Frontline (NYSE:FRO) Shares Down 5.1% – Here’s What Happened

Frontline plc (NYSE:FRO)’s stock price traded down 5.1% during mid-day trading on Tuesday . The company traded as low as $16.42 and last traded at $16.47. 3,574,344 shares changed hands during trading, a decline of 29% from the average session volume of 5,039,623 shares. The stock had previously closed at $17.36.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on FRO. Jefferies Financial Group dropped their price objective on Frontline from $26.00 to $20.00 and set a “buy” rating for the company in a report on Tuesday, December 17th. BTIG Research raised Frontline from a “neutral” rating to a “buy” rating and set a $30.00 price target for the company in a research note on Monday, October 7th. Kepler Capital Markets downgraded shares of Frontline from a “buy” rating to a “hold” rating and set a $15.83 price objective on the stock. in a research report on Thursday, December 12th. Finally, Fearnley Fonds raised shares of Frontline to a “strong-buy” rating in a research report on Friday, September 27th. One research analyst has rated the stock with a sell rating, two have assigned a hold rating, three have assigned a buy rating and one has issued a strong buy rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $24.03.

Frontline Stock Performance

The company has a 50 day moving average of $16.26 and a two-hundred day moving average of $20.53. The company has a debt-to-equity ratio of 1.44, a current ratio of 1.43 and a quick ratio of 1.43. The company has a market capitalization of $3.66 billion, a PE ratio of 6.71 and a beta of 0.01.

Frontline (NYSE:FRO) last released its earnings results on Wednesday, November 27th. The shipping company reported $0.34 earnings per share for the quarter, missing analysts’ consensus estimates of $0.39 by ($0.05). Frontline had a return on equity of 19.25% and a net margin of 25.64%. During the same quarter in the previous year, the company earned $0.36 earnings per share. As a group, equities research analysts predict that Frontline plc will post 1.83 earnings per share for the current year.

Frontline Cuts Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, December 31st. Shareholders of record on Wednesday, December 11th were paid a dividend of $0.34 per share. This represents a $1.36 dividend on an annualized basis and a dividend yield of 8.28%. The ex-dividend date of this dividend was Wednesday, December 11th. Frontline’s dividend payout ratio is 55.51%.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the stock. International Assets Investment Management LLC purchased a new stake in shares of Frontline during the third quarter valued at approximately $783,000. Charles Schwab Investment Management Inc. boosted its stake in Frontline by 102.6% during the 3rd quarter. Charles Schwab Investment Management Inc. now owns 43,494 shares of the shipping company’s stock valued at $994,000 after purchasing an additional 22,022 shares during the last quarter. Range Financial Group LLC purchased a new stake in Frontline during the 4th quarter valued at $579,000. Harbour Capital Advisors LLC bought a new stake in shares of Frontline in the 4th quarter worth $439,000. Finally, FCG Investment Co purchased a new position in shares of Frontline in the third quarter worth $823,000. Hedge funds and other institutional investors own 22.70% of the company’s stock.

Frontline Company Profile

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.