Frontline (NYSE:FRO) Trading Up 3.9% – Here’s Why

Frontline plc (NYSE:FRO)’s stock price shot up 3.9% during trading on Thursday . The company traded as high as $16.39 and last traded at $16.41. 477,858 shares changed hands during mid-day trading, a decline of 78% from the average session volume of 2,158,883 shares. The stock had previously closed at $15.79.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on the company. Kepler Capital Markets cut Frontline from a “buy” rating to a “hold” rating and set a $15.83 price objective for the company. in a research note on Thursday, December 12th. Jefferies Financial Group dropped their price target on shares of Frontline from $26.00 to $20.00 and set a “buy” rating on the stock in a research report on Tuesday, December 17th. One equities research analyst has rated the stock with a sell rating, one has issued a hold rating, three have issued a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $24.46.

Frontline Stock Performance

The stock has a market cap of $3.60 billion and a P/E ratio of 6.60. The company has a debt-to-equity ratio of 1.44, a current ratio of 1.43 and a quick ratio of 1.43. The company has a 50 day simple moving average of $16.55 and a 200-day simple moving average of $19.04.

Frontline (NYSE:FRO) last posted its quarterly earnings results on Friday, February 28th. The shipping company reported $0.20 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.20. The business had revenue of $425.60 million for the quarter, compared to analyst estimates of $273.16 million. Frontline had a return on equity of 19.25% and a net margin of 25.64%. Frontline’s revenue for the quarter was up 2.6% compared to the same quarter last year. During the same period last year, the company earned $0.46 EPS. On average, equities analysts expect that Frontline plc will post 1.78 earnings per share for the current fiscal year.

Frontline Cuts Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, March 31st. Stockholders of record on Friday, March 14th will be paid a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a dividend yield of 4.95%. The ex-dividend date is Friday, March 14th. Frontline’s payout ratio is 36.04%.

Hedge Funds Weigh In On Frontline

Several institutional investors and hedge funds have recently added to or reduced their stakes in FRO. International Assets Investment Management LLC purchased a new position in Frontline in the 3rd quarter worth approximately $783,000. Range Financial Group LLC bought a new position in Frontline in the 4th quarter worth $579,000. Charles Schwab Investment Management Inc. lifted its position in shares of Frontline by 102.6% during the 3rd quarter. Charles Schwab Investment Management Inc. now owns 43,494 shares of the shipping company’s stock valued at $994,000 after buying an additional 22,022 shares in the last quarter. Clear Harbor Asset Management LLC purchased a new stake in Frontline in the 4th quarter worth $214,000. Finally, Harbour Capital Advisors LLC bought a new stake in Frontline during the 4th quarter valued at approximately $439,000. Hedge funds and other 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.