Frontier Group (NASDAQ:ULCC) Stock Jumps 9.9% – Still a Buy?

Frontier Group Holdings, Inc. (NASDAQ:ULCC) shares traded up 9.9% during trading on Tuesday. The company traded as high as $4.88 and last traded at $5.0670. 458,117 shares were traded during mid-day trading, a decline of 89% from the average session volume of 4,159,499 shares. The stock had previously closed at $4.61.

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on ULCC. Citigroup upped their target price on Frontier Group from $5.00 to $9.00 and gave the company a “neutral” rating in a report on Friday, June 26th. Zacks Research lowered Frontier Group from a “strong-buy” rating to a “hold” rating in a report on Thursday, August 27th. Weiss Ratings downgraded shares of Frontier Group from a “sell (d)” rating to a “sell (d-)” rating in a research report on Thursday, July 30th. Susquehanna reduced their price objective on shares of Frontier Group from $7.00 to $6.00 and set a “neutral” rating for the company in a research note on Wednesday, October 7th. Finally, Barclays lowered their target price on shares of Frontier Group from $7.00 to $5.00 and set an “underweight” rating on the stock in a research report on Friday, September 11th. Six investment analysts have rated the stock with a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat, Frontier Group currently has a consensus rating of “Reduce” and a consensus target price of $6.29.

Frontier Group Stock Performance

The firm has a market capitalization of $1.16 billion, a price-to-earnings ratio of -3.00 and a beta of 2.64. The firm’s 50-day moving average price is $5.80 and its two-hundred day moving average price is $5.80. The company has a debt-to-equity ratio of 2.77, a quick ratio of 0.54 and a current ratio of 0.58.

Frontier Group (NASDAQ:ULCC) last released its quarterly earnings data on Wednesday, July 29th. The company reported ($0.10) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.47) by $0.37. Frontier Group had a negative return on equity of 35.54% and a negative net margin of 9.29%. The firm had revenue of $1.28 billion during the quarter, compared to analyst estimates of $1.22 billion. During the same period in the prior year, the company posted ($0.31) earnings per share. The business’s revenue for the quarter was up 37.7% compared to the same quarter last year. Frontier Group has set its Q4 2026 guidance at 0.000-0.200 EPS and its Q3 2026 guidance at -0.100-0.100 EPS. Sell-side analysts predict that Frontier Group Holdings, Inc. will post -0.47 earnings per share for the current year.

Insider Buying and Selling

In other Frontier Group news, CFO Mark Mitchell sold 125,000 shares of the stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $8.09, for a total value of $1,011,250.00. Following the transaction, the chief financial officer owned 53,785 shares of the company’s stock, valued at approximately $435,120.65. This represents a 69.92% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, SVP Steve Schuller sold 10,000 shares of the business’s stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $7.55, for a total transaction of $75,500.00. Following the transaction, the senior vice president owned 87,175 shares of the company’s stock, valued at approximately $658,171.25. This represents a 10.29% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 349,662 shares of company stock worth $2,786,452. 48.00% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Frontier Group

Several institutional investors and hedge funds have recently modified their holdings of the business. Sequoia Financial Advisors LLC bought a new stake in shares of Frontier Group during the second quarter worth $116,000. Engineers Gate Manager LP raised its stake in Frontier Group by 21.0% in the second quarter. Engineers Gate Manager LP now owns 185,048 shares of the company’s stock valued at $1,464,000 after buying an additional 32,082 shares during the period. Integrated Wealth Concepts LLC acquired a new stake in Frontier Group during the 2nd quarter valued at $28,000. Squarepoint Ops LLC lifted its position in Frontier Group by 247.6% during the second quarter. Squarepoint Ops LLC now owns 266,000 shares of the company’s stock worth $2,104,000 after acquiring an additional 189,469 shares during the last quarter. Finally, AXQ Capital LP acquired a new stake in Frontier Group during the 2nd quarter worth approximately $470,000.

About Frontier Group

Frontier Group Holdings, Inc is the parent company of Frontier Airlines, an ultra-low-cost passenger airline headquartered in Denver, Colorado. The company operates a low-fare, point-to-point air transportation business, primarily serving leisure travelers and price-conscious customers.

Frontier Airlines offers scheduled flights to destinations across the United States, as well as selected locations in the Caribbean and Latin America. Its business model emphasizes low base fares with additional charges for optional services such as checked baggage, seat selection, priority boarding and other travel-related products.

Frontier Airlines traces its roots to 1994 and has expanded its network through a fleet focused largely on Airbus narrow-body aircraft.