Frontline PLC (NYSE:FRO) Raises Dividend to $1.03 Per Share

Frontline PLC (NYSE:FRO) announced a quarterly dividend on Friday, February 27th. Stockholders of record on Thursday, March 12th will be given a dividend of 1.03 per share by the shipping company on Thursday, March 19th. This represents a c) dividend on an annualized basis and a dividend yield of 10.9%. The ex-dividend date of this dividend is Thursday, March 12th. This is a 442.1% increase from Frontline’s previous quarterly dividend of $0.19.

Frontline has raised its dividend payment by an average of 0.8%per year over the last three years. Frontline has a dividend payout ratio of 25.2% meaning its dividend is sufficiently covered by earnings. Analysts expect Frontline to earn $2.34 per share next year, which means the company should continue to be able to cover its $0.76 annual dividend with an expected future payout ratio of 32.5%.

Frontline Stock Performance

Shares of Frontline stock traded up $0.63 during trading on Friday, hitting $37.91. 6,898,306 shares of the company’s stock were exchanged, compared to its average volume of 3,056,765. The stock has a market capitalization of $8.44 billion, a price-to-earnings ratio of 38.68 and a beta of 0.07. The business has a 50-day simple moving average of $27.38 and a 200-day simple moving average of $24.40. Frontline has a 52-week low of $12.40 and a 52-week high of $37.97. The company has a debt-to-equity ratio of 1.27, a quick ratio of 1.37 and a current ratio of 1.37.

Frontline (NYSE:FRO) last announced its quarterly earnings results on Friday, February 27th. The shipping company reported $1.03 earnings per share for the quarter, missing the consensus estimate of $1.13 by ($0.10). The company had revenue of $424.51 million for the quarter, compared to analyst estimates of $456.90 million. Frontline had a return on equity of 8.89% and a net margin of 12.23%.Frontline’s revenue for the quarter was up 46.7% on a year-over-year basis. During the same period in the prior year, the business posted $0.20 earnings per share. On average, research analysts forecast that Frontline will post 1.78 EPS for the current year.

Institutional Investors Weigh In On Frontline

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Royal Bank of Canada raised its position in Frontline by 32.3% during the first quarter. Royal Bank of Canada now owns 26,342 shares of the shipping company’s stock worth $392,000 after acquiring an additional 6,424 shares during the period. Millennium Management LLC acquired a new position in shares of Frontline during the 1st quarter worth about $7,587,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in Frontline by 12.4% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 185,226 shares of the shipping company’s stock valued at $2,751,000 after buying an additional 20,370 shares in the last quarter. Y Intercept Hong Kong Ltd acquired a new stake in Frontline in the 2nd quarter worth about $2,144,000. Finally, Bank of Montreal Can boosted its holdings in Frontline by 8.5% in the 2nd quarter. Bank of Montreal Can now owns 75,815 shares of the shipping company’s stock worth $1,244,000 after buying an additional 5,916 shares during the last quarter. Hedge funds and other institutional investors own 22.70% of the company’s stock.

About Frontline

Frontline Ltd. (NYSE:FRO) is a leading global shipping company specializing in the seaborne transportation of crude oil and petroleum products. The company’s core business activities encompass the ownership and operation of very large crude carriers (VLCCs), Suezmax tankers and Aframax vessels. Through long-term charters, spot market operations and time charters, Frontline provides flexible shipping solutions that cater to a diverse set of energy producers, refiners and trading houses worldwide.

Frontline’s fleet is geared toward high-capacity, ocean-going tankers capable of carrying large volumes of crude oil over intercontinental distances.