Frontline (NYSE:FRO) Sees Strong Trading Volume – Should You Buy?

Frontline PLC (NYSE:FRO) shares saw an uptick in trading volume on Monday . 2,055,327 shares changed hands during trading, a decline of 42% from the previous session’s volume of 3,551,260 shares.The stock last traded at $38.5570 and had previously closed at $39.07.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on FRO. BTIG Research boosted their price target on shares of Frontline from $42.00 to $45.00 and gave the company a “buy” rating in a report on Wednesday, April 22nd. Pareto Securities downgraded shares of Frontline from a “buy” rating to a “hold” rating and set a $39.46 price target for the company. in a report on Monday, May 25th. Dnb Carnegie downgraded shares of Frontline from a “strong-buy” rating to a “hold” rating in a report on Monday, March 2nd. Evercore downgraded shares of Frontline from a “strong-buy” rating to a “hold” rating in a report on Tuesday, April 21st. Finally, Danske downgraded shares of Frontline to a “hold” rating in a report on Tuesday, May 26th. Four investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $39.12.

Frontline Stock Performance

The stock has a market cap of $8.74 billion, a price-to-earnings ratio of 9.67 and a beta of 0.02. The company has a debt-to-equity ratio of 0.83, a quick ratio of 2.03 and a current ratio of 2.03. The company’s 50 day simple moving average is $36.31 and its 200 day simple moving average is $31.01.

Frontline (NYSE:FRO) last released its earnings results on Friday, May 22nd. The shipping company reported $1.55 EPS for the quarter, missing the consensus estimate of $1.58 by ($0.03). The company had revenue of $714.24 million for the quarter, compared to analyst estimates of $579.59 million. Frontline had a net margin of 36.70% and a return on equity of 27.80%. The firm’s quarterly revenue was up 66.9% on a year-over-year basis. During the same period in the previous year, the business posted $0.18 EPS.

Frontline Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, June 23rd. Shareholders of record on Friday, June 12th will be paid a dividend of $1.55 per share. This represents a $6.20 annualized dividend and a yield of 15.8%. The ex-dividend date of this dividend is Friday, June 12th. This is a positive change from Frontline’s previous quarterly dividend of $1.03. Frontline’s dividend payout ratio is 152.71%.

Institutional Investors Weigh In On Frontline

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. increased its position in shares of Frontline by 2.9% in the third quarter. Vanguard Group Inc. now owns 5,840,353 shares of the shipping company’s stock worth $133,738,000 after acquiring an additional 164,776 shares in the last quarter. Citigroup Inc. raised its holdings in shares of Frontline by 185.8% during the third quarter. Citigroup Inc. now owns 606,443 shares of the shipping company’s stock worth $13,821,000 after acquiring an additional 394,226 shares in the last quarter. Melqart Asset Management UK Ltd purchased a new stake in shares of Frontline during the third quarter worth $437,000. UBS Group AG lifted its stake in Frontline by 18.2% in the fourth quarter. UBS Group AG now owns 1,411,265 shares of the shipping company’s stock valued at $30,794,000 after acquiring an additional 217,760 shares during the last quarter. Finally, Armor Advisors L.L.C. lifted its stake in Frontline by 10.5% in the third quarter. Armor Advisors L.L.C. now owns 210,332 shares of the shipping company’s stock valued at $4,793,000 after acquiring an additional 20,000 shares during the last quarter. 22.70% of the stock is currently owned by institutional investors.

Frontline Company Profile

Frontline Ltd. (NYSE:FRO) is a leading global shipping company specializing in the seaborne transportation of crude oil and petroleum products. The company’s core business activities encompass the ownership and operation of very large crude carriers (VLCCs), Suezmax tankers and Aframax vessels. Through long-term charters, spot market operations and time charters, Frontline provides flexible shipping solutions that cater to a diverse set of energy producers, refiners and trading houses worldwide.

Frontline’s fleet is geared toward high-capacity, ocean-going tankers capable of carrying large volumes of crude oil over intercontinental distances.