Frontline (NYSE:FRO) Hits New 1-Year High – Should You Buy?

Frontline PLC (NYSE:FRO)’s share price reached a new 52-week high on Wednesday . The stock traded as high as $47.22 and last traded at $46.57, with a volume of 2336302 shares. The stock had previously closed at $46.12.

Analyst Upgrades and Downgrades

Several brokerages have commented on FRO. Danske downgraded shares of Frontline from a “hold” rating to a “sell” rating in a research note on Friday, August 21st. BTIG Research lifted their price target on shares of Frontline from $45.00 to $55.00 and gave the stock a “buy” rating in a research report on Wednesday, June 24th. Weiss Ratings upgraded shares of Frontline from a “buy (b-)” rating to a “buy (b)” rating in a research report on Friday, August 28th. Wall Street Zen upgraded shares of Frontline from a “buy” rating to a “strong-buy” rating in a research report on Saturday, August 29th. Finally, Nordea Equity Research downgraded Frontline to a “hold” rating in a research note on Monday, August 31st. 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. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $41.62.

Frontline Stock Up 1.0%

The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.87 and a current ratio of 1.87. The firm’s fifty day simple moving average is $40.29 and its 200 day simple moving average is $37.54. The stock has a market capitalization of $10.37 billion, a price-to-earnings ratio of 6.98 and a beta of 0.05.

Frontline (NYSE:FRO) last released its quarterly earnings results on Friday, August 28th. The shipping company reported $2.61 earnings per share for the quarter, missing the consensus estimate 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 during the quarter, compared to analyst estimates of $758.89 million. During the same quarter last year, the company earned $0.36 EPS. The firm’s quarterly revenue was up 96.5% compared to the same quarter last year.

Frontline Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, September 28th. Shareholders of record on Friday, September 18th will be issued a dividend of $2.61 per share. This is a boost from Frontline’s previous quarterly dividend of $1.55. The ex-dividend date is Friday, September 18th. This represents a $10.44 dividend on an annualized basis and a yield of 22.4%. Frontline’s dividend payout ratio is currently 92.95%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. University of Texas Texas AM Investment Management Co. bought a new position in shares of Frontline during the fourth quarter worth about $25,000. Fiduciary Financial Advisors acquired a new position in Frontline during the 2nd quarter worth approximately $28,000. Assetmark Inc. grew its stake 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 acquiring an additional 716 shares in the last quarter. Sunbelt Securities Inc. bought a new position in shares of Frontline during the 3rd quarter worth approximately $41,000. Finally, Parallel Advisors LLC raised its holdings in shares of 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 purchasing an additional 486 shares during the last quarter. 22.70% of the stock is owned by institutional investors and hedge funds.

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.