Frontier Group Target of Unusually High Options Trading (NASDAQ:ULCC)

Frontier Group Holdings, Inc. (NASDAQ:ULCC) saw unusually large options trading activity on Wednesday. Investors purchased 5,982 call options on the stock. This represents an increase of 254% compared to the typical volume of 1,691 call options.

Insiders Place Their Bets

In other Frontier Group news, SVP Steve Schuller sold 5,000 shares of the stock in a transaction dated Wednesday, December 10th. The stock was sold at an average price of $6.00, for a total value of $30,000.00. Following the completion of the transaction, the senior vice president directly owned 77,312 shares in the company, valued at approximately $463,872. This trade represents a 6.07% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Barry Biffle sold 100,000 shares of the business’s stock in a transaction dated Monday, December 8th. The stock was sold at an average price of $5.54, for a total value of $554,000.00. Following the sale, the chief executive officer owned 731,836 shares in the company, valued at approximately $4,054,371.44. This trade represents a 12.02% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 305,000 shares of company stock valued at $1,670,444 over the last quarter. 48.00% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Frontier Group

A number of large investors have recently made changes to their positions in ULCC. Caitong International Asset Management Co. Ltd purchased a new stake in Frontier Group during the 3rd quarter worth about $27,000. Ameritas Investment Partners Inc. increased its position in shares of Frontier Group by 130.0% during the second quarter. Ameritas Investment Partners Inc. now owns 8,643 shares of the company’s stock valued at $31,000 after buying an additional 4,885 shares during the period. CWM LLC lifted its holdings in shares of Frontier Group by 165.0% in the second quarter. CWM LLC now owns 10,042 shares of the company’s stock worth $36,000 after buying an additional 6,253 shares in the last quarter. Baron Wealth Management LLC purchased a new stake in shares of Frontier Group in the second quarter worth about $37,000. Finally, MQS Management LLC bought a new position in shares of Frontier Group in the second quarter valued at approximately $37,000.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on the stock. Morgan Stanley reduced their target price on shares of Frontier Group from $9.00 to $8.00 and set an “equal weight” rating on the stock in a report on Monday, December 8th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Frontier Group in a report on Monday. Seaport Res Ptn raised shares of Frontier Group to a “hold” rating in a research note on Thursday, September 25th. Citigroup began coverage on Frontier Group in a report on Thursday, December 4th. They issued a “neutral” rating and a $5.00 price objective for the company. Finally, UBS Group reaffirmed a “neutral” rating and set a $6.00 target price (up from $4.00) on shares of Frontier Group in a report on Friday, December 12th. Two investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $6.25.

Frontier Group Stock Performance

NASDAQ ULCC opened at $4.98 on Friday. The firm has a market cap of $1.14 billion, a P/E ratio of -8.16 and a beta of 2.55. The company has a quick ratio of 0.36, a current ratio of 0.40 and a debt-to-equity ratio of 0.79. The company’s 50 day moving average is $4.37 and its 200-day moving average is $4.35. Frontier Group has a 12-month low of $2.89 and a 12-month high of $10.26.

Frontier Group (NASDAQ:ULCC) last released its quarterly earnings data on Wednesday, November 5th. The company reported ($0.34) EPS for the quarter, hitting the consensus estimate of ($0.34). Frontier Group had a negative net margin of 3.65% and a negative return on equity of 25.73%. The company had revenue of $886.00 million during the quarter, compared to the consensus estimate of $900.07 million. During the same period last year, the firm earned ($0.05) EPS. Frontier Group’s revenue for the quarter was down 5.2% on a year-over-year basis. Frontier Group has set its Q4 2025 guidance at 0.040-0.200 EPS. Sell-side analysts predict that Frontier Group will post 0.91 earnings per share for the current year.

About Frontier Group

Frontier Group Holdings, Inc, provides low-fare passenger airline services to leisure travelers in the United States and Latin America. The company sells its products through direct distribution channels, including its website, mobile app, and contact centers. As of December 31, 2023, it had a fleet of 136 Airbus single-aisle aircrafts.