Group in the 2nd quarter valued at about $46,000.

About Frontier Group

Frontier Group, trading on Nasdaq under the ticker ULCC, is the holding company for Frontier Airlines, an ultra-low-cost carrier based in Denver, Colorado. The company’s core business centers on providing no-frills air travel across a point-to-point network while generating ancillary revenue from add-on services such as baggage fees, seat selection, priority boarding and in-flight refreshments. This fare-plus-a-la-carte model allows Frontier to offer competitive base fares and maintain low operating costs.

Founded in February 1994 by industry veterans Andrew Levy and Russell Beardsmore, Frontier Airlines commenced operations with a small fleet of MD-80 aircraft.