Frontline (NYSE:FRO) Sets New 1-Year High – Still a Buy?

Frontline PLC (NYSE:FRO) shares hit a new 52-week high on Monday . The stock traded as high as $41.59 and last traded at $41.5850, with a volume of 2103817 shares. The stock had previously closed at $40.93.

Wall Street Analysts Forecast Growth

Several brokerages have commented on FRO. Wall Street Zen raised shares of Frontline from a “hold” rating to a “buy” rating in a research report on Saturday, April 4th. Weiss Ratings raised Frontline from a “hold (c+)” rating to a “buy (b)” rating in a research report on Friday, May 22nd. Danske cut Frontline to a “hold” rating in a research note on Tuesday, May 26th. Dnb Carnegie lowered Frontline from a “strong-buy” rating to a “hold” rating in a report on Monday, March 2nd. Finally, Piper Sandler cut Frontline to a “neutral” rating in a research note on Friday, February 27th. Four analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of “Hold” and a consensus price target of $39.12.

Frontline Trading Up 2.1%

The firm has a market capitalization of $9.30 billion, a price-to-earnings ratio of 10.30 and a beta of 0.02. The company has a debt-to-equity ratio of 0.83, a quick ratio of 2.03 and a current ratio of 2.03. The company has a 50-day moving average price of $36.68 and a 200-day moving average price of $31.59.

Frontline (NYSE:FRO) last issued its earnings results on Friday, May 22nd. The shipping company reported $1.55 earnings per share for the quarter, missing the consensus estimate of $1.58 by ($0.03). The business had revenue of $714.24 million for the quarter, compared to analyst estimates of $579.59 million. Frontline had a return on equity of 27.80% and a net margin of 36.70%.Frontline’s revenue was up 66.9% on a year-over-year basis. During the same period last year, the business posted $0.18 EPS.

Frontline Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, June 23rd. Shareholders of record on Friday, June 12th will be paid a $1.55 dividend. This is an increase from Frontline’s previous quarterly dividend of $1.03. This represents a $6.20 annualized dividend and a yield of 14.8%. The ex-dividend date is Friday, June 12th. Frontline’s payout ratio is currently 152.71%.

Institutional Trading of Frontline

Several institutional investors have recently modified their holdings of FRO. Royal Bank of Canada grew its position in shares of Frontline by 32.3% in the 1st quarter. Royal Bank of Canada now owns 26,342 shares of the shipping company’s stock valued at $392,000 after buying an additional 6,424 shares during the last quarter. Millennium Management LLC acquired a new position in Frontline in the first quarter valued at $7,587,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in Frontline by 12.4% in the first 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 acquiring an additional 20,370 shares in the last quarter. American Century Companies Inc. grew its holdings in shares of Frontline by 93.6% during the second quarter. American Century Companies Inc. now owns 72,539 shares of the shipping company’s stock worth $1,190,000 after purchasing an additional 35,078 shares during the last quarter. Finally, Invesco Ltd. grew its holdings in shares of Frontline by 215.8% during the second quarter. Invesco Ltd. now owns 91,039 shares of the shipping company’s stock worth $1,494,000 after purchasing an additional 62,210 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.