Frontier Group Holdings Inc (NASDAQ: ULCC)’s stock price has increased by 13.78 compared to its previous closing price of 7.11. However, the company has seen a 12.83% increase in its stock price over the last five trading sessions. seekingalpha.com reported 2025-01-05 that Frontier Group Holdings, the parent of Frontier Airlines, gets a buy rating, agreeing with the Seeking Alpha quant system today. The greatest weight was given to future macro-level airline travel demand growth in the US. Though not a dividend payer yet, this airline presents a modest debt risk and is growing new routes and adding newer, fuel-efficient aircraft.
Is It Worth Investing in Frontier Group Holdings Inc (NASDAQ: ULCC) Right Now?
ULCC has 36-month beta value of 2.33. Analysts have mixed views on the stock, with 1 analysts rating it as a “buy,” 1 as “overweight,” 9 as “hold,” and 0 as “sell.”
The public float for ULCC is 81.15M, and currently, short sellers hold a 18.43% ratio of that float. The average trading volume of ULCC on January 06, 2025 was 2.57M shares.
ULCC’s Market Performance
ULCC stock saw an increase of 12.83% in the past week, with a monthly gain of 34.61% and a quarterly increase of 39.24%. The volatility ratio for the week is 5.14%, and the volatility levels for the last 30 days are 6.36% for Frontier Group Holdings Inc (ULCC). The simple moving average for the last 20 days is 19.87% for ULCC stock, with a simple moving average of 47.73% for the last 200 days.
Analysts’ Opinion of ULCC
Many brokerage firms have already submitted their reports for ULCC stocks, with Deutsche Bank repeating the rating for ULCC by listing it as a “Buy.” The predicted price for ULCC in the upcoming period, according to Deutsche Bank is $8 based on the research report published on December 11, 2024 of the previous year 2024.
UBS, on the other hand, stated in their research note that they expect to see ULCC reach a price target of $6. The rating they have provided for ULCC stocks is “Neutral” according to the report published on November 26th, 2024.
Citigroup gave a rating of “Neutral” to ULCC, setting the target price at $7.15 in the report published on October 22nd of the previous year.
ULCC Trading at 26.55% from the 50-Day Moving Average
After a stumble in the market that brought ULCC to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -2.88% of loss for the given period.
Volatility was left at 6.36%, however, over the last 30 days, the volatility rate increased by 5.14%, as shares surge +36.42% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +18.10% upper at present.
During the last 5 trading sessions, ULCC rose by +12.83%, which changed the moving average for the period of 200-days by +12.05% in comparison to the 20-day moving average, which settled at $6.75. In addition, Frontier Group Holdings Inc saw 13.78% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at ULCC starting from Schuller Steve, who proposed sale 5,000 shares at the price of $7.17 back on Jan 02 ’25. After this action, Schuller Steve now owns shares of Frontier Group Holdings Inc, valued at $35,850 using the latest closing price.
Biffle Barry, the CEO of Frontier Group Holdings Inc, sale 160,000 shares at $6.88 during a trade that took place back on Dec 23 ’24, which means that Biffle Barry is holding 784,817 shares at $1,100,800 based on the most recent closing price.
Stock Fundamentals for ULCC
Current profitability levels for the company are sitting at:
- -0.02 for the present operating margin
- 0.08 for the gross margin
The net margin for Frontier Group Holdings Inc stands at -0.0. The total capital return value is set at -0.01. Equity return is now at value -1.10, with -0.11 for asset returns.
Based on Frontier Group Holdings Inc (ULCC), the company’s capital structure generated 0.46 points at debt to capital in total, while cash flow to debt ratio is standing at -0.48. The debt to equity ratio resting at 0.85. The interest coverage ratio of the stock is -5.55.
Currently, EBITDA for the company is 83.0 million with net debt to EBITDA at -110.64. When we switch over and look at the enterprise to sales, we see a ratio of 1.5. The receivables turnover for the company is 24.43for trailing twelve months and the total asset turnover is 0.63. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.53.
Conclusion
To put it simply, Frontier Group Holdings Inc (ULCC) has had a better performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
