Hsbc Holdings PLC Makes New $2.98 Million Investment in Frontline PLC $FRO

Hsbc Holdings PLC bought a new stake in Frontline PLC (NYSE:FRO) during the 2nd quarter, HoldingsChannel reports. The fund bought 85,295 shares of the shipping company’s stock, valued at approximately $2,985,000.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Canada Pension Plan Investment Board bought a new stake in shares of Frontline during the 2nd quarter worth approximately $22,849,000. Manatuck Hill Partners LLC bought a new position in Frontline in the second quarter valued at approximately $731,000. Legal & General Group Plc acquired a new position in Frontline during the second quarter valued at approximately $10,355,000. The Manufacturers Life Insurance Company acquired a new position in Frontline during the second quarter valued at approximately $12,581,000. Finally, Thomist Capital Management LP bought a new stake in Frontline during the second quarter worth $12,863,000. 22.70% of the stock is currently owned by institutional investors and hedge funds.

Frontline Stock Performance

Shares of Frontline stock opened at $44.02 on Friday. The company’s 50 day moving average price is $39.32 and its two-hundred day moving average price is $36.77. The firm has a market capitalization of $9.80 billion, a P/E ratio of 10.84 and a beta of 0.02. Frontline PLC has a fifty-two week low of $20.31 and a fifty-two week high of $45.29. The company has a debt-to-equity ratio of 0.83, a current ratio of 2.03 and a quick ratio of 2.03.

Frontline (NYSE:FRO) last announced its quarterly earnings results on Friday, August 28th. The shipping company reported $2.96 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.74 by $0.22. Frontline had a net margin of 36.70% and a return on equity of 27.80%. The company had revenue of $943.30 million during the quarter, compared to the consensus estimate of $758.85 million. During the same period in the prior year, the business earned $0.36 earnings per share. The company’s revenue for the quarter was up 96.5% compared to the same quarter last year.

Frontline Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, September 28th. Investors of record on Friday, September 18th will be given a dividend of $2.61 per share. The ex-dividend date is Friday, September 18th. This represents a $10.44 dividend on an annualized basis and a yield of 23.7%. This is an increase from Frontline’s previous quarterly dividend of $1.55. Frontline’s dividend payout ratio is presently 152.71%.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on the company. BTIG Research raised their target price on Frontline from $45.00 to $55.00 and gave the company a “buy” rating in a report on Wednesday, June 24th. Danske downgraded Frontline from a “hold” rating to a “sell” rating in a research report on Friday, August 21st. Pareto Securities downgraded Frontline from a “buy” rating to a “hold” rating and set a $39.46 price objective for the company. in a research report on Monday, May 25th. Wall Street Zen raised Frontline from a “buy” rating to a “strong-buy” rating in a research note on Saturday. Finally, Weiss Ratings cut Frontline from a “buy (b)” rating to a “buy (b-)” rating in a research report on Wednesday, August 12th. Four analysts have rated the stock with a Buy rating, four have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $41.62.

More Frontline News

Here are the key news stories impacting Frontline this week:

• Positive Sentiment: Record earnings beat expectations: Frontline reported second-quarter EPS of $2.96, exceeding the $2.74 consensus estimate. Revenue jumped 96.5% year over year to $943.3 million, versus expectations of $758.9 million, while net income reached a record $659 million. The results reflect exceptionally strong tanker rates, supported in part by geopolitical risks and a tight shipping market. Frontline’s Profit Hits Record $659 Million as Geopolitical Risks Impact Tanker Rates
• Positive Sentiment: Dividend increased substantially: Frontline declared a quarterly dividend of $2.61 per share, payable September 28 to shareholders of record September 18. The payout is 68.4% above the prior $1.55 dividend and represents an annualized payout of $10.44, with a stated yield of approximately 23.7%. Frontline Delivers Record Q2 Profit, Boosts Payouts as Tanker Market Stays Tight
• Positive Sentiment: Analyst sentiment improved: Wall Street Zen upgraded Frontline to “Strong Buy,” adding to the positive reaction to the earnings report. Frontline Upgraded to Strong-Buy at Wall Street Zen
• Neutral Sentiment: Options activity increased: Investors purchased 14,816 call options, 154% above average call volume. This indicates increased bullish speculation, but options activity alone does not guarantee sustained buying in the stock. Frontline Target of Unusually Large Options Trading

About Frontline

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.