Frontline (NYSE:FRO) Shares Gap Up – Here’s Why

Frontline plc (NYSE:FRO) shares gapped up prior to trading on Wednesday . The stock had previously closed at $15.81, but opened at $16.50. Frontline shares last traded at $16.62, with a volume of 602,128 shares.

Wall Street Analysts Forecast Growth

Several analysts have recently commented on FRO shares. Kepler Capital Markets cut Frontline from a “buy” rating to a “hold” rating and set a $15.83 target price for the company. in a research report on Thursday, December 12th. Jefferies Financial Group lowered their price objective on shares of Frontline from $26.00 to $20.00 and set a “buy” rating on the stock in a research report on Tuesday, December 17th. One analyst has rated the stock with a sell rating, one has given a hold rating, three have issued a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, Frontline presently has a consensus rating of “Moderate Buy” and a consensus target price of $24.46.

Frontline Stock Performance

The company has a market cap of $3.73 billion, a P/E ratio of 6.81 and a beta of -0.04. The firm has a 50 day moving average price of $16.83 and a 200-day moving average price of $18.46. The company has a debt-to-equity ratio of 1.44, a quick ratio of 1.43 and a current ratio of 1.43.

Frontline (NYSE:FRO) last announced its earnings results on Friday, February 28th. The shipping company reported $0.20 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.20. The firm had revenue of $425.60 million during the quarter, compared to analysts’ expectations of $273.16 million. Frontline had a return on equity of 19.25% and a net margin of 25.64%. The company’s revenue was up 2.6% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.46 earnings per share. On average, research analysts predict that Frontline plc will post 1.78 EPS for the current year.

Frontline Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, March 31st. Shareholders of record on Friday, March 14th will be issued a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a yield of 4.78%. The ex-dividend date of this dividend is Friday, March 14th. Frontline’s dividend payout ratio (DPR) is 36.04%.

Institutional Trading of Frontline

Several hedge funds have recently added to or reduced their stakes in FRO. Jones Financial Companies Lllp bought a new stake in Frontline during the 4th quarter valued at approximately $31,000. Golden State Wealth Management LLC bought a new stake in shares of Frontline in the fourth quarter valued at approximately $84,000. National Bank of Canada FI lifted its stake in shares of Frontline by 331.8% in the fourth quarter. National Bank of Canada FI now owns 6,166 shares of the shipping company’s stock valued at $87,000 after buying an additional 4,738 shares during the period. Blue Trust Inc. lifted its position in Frontline by 84.4% in the fourth quarter. Blue Trust Inc. now owns 8,921 shares of the shipping company’s stock worth $127,000 after purchasing an additional 4,084 shares during the period. Finally, Nexpoint Asset Management L.P. bought a new position in Frontline in the fourth quarter worth $159,000. Institutional investors own 22.70% of the company’s stock.

About Frontline

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.