Frontier Group (NASDAQ:ULCC) Trading 8% Higher – Still a Buy?

Frontier Group Holdings, Inc. (NASDAQ:ULCC) rose 8% during trading on Thursday . The stock traded as high as $7.01 and last traded at $7.1690. 344,812 shares changed hands during trading, a decline of 93% from the average session volume of 4,835,290 shares. The stock had previously closed at $6.64.

Wall Street Analyst Weigh In

ULCC has been the subject of several recent research reports. Weiss Ratings reiterated a “sell (d)” rating on shares of Frontier Group in a research note on Tuesday, May 19th. UBS Group dropped their price target on shares of Frontier Group from $6.00 to $4.00 and set a “neutral” rating on the stock in a research note on Monday, March 16th. Susquehanna raised their price objective on shares of Frontier Group from $3.40 to $4.50 and gave the stock a “neutral” rating in a report on Wednesday, May 6th. Wall Street Zen lowered shares of Frontier Group from a “hold” rating to a “sell” rating in a research note on Saturday, June 13th. Finally, Barclays reiterated an “underweight” rating and issued a $4.00 price objective (down from $6.00) on shares of Frontier Group in a research note on Monday, March 2nd. Five research analysts have rated the stock with a Hold rating and three have given a Sell rating to the company. According to MarketBeat, Frontier Group presently has a consensus rating of “Reduce” and an average target price of $5.07.

Frontier Group Stock Performance

The stock has a market capitalization of $1.66 billion, a P/E ratio of -4.51 and a beta of 2.60. The company has a quick ratio of 0.44, a current ratio of 0.49 and a debt-to-equity ratio of 1.75. The company has a 50-day moving average price of $5.05 and a two-hundred day moving average price of $4.79.

Frontier Group (NASDAQ:ULCC) last released its quarterly earnings data on Tuesday, May 5th. The company reported ($0.30) EPS for the quarter, beating analysts’ consensus estimates of ($0.37) by $0.07. The company had revenue of $1.06 billion during the quarter, compared to analyst estimates of $1.04 billion. Frontier Group had a negative net margin of 9.62% and a negative return on equity of 39.20%. Frontier Group’s revenue was up 16.8% compared to the same quarter last year. During the same period last year, the business earned ($0.19) earnings per share. Frontier Group has set its Q2 2026 guidance at -0.600–0.45 EPS. Equities analysts expect that Frontier Group Holdings, Inc. will post -1.12 earnings per share for the current year.

Insider Activity

In other news, CAO Josh A. Wetzel sold 13,500 shares of the company’s stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $4.75, for a total value of $64,125.00. Following the transaction, the chief accounting officer owned 12,061 shares of the company’s stock, valued at approximately $57,289.75. This represents a 52.81% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, SVP Steve Schuller sold 10,000 shares of the stock in a transaction on Friday, June 5th. The stock was sold at an average price of $6.00, for a total value of $60,000.00. Following the completion of the sale, the senior vice president owned 97,175 shares in the company, valued at $583,050. This trade represents a 9.33% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 111,670 shares of company stock valued at $603,756 in the last quarter. 48.00% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Frontier Group

A number of institutional investors have recently added to or reduced their stakes in ULCC. AQR Capital Management LLC raised its holdings in shares of Frontier Group by 46.0% in the 1st quarter. AQR Capital Management LLC now owns 18,777 shares of the company’s stock valued at $81,000 after acquiring an additional 5,913 shares in the last quarter. Goldman Sachs Group Inc. grew its holdings in shares of Frontier Group by 33.0% during the first quarter. Goldman Sachs Group Inc. now owns 1,013,456 shares of the company’s stock worth $4,398,000 after purchasing an additional 251,509 shares in the last quarter. Rhumbline Advisers increased its position in shares of Frontier Group by 7.1% in the second quarter. Rhumbline Advisers now owns 117,984 shares of the company’s stock worth $428,000 after purchasing an additional 7,791 shares during the last quarter. Invesco Ltd. raised its stake in Frontier Group by 35.1% in the second quarter. Invesco Ltd. now owns 108,806 shares of the company’s stock valued at $395,000 after purchasing an additional 28,256 shares in the last quarter. Finally, First Trust Advisors LP purchased a new stake in Frontier Group in the second quarter valued at approximately $477,000.

Frontier Group Company Profile

Frontier Group, trading on Nasdaq under the ticker ULCC, is the holding company for Frontier Airlines, an ultra-low-cost carrier based in Denver, Colorado. The company’s core business centers on providing no-frills air travel across a point-to-point network while generating ancillary revenue from add-on services such as baggage fees, seat selection, priority boarding and in-flight refreshments. This fare-plus-a-la-carte model allows Frontier to offer competitive base fares and maintain low operating costs.

Founded in February 1994 by industry veterans Andrew Levy and Russell Beardsmore, Frontier Airlines commenced operations with a small fleet of MD-80 aircraft.