Stock Traders Purchase Large Volume of Frontline Call Options (NYSE:FRO)

Frontline plc (NYSE:FRO) saw unusually large options trading activity on Tuesday. Traders purchased 15,687 call options on the company. This represents an increase of approximately 323% compared to the average daily volume of 3,705 call options.

Frontline Price Performance

Shares of Frontline stock traded up $1.32 during midday trading on Tuesday, hitting $18.87. 3,837,422 shares of the company traded hands, compared to its average volume of 4,145,709. The stock has a market cap of $4.20 billion and a price-to-earnings ratio of 7.71. 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’s fifty day moving average price is $15.69 and its 200-day moving average price is $20.05. Frontline has a 12 month low of $13.17 and a 12 month high of $29.39.

Frontline (NYSE:FRO) last posted 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 in the prior year, the business earned $0.36 EPS. As a group, sell-side analysts forecast that Frontline will post 1.78 earnings per share for the current year.

Frontline Cuts Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, December 31st. Shareholders of record on Wednesday, December 11th were issued a dividend of $0.34 per share. This represents a $1.36 dividend on an annualized basis and a yield of 7.21%. The ex-dividend date of this dividend was Wednesday, December 11th. Frontline’s payout ratio is 55.51%.

Wall Street Analyst Weigh In

Several analysts have weighed in on the stock. Jefferies Financial Group dropped their price objective on shares of Frontline from $26.00 to $20.00 and set a “buy” rating for the company in a research note on Tuesday, December 17th. BTIG Research raised shares of Frontline from a “neutral” rating to a “buy” rating and set a $30.00 target price on the stock in a report on Monday, October 7th. Finally, Kepler Capital Markets lowered shares of Frontline from a “buy” rating to a “hold” rating and set a $15.83 target price on the stock. in a report on Thursday, December 12th. One equities research analyst has rated the stock with a sell rating, two have assigned a hold rating, three have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. According to data from MarketBeat.com, Frontline has a consensus rating of “Moderate Buy” and an average price target of $24.03.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. M&G PLC lifted its position in shares of Frontline by 27.2% in the 3rd quarter. M&G PLC now owns 1,110,763 shares of the shipping company’s stock worth $25,164,000 after purchasing an additional 237,446 shares during the period. Smead Capital Management Inc. lifted its position in shares of Frontline by 5.1% in the 3rd quarter. Smead Capital Management Inc. now owns 670,581 shares of the shipping company’s stock worth $15,188,000 after purchasing an additional 32,531 shares during the period. The Manufacturers Life Insurance Company lifted its position in shares of Frontline by 1,326.2% in the 3rd quarter. The Manufacturers Life Insurance Company now owns 527,470 shares of the shipping company’s stock worth $12,053,000 after purchasing an additional 490,486 shares during the period. Teachers Retirement System of The State of Kentucky lifted its position in shares of Frontline by 3.8% in the 3rd quarter. Teachers Retirement System of The State of Kentucky now owns 143,510 shares of the shipping company’s stock worth $3,279,000 after purchasing an additional 5,200 shares during the period. Finally, Point72 Europe London LLP acquired a new position in shares of Frontline during the 3rd quarter valued at $3,219,000. Institutional investors and hedge funds own 22.70% of the company’s stock.

Frontline Company Profile

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.