Frontline (NYSE:FRO) Shares Down 7.1% – What’s Next?

Frontline PLC (NYSE:FRO) was down 7.1% on Monday. The stock traded as low as $52.83 and last traded at $52.8790. 2,161,801 shares were traded during mid-day trading, a decline of 36% from the average session volume of 3,398,201 shares. The stock had previously closed at $56.90.

Wall Street Analyst Weigh In

Several research analysts recently commented on the company. Evercore set a $53.00 price target on Frontline in a research report on Tuesday, October 27th. Weiss Ratings upgraded Frontline from a “buy (b)” rating to a “buy (b+)” rating in a research note on Thursday, October 8th. BTIG Research increased their price objective on Frontline from $55.00 to $70.00 and gave the company a “buy” rating in a report on Friday, September 18th. Nordea Equity Research downgraded shares of Frontline to a “hold” rating in a report on Monday, August 31st. Finally, Wall Street Zen upgraded shares of Frontline from a “buy” rating to a “strong-buy” rating in a research note on Saturday, August 29th. Four equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $48.12.

Frontline Trading Down 7.5%

The company has a market capitalization of $11.72 billion, a price-to-earnings ratio of 7.89 and a beta of 0.15. The company has a debt-to-equity ratio of 0.69, a current ratio of 1.87 and a quick ratio of 1.87. The business’s 50-day moving average price is $50.31 and its two-hundred day moving average price is $39.10.

Frontline (NYSE:FRO) last released its earnings results on Friday, August 28th. The shipping company reported $2.61 earnings per share for the quarter, missing analysts’ consensus estimates of $2.74 by ($0.13). Frontline had a net margin of 49.47% and a return on equity of 44.24%. The company had revenue of $943.30 million for the quarter, compared to the consensus estimate of $758.89 million. During the same quarter in the previous year, the company posted $0.36 earnings per share. The business’s revenue was up 96.5% compared to the same quarter last year.

Frontline Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, September 28th. Shareholders of record on Friday, September 18th were paid a dividend of $2.61 per share. The ex-dividend date was Friday, September 18th. This is a positive change from Frontline’s previous quarterly dividend of $1.55. This represents a $10.44 dividend on an annualized basis and a yield of 19.8%. Frontline’s dividend payout ratio is currently 156.52%.

Hedge Funds Weigh In On Frontline

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Reyes Financial Architecture Inc. acquired a new stake in shares of Frontline during the 3rd quarter worth approximately $25,000. Fiduciary Financial Advisors acquired a new position in shares of Frontline during the 2nd quarter worth $28,000. Assetmark Inc. lifted its position in shares of Frontline by 278.6% during the 1st quarter. Assetmark Inc. now owns 973 shares of the shipping company’s stock worth $34,000 after buying an additional 716 shares during the last quarter. Parallel Advisors LLC boosted its stake in Frontline by 58.9% in the first quarter. Parallel Advisors LLC now owns 1,311 shares of the shipping company’s stock valued at $46,000 after buying an additional 486 shares in the last quarter. Finally, Global Retirement Partners LLC acquired a new stake in Frontline in the second quarter valued at about $48,000. 22.70% of the stock is currently owned by institutional investors and hedge funds.

About Frontline

Frontline plc is a maritime shipping company that owns and operates tankers used to transport crude oil and refined petroleum products worldwide. The company’s fleet includes very large crude carriers (VLCCs), Suezmax tankers, and Aframax and Long Range 2 (LR2) vessels, serving international energy markets.

Frontline’s vessels are employed through a combination of voyage charters, time charters and pool arrangements. Its operations connect major oil-producing regions with refineries and consuming markets across the Atlantic, Pacific and other global trade routes.

Founded in 1985, Frontline is incorporated in Bermuda and has corporate operations based in Limassol, Cyprus.