Stock Traders Buy Large Volume of Frontline Call Options (NYSE:FRO)

Frontline plc (NYSE:FRO) was the target of unusually large options trading on Tuesday. Stock traders acquired 4,374 call options on the company. This represents an increase of 70% compared to the typical volume of 2,580 call options.

Frontline Trading Down 0.3 %

Shares of Frontline stock opened at $15.85 on Thursday. Frontline has a 12-month low of $13.17 and a 12-month high of $29.39. The stock has a market cap of $3.53 billion, a price-to-earnings ratio of 6.47 and a beta of 0.01. The company has a current ratio of 1.43, a quick ratio of 1.43 and a debt-to-equity ratio of 1.44. The company has a fifty day simple moving average of $16.51 and a 200-day simple moving average of $21.01.

Frontline (NYSE:FRO) last released its quarterly earnings results on Wednesday, November 27th. The shipping company reported $0.34 EPS for the quarter, missing the consensus estimate of $0.39 by ($0.05). Frontline had a net margin of 25.64% and a return on equity of 19.25%. During the same quarter in the previous year, the company posted $0.36 earnings per share. On average, equities analysts forecast that Frontline will post 1.83 EPS for the current fiscal year.

Frontline Cuts Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, December 31st. Stockholders of record on Wednesday, December 11th were issued a $0.34 dividend. This represents a $1.36 annualized dividend and a dividend yield of 8.58%. The ex-dividend date of this dividend was Wednesday, December 11th. Frontline’s payout ratio is 55.51%.

Analysts Set New Price Targets

Several equities analysts have recently commented on the stock. Fearnley Fonds upgraded shares of Frontline to a “strong-buy” rating in a report on Friday, September 27th. Kepler Capital Markets cut shares of Frontline from a “buy” rating to a “hold” rating and set a $15.83 price objective for the company. in a report on Thursday, December 12th. BTIG Research upgraded shares of Frontline from a “neutral” rating to a “buy” rating and set a $30.00 target price on the stock in a report on Monday, October 7th. Finally, Jefferies Financial Group cut their price objective on Frontline from $26.00 to $20.00 and set a “buy” rating on the stock in a research report on Tuesday, December 17th. One analyst has rated the stock with a sell rating, two have issued a hold rating, four have assigned a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $24.36.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. Hsbc Holdings PLC lifted its holdings in Frontline by 7.7% in the second quarter. Hsbc Holdings PLC now owns 1,932,842 shares of the shipping company’s stock valued at $50,683,000 after acquiring an additional 138,011 shares during the period. Forest Avenue Capital Management LP raised its holdings in Frontline by 12.7% during the second quarter. Forest Avenue Capital Management LP now owns 1,429,909 shares of the shipping company’s stock worth $36,834,000 after purchasing an additional 161,518 shares during the last quarter. M&G PLC grew its holdings in Frontline by 27.2% in the third quarter. M&G PLC now owns 1,110,763 shares of the shipping company’s stock valued at $25,164,000 after purchasing an additional 237,446 shares during the last quarter. Smead Capital Management Inc. raised its stake in shares of Frontline by 5.1% during the 3rd quarter. Smead Capital Management Inc. now owns 670,581 shares of the shipping company’s stock worth $15,188,000 after buying an additional 32,531 shares during the last quarter. Finally, The Manufacturers Life Insurance Company boosted its position in shares of Frontline by 1,326.2% in the 3rd quarter. The Manufacturers Life Insurance Company now owns 527,470 shares of the shipping company’s stock worth $12,053,000 after buying an additional 490,486 shares in the last quarter. 22.70% of the stock is owned by hedge funds and other institutional investors.

About Frontline

Frontline plc, a shipping company, engages in the seaborne transportation of crude oil and oil products worldwide. It owns and operates oil and product tankers. As of December 31, 2022, the company operated a fleet of 70 vessels. It is also involved in the charter, purchase, and sale of vessels. The company was founded in 1985 and is based in Limassol, Cyprus.