Frontline (NYSE:FRO) Shares Gap Up – Here’s Why

Frontline plc (NYSE:FRO)’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 changing hands.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on the stock. 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 research report on Monday, October 7th. Jefferies Financial Group dropped their price target 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. Fearnley Fonds raised shares of Frontline to a “strong-buy” rating in a research report on Friday, September 27th. Finally, Kepler Capital Markets lowered shares of Frontline from a “buy” rating to a “hold” rating and set a $15.83 price target for the company. in a research note on Thursday, December 12th. One investment analyst has rated the stock with a sell rating, two have given a hold rating, four have given a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $24.36.

Frontline Stock Performance

The company has a quick ratio of 1.43, a current ratio of 1.43 and a debt-to-equity ratio of 1.44. The company has a market cap of $3.52 billion, a PE ratio of 6.46 and a beta of 0.01. The business’s fifty day moving average is $16.65 and its 200-day moving average is $21.12.

Frontline (NYSE:FRO) last issued its quarterly earnings results on Wednesday, November 27th. The shipping company reported $0.34 earnings per share for the quarter, missing the consensus estimate 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 previous year, the company posted $0.36 EPS. As a group, research analysts predict that Frontline plc will post 1.83 EPS for the current fiscal year.

Frontline Cuts Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, December 31st. Shareholders of record on Wednesday, December 11th were given a dividend of $0.34 per share. This represents a $1.36 dividend on an annualized basis and a yield of 8.60%. The ex-dividend date was Wednesday, December 11th. Frontline’s dividend payout ratio (DPR) is 55.51%.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of FRO. Commonwealth Equity Services LLC increased its stake in 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 buying an additional 24,620 shares during the period. TD Asset Management Inc boosted its holdings in shares of Frontline by 9.7% in the 2nd quarter. TD Asset Management Inc now owns 9,840 shares of the shipping company’s stock valued at $258,000 after buying an additional 871 shares in the last quarter. Ashton Thomas Private Wealth LLC bought a new stake in shares of Frontline in the 2nd quarter valued at about $31,000. DekaBank Deutsche Girozentrale boosted its holdings in shares of Frontline by 6.3% in the 2nd quarter. DekaBank Deutsche Girozentrale now owns 116,988 shares of the shipping company’s stock valued at $3,118,000 after buying an additional 6,933 shares in the last quarter. Finally, Hsbc Holdings PLC boosted its holdings in shares of Frontline by 7.7% in the 2nd quarter. Hsbc Holdings PLC now owns 1,932,842 shares of the shipping company’s stock valued at $50,683,000 after buying an additional 138,011 shares in the last quarter. Institutional investors own 22.70% of the company’s stock.

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.