Frontline (NYSE:FRO) Sets New 1-Year High – Still a Buy?

Frontline PLC (NYSE:FRO)’s share price reached a new 52-week high on Monday . The stock traded as high as $41.59 and last traded at $41.5850, with a volume of 2103817 shares changing hands. The stock had previously closed at $40.93.

Analyst Upgrades and Downgrades

FRO has been the topic of a number of research reports. Dnb Carnegie downgraded Frontline from a “strong-buy” rating to a “hold” rating in a research note on Monday, March 2nd. Piper Sandler downgraded Frontline to a “neutral” rating in a report on Friday, February 27th. Weiss Ratings upgraded shares of Frontline from a “hold (c+)” rating to a “buy (b)” rating in a research report on Friday, May 22nd. Evercore lowered shares of Frontline from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, April 21st. Finally, BTIG Research lifted their target price on shares of Frontline from $42.00 to $45.00 and gave the company a “buy” rating in a report on Wednesday, April 22nd. Four analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of $39.12.

Frontline Stock Performance

The company has a market cap of $9.30 billion, a PE ratio of 10.30 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 stock’s 50-day simple moving average is $36.68 and its 200 day simple moving average is $31.59.

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

Frontline Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 23rd. Shareholders of record on Friday, June 12th will be issued a $1.55 dividend. The ex-dividend date of this dividend is Friday, June 12th. This represents a $6.20 dividend on an annualized basis and a yield of 14.8%. This is a boost from Frontline’s previous quarterly dividend of $1.03. Frontline’s dividend payout ratio is presently 152.71%.

Hedge Funds Weigh In On Frontline

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. University of Texas Texas AM Investment Management Co. acquired a new stake in shares of Frontline in the 4th quarter valued at approximately $25,000. Assetmark Inc. grew its holdings in Frontline by 278.6% during the first quarter. Assetmark Inc. now owns 973 shares of the shipping company’s stock worth $34,000 after acquiring an additional 716 shares during the period. Sunbelt Securities Inc. acquired a new position in Frontline during the third quarter worth $41,000. Parallel Advisors LLC raised its position in Frontline by 58.9% in the first quarter. Parallel Advisors LLC now owns 1,311 shares of the shipping company’s stock worth $46,000 after acquiring an additional 486 shares in the last quarter. Finally, NFSG Corp lifted its holdings in Frontline by 50.0% in the first quarter. NFSG Corp now owns 1,500 shares of the shipping company’s stock valued at $52,000 after acquiring an additional 500 shares during the period. Institutional investors and hedge funds own 22.70% of the company’s stock.

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.