Frontline (NYSE:FRO) Sets New 12-Month High – Should You Buy?

Frontline PLC (NYSE:FRO)’s share price hit a new 52-week high during mid-day trading on Thursday . The stock traded as high as $25.38 and last traded at $25.3830, with a volume of 374926 shares changing hands. The stock had previously closed at $24.88.

Analyst Ratings Changes

FRO has been the topic of a number of research analyst reports. Weiss Ratings upgraded Frontline from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Tuesday. Jefferies Financial Group reaffirmed a “buy” rating and set a $25.00 price target on shares of Frontline in a research report on Friday, August 29th. Wall Street Zen raised Frontline from a “sell” rating to a “hold” rating in a report on Friday, September 26th. BTIG Research raised their target price on shares of Frontline from $25.00 to $30.00 and gave the stock a “buy” rating in a research report on Wednesday, September 17th. Finally, Evercore ISI upped their price target on shares of Frontline from $22.00 to $26.00 and gave the company an “outperform” rating in a research report on Tuesday, October 28th. Four research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, Frontline has an average rating of “Moderate Buy” and an average target price of $23.37.

Frontline Stock Up 2.2%

The company has a market cap of $5.66 billion, a PE ratio of 23.65 and a beta of 0.14. The company has a debt-to-equity ratio of 1.38, a current ratio of 1.88 and a quick ratio of 1.88. The firm has a 50-day simple moving average of $23.33 and a two-hundred day simple moving average of $20.17.

Frontline (NYSE:FRO) last released its earnings results on Friday, August 29th. The shipping company reported $0.36 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.42 by ($0.06). Frontline had a return on equity of 10.27% and a net margin of 12.94%.The company had revenue of $282.95 million during the quarter, compared to analyst estimates of $328.71 million. During the same period in the prior year, the business posted $0.62 earnings per share. Frontline’s revenue was up 34.2% on a year-over-year basis. Research analysts anticipate that Frontline PLC will post 1.78 earnings per share for the current fiscal year.

Frontline Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, September 24th. Stockholders of record on Friday, September 12th were given a dividend of $0.36 per share. This represents a $1.44 dividend on an annualized basis and a dividend yield of 5.7%. The ex-dividend date of this dividend was Friday, September 12th. Frontline’s payout ratio is presently 134.58%.

Institutional Investors Weigh In On Frontline

A number of institutional investors have recently made changes to their positions in the company. Encompass Capital Advisors LLC bought a new position in Frontline during the first quarter worth $45,026,000. Marshall Wace LLP increased its stake in Frontline by 155.1% during the second quarter. Marshall Wace LLP now owns 1,692,537 shares of the shipping company’s stock valued at $27,775,000 after purchasing an additional 1,029,034 shares during the last quarter. Corigliano Investment Advisers LLC acquired a new stake in shares of Frontline during the first quarter worth $12,002,000. SG Americas Securities LLC lifted its position in shares of Frontline by 274.3% in the 2nd quarter. SG Americas Securities LLC now owns 877,529 shares of the shipping company’s stock worth $14,400,000 after buying an additional 643,100 shares during the last quarter. Finally, Bank of New York Mellon Corp boosted its holdings in shares of Frontline by 761.8% in the 1st quarter. Bank of New York Mellon Corp now owns 648,836 shares of the shipping company’s stock valued at $9,635,000 after buying an additional 573,544 shares during the period. 22.70% of the stock is currently owned by institutional investors.

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.