Frontier Group (NASDAQ:ULCC) Shares Gap Up Following Strong Earnings

Frontier Group Holdings, Inc. (NASDAQ:ULCC)’s stock price gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $5.96, but opened at $6.46. Frontier Group shares last traded at $6.0150, with a volume of 859,519 shares.

The company reported $0.23 earnings per share for the quarter, beating the consensus estimate of $0.10 by $0.13. The company had revenue of $997.00 million for the quarter, compared to analyst estimates of $971.35 million. Frontier Group had a negative return on equity of 27.22% and a negative net margin of 3.68%.Frontier Group’s quarterly revenue was down .5% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.23 EPS. Frontier Group has set its FY 2026 guidance at -0.400-0.500 EPS and its Q1 2026 guidance at -0.440–0.260 EPS.

More Frontier Group News

Here are the key news stories impacting Frontier Group this week:

• Positive Sentiment: Q4 beat and healthy cash position — Frontier posted $0.23 EPS and revenue of $997M, topping estimates, and reported $874M of year‑end liquidity and $53M net income; this supports near‑term solvency and shows cost control execution. Read More.
• Positive Sentiment: Fleet optimization deal with AerCap could lower lease costs and accelerate rightsizing — non‑binding agreement for early return of 24 A320neo aircraft and potential sale‑leasebacks aims to reshape capacity and cut costs. Read More.
• Positive Sentiment: Management projects deep cost cuts and $200M+ of savings through 2027 with a path to potential 2026 profit if cuts stick — this underpins a turnaround thesis if execution succeeds. Read More.
• Neutral Sentiment: Q4 earnings call/transcripts released — useful for detail on fleet, RASM/CASM and timing of cost saves but contain operational nuance rather than immediate market movers. Read More.
• Neutral Sentiment: Short‑interest reports in the feed show zero/NaN figures (likely a reporting anomaly) and do not indicate meaningful new short pressure at this time.
• Negative Sentiment: Forward guidance disappointed — Frontier guided FY 2026 EPS to -$0.40 to -$0.50 and Q1 to -$0.44 to -$0.26, well below consensus, shifting the story from a beat to a tough near‑term outlook. Read More.
• Negative Sentiment: Analyst reaction and insider activity — Deutsche Bank cut ULCC to Hold and reports of insider selling and a gap down have added downward pressure on sentiment. Read More. Read More.

Analyst Ratings Changes

Several analysts have issued reports on the stock. Bank of America reissued an “underperform” rating and issued a $4.00 price objective (down previously from $5.00) on shares of Frontier Group in a research note on Tuesday, January 6th. Citigroup initiated coverage on Frontier Group in a report on Thursday, December 4th. They issued a “neutral” rating and a $5.00 price target on the stock. Weiss Ratings reissued a “sell (d-)” rating on shares of Frontier Group in a research note on Monday, December 29th. Morgan Stanley dropped their price objective on Frontier Group from $9.00 to $8.00 and set an “equal weight” rating for the company in a report on Monday, December 8th. Finally, Deutsche Bank Aktiengesellschaft lowered Frontier Group from a “buy” rating to a “hold” rating and set a $6.00 target price on the stock. in a research note on Tuesday. One analyst has rated the stock with a Buy rating, six have given a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Reduce” and a consensus price target of $6.13.

Insider Buying and Selling

In other news, SVP Steve Schuller sold 5,000 shares of the stock in a transaction on Friday, February 6th. The stock was sold at an average price of $6.00, for a total transaction of $30,000.00. Following the transaction, the senior vice president owned 94,926 shares of the company’s stock, valued at approximately $569,556. This represents a 5.00% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Barry Biffle sold 82,627 shares of Frontier Group stock in a transaction dated Thursday, December 11th. The shares were sold at an average price of $5.78, for a total value of $477,584.06. Following the completion of the sale, the chief executive officer owned 631,836 shares of the company’s stock, valued at $3,652,012.08. The trade was a 11.56% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 310,000 shares of company stock valued at $1,700,444 in the last quarter. 48.00% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in ULCC. Caitong International Asset Management Co. Ltd bought a new stake in shares of Frontier Group in the 3rd quarter valued at about $27,000. Ameritas Investment Partners Inc. increased its holdings in 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 raised its stake in 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. MQS Management LLC bought a new position in Frontier Group in the second quarter worth approximately $37,000. Finally, Brooklyn Investment Group lifted its holdings in Frontier Group by 490.7% during the third quarter. Brooklyn Investment Group now owns 10,928 shares of the company’s stock worth $48,000 after buying an additional 9,078 shares during the period.

Frontier Group Price Performance

The firm has a 50-day simple moving average of $5.19 and a 200-day simple moving average of $4.68. The firm has a market cap of $1.20 billion, a P/E ratio of -8.59 and a beta of 2.55. The company has a current ratio of 0.40, a quick ratio of 0.36 and a debt-to-equity ratio of 0.79.

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.