Frontier Group (NASDAQ:ULCC) Shares Down 7.5% – Should You Sell?

Frontier Group Holdings, Inc. (NASDAQ:ULCC)’s stock price fell 7.5% during mid-day trading on Friday. The stock traded as low as $4.91 and last traded at $4.9050. Approximately 206,104 shares changed hands during trading, a decline of 95% from the average session volume of 4,146,924 shares. The stock had previously closed at $5.30.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on ULCC shares. Weiss Ratings cut Frontier Group from a “sell (d)” rating to a “sell (d-)” rating in a research report on Thursday, July 30th. Barclays lowered their price target on Frontier Group from $7.00 to $5.00 and set an “underweight” rating on the stock in a report on Friday, September 11th. Zacks Research cut Frontier Group from a “strong-buy” rating to a “hold” rating in a report on Thursday, August 27th. Citigroup lifted their price target on Frontier Group from $5.00 to $9.00 and gave the company a “neutral” rating in a research report on Friday, June 26th. Finally, Susquehanna cut their price objective on Frontier Group from $7.00 to $6.00 and set a “neutral” rating for the company in a report on Wednesday, October 7th. Six investment analysts have rated the stock with a Hold rating and three have given a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Reduce” and a consensus price target of $6.29.

Frontier Group Trading Down 7.5%

The company has a market capitalization of $1.13 billion, a PE ratio of -2.91 and a beta of 2.64. The company has a current ratio of 0.58, a quick ratio of 0.54 and a debt-to-equity ratio of 2.77. The stock has a fifty day moving average of $5.77 and a two-hundred day moving average of $5.81.

Frontier Group (NASDAQ:ULCC) last released its earnings results on Wednesday, July 29th. The company reported ($0.10) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.47) by $0.37. The company had revenue of $1.28 billion during the quarter, compared to the consensus estimate of $1.22 billion. Frontier Group had a negative return on equity of 35.54% and a negative net margin of 9.29%. Frontier Group’s quarterly revenue was up 37.7% compared to the same quarter last year. During the same quarter in the previous year, the company posted ($0.31) EPS. Frontier Group has set its Q4 2026 guidance at 0.000-0.200 EPS and its Q3 2026 guidance at -0.100-0.100 EPS. As a group, sell-side analysts anticipate that Frontier Group Holdings, Inc. will post -0.53 earnings per share for the current fiscal year.

Insider Activity at Frontier Group

In related news, CFO Mark Mitchell sold 125,000 shares of the stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $8.09, for a total transaction of $1,011,250.00. Following the transaction, the chief financial officer owned 53,785 shares of the company’s stock, valued at approximately $435,120.65. This trade represents a 69.92% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, SVP Steve Schuller sold 10,000 shares of Frontier Group stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $7.55, for a total transaction of $75,500.00. Following the completion of the transaction, the senior vice president owned 87,175 shares in the company, valued at approximately $658,171.25. The trade was a 10.29% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 349,662 shares of company stock worth $2,786,452 in the last 90 days. Corporate insiders own 48.00% of the company’s stock.

Hedge Funds Weigh In On Frontier Group

A number of large investors have recently bought and sold shares of ULCC. U S Global Investors Inc. boosted its stake in shares of Frontier Group by 6.1% during the third quarter. U S Global Investors Inc. now owns 5,216,198 shares of the company’s stock valued at $31,141,000 after purchasing an additional 301,543 shares during the period. Sequoia Financial Advisors LLC bought a new position in shares of Frontier Group in the second quarter worth approximately $116,000. Engineers Gate Manager LP grew its holdings in shares of Frontier Group by 21.0% in the second quarter. Engineers Gate Manager LP now owns 185,048 shares of the company’s stock worth $1,464,000 after purchasing an additional 32,082 shares during the last quarter. Integrated Wealth Concepts LLC purchased a new position in shares of Frontier Group in the second quarter worth $28,000. Finally, Squarepoint Ops LLC increased its stake in shares of Frontier Group by 247.6% in the second quarter. Squarepoint Ops LLC now owns 266,000 shares of the company’s stock worth $2,104,000 after buying an additional 189,469 shares during the period.

About Frontier Group

Frontier Group Holdings, Inc is the parent company of Frontier Airlines, an ultra-low-cost passenger airline headquartered in Denver, Colorado. The company operates a low-fare, point-to-point air transportation business, primarily serving leisure travelers and price-conscious customers.

Frontier Airlines offers scheduled flights to destinations across the United States, as well as selected locations in the Caribbean and Latin America. Its business model emphasizes low base fares with additional charges for optional services such as checked baggage, seat selection, priority boarding and other travel-related products.

Frontier Airlines traces its roots to 1994 and has expanded its network through a fleet focused largely on Airbus narrow-body aircraft.