Frontline (NYSE:FRO) Shares Down 3.6% – Should You Sell?

Frontline PLC (NYSE:FRO)’s stock price was down 3.6% during trading on Wednesday . The stock traded as low as $34.03 and last traded at $34.1740. Approximately 1,198,756 shares traded hands during trading, a decline of 70% from the average daily volume of 4,031,582 shares. The stock had previously closed at $35.44.

Analysts Set New Price Targets

FRO has been the subject of a number of recent analyst reports. Weiss Ratings restated a “hold (c)” rating on shares of Frontline in a research report on Monday, December 29th. Piper Sandler downgraded Frontline to a “neutral” rating in a research report on Friday, February 27th. Dnb Carnegie cut Frontline from a “strong-buy” rating to a “hold” rating in a research report on Monday, March 2nd. Evercore reaffirmed an “outperform” rating and issued a $42.00 price target on shares of Frontline in a report on Friday, February 27th. Finally, BTIG Research lifted their price target on Frontline from $35.00 to $42.00 and gave the company a “buy” rating in a research report on Friday, February 27th. Four investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $31.62.

Frontline Price Performance

The stock has a market capitalization of $7.56 billion and a P/E ratio of 19.96. The company has a debt-to-equity ratio of 1.09, a quick ratio of 1.37 and a current ratio of 1.43. The firm has a 50-day moving average price of $31.27 and a 200 day moving average price of $26.12.

Frontline (NYSE:FRO) last issued its earnings results on Friday, February 27th. The shipping company reported $1.03 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.13 by ($0.10). Frontline had a return on equity of 16.51% and a net margin of 19.31%.The firm had revenue of $424.51 million during the quarter, compared to analysts’ expectations of $456.90 million. During the same period in the prior year, the company earned $0.20 EPS. The firm’s quarterly revenue was up 46.7% compared to the same quarter last year. On average, analysts expect that Frontline PLC will post 1.78 EPS for the current year.

Frontline Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, March 19th. Stockholders of record on Thursday, March 12th were paid a $1.03 dividend. This is a positive change from Frontline’s previous quarterly dividend of $0.19. The ex-dividend date of this dividend was Thursday, March 12th. This represents a $4.12 dividend on an annualized basis and a dividend yield of 12.1%. Frontline’s dividend payout ratio is currently 242.35%.

Institutional Trading of Frontline

Several institutional investors have recently added to or reduced their stakes in FRO. Vanguard Group Inc. increased its holdings in shares of Frontline by 2.9% in the third quarter. Vanguard Group Inc. now owns 5,840,353 shares of the shipping company’s stock worth $133,738,000 after buying an additional 164,776 shares during the period. Marshall Wace LLP increased its stake in Frontline by 155.1% in the 2nd quarter. Marshall Wace LLP now owns 1,692,537 shares of the shipping company’s stock worth $27,775,000 after purchasing an additional 1,029,034 shares during the period. Kiker Wealth Management LLC lifted its position in Frontline by 839.3% in the third quarter. Kiker Wealth Management LLC now owns 93,926 shares of the shipping company’s stock valued at $2,141,000 after purchasing an additional 83,926 shares during the last quarter. Citigroup Inc. boosted its stake in shares of Frontline by 185.8% during the third quarter. Citigroup Inc. now owns 606,443 shares of the shipping company’s stock valued at $13,821,000 after purchasing an additional 394,226 shares during the period. Finally, SG Americas Securities LLC grew its holdings in shares of Frontline by 20.6% in the third quarter. SG Americas Securities LLC now owns 1,058,260 shares of the shipping company’s stock worth $24,118,000 after purchasing an additional 180,731 shares during the last quarter. 22.70% of the stock is currently owned by hedge funds and other institutional investors.

Frontline Company Profile

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.