Frontline Sees Unusually Large Options Volume (NYSE:FRO)

Frontline PLC (NYSE:FROGet Free Report) was the recipient of unusually large options trading on Friday. Traders bought 14,816 call options on the company. This represents an increase of approximately 154% compared to the typical daily volume of 5,824 call options.

Institutional Trading of Frontline

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. University of Texas Texas AM Investment Management Co. acquired a new position in shares of Frontline in the 4th quarter worth approximately $25,000. Fiduciary Financial Advisors bought a new stake in shares of Frontline in the 2nd quarter valued at $28,000. Assetmark Inc. increased its position in shares of Frontline by 278.6% during the first quarter. Assetmark Inc. now owns 973 shares of the shipping company’s stock worth $34,000 after buying an additional 716 shares during the period. Sunbelt Securities Inc. bought a new position in Frontline during the third quarter worth $41,000. Finally, Parallel Advisors LLC raised its stake in Frontline by 58.9% during the first quarter. Parallel Advisors LLC now owns 1,311 shares of the shipping company’s stock worth $46,000 after buying an additional 486 shares during the last quarter. Institutional investors and hedge funds own 22.70% of the company’s stock.

Frontline Trading Up 0.6%

Shares of FRO stock opened at $44.02 on Friday. The firm has a market capitalization of $9.80 billion, a P/E ratio of 10.84 and a beta of 0.02. The company has a quick ratio of 2.03, a current ratio of 2.03 and a debt-to-equity ratio of 0.83. The stock’s fifty day simple moving average is $39.32 and its 200 day simple moving average is $36.77. Frontline has a twelve month low of $20.31 and a twelve month high of $45.29.

Frontline (NYSE:FROGet Free Report) last issued its quarterly earnings data on Friday, August 28th. The shipping company reported $2.96 earnings per share for the quarter, topping the consensus estimate of $2.74 by $0.22. The company had revenue of $943.30 million for the quarter, compared to analysts’ expectations of $758.85 million. Frontline had a net margin of 36.70% and a return on equity of 27.80%. Frontline’s revenue for the quarter was up 96.5% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.36 earnings per share.

Frontline Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, September 28th. Investors of record on Friday, September 18th will be paid a $2.61 dividend. This is an increase from Frontline’s previous quarterly dividend of $1.55. This represents a $10.44 dividend on an annualized basis and a dividend yield of 23.7%. The ex-dividend date of this dividend is Friday, September 18th. Frontline’s payout ratio is presently 152.71%.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on FRO shares. Pareto Securities downgraded Frontline from a “buy” rating to a “hold” rating and set a $39.46 target price for the company. in a research report on Monday, May 25th. Weiss Ratings cut Frontline from a “buy (b)” rating to a “buy (b-)” rating in a research report on Wednesday, August 12th. DZ Bank downgraded Frontline from a “hold” rating to a “sell” rating in a research note on Friday, August 21st. BTIG Research increased their price objective on shares of Frontline from $45.00 to $55.00 and gave the stock a “buy” rating in a research note on Wednesday, June 24th. Finally, Danske lowered shares of Frontline from a “hold” rating to a “sell” rating in a report on Friday, August 21st. Four research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, Frontline presently has an average rating of “Hold” and a consensus target price of $41.62.

View Our Latest Research Report on Frontline

Trending Headlines about Frontline

Here are the key news stories impacting Frontline this week:

  • Positive Sentiment: Record earnings beat expectations: Frontline reported second-quarter EPS of $2.96, exceeding the $2.74 consensus estimate. Revenue jumped 96.5% year over year to $943.3 million, versus expectations of $758.9 million, while net income reached a record $659 million. The results reflect exceptionally strong tanker rates, supported in part by geopolitical risks and a tight shipping market. Frontline’s Profit Hits Record $659 Million as Geopolitical Risks Impact Tanker Rates
  • Positive Sentiment: Dividend increased substantially: Frontline declared a quarterly dividend of $2.61 per share, payable September 28 to shareholders of record September 18. The payout is 68.4% above the prior $1.55 dividend and represents an annualized payout of $10.44, with a stated yield of approximately 23.7%. Frontline Delivers Record Q2 Profit, Boosts Payouts as Tanker Market Stays Tight
  • Positive Sentiment: Analyst sentiment improved: Wall Street Zen upgraded Frontline to “Strong Buy,” adding to the positive reaction to the earnings report. Frontline Upgraded to Strong-Buy at Wall Street Zen
  • Neutral Sentiment: Options activity increased: Investors purchased 14,816 call options, 154% above average call volume. This indicates increased bullish speculation, but options activity alone does not guarantee sustained buying in the stock. Frontline Target of Unusually Large Options Trading

Frontline Company Profile

(Get Free Report)

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.

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