Frontline (NYSE:FRO) Cut to “Hold” at Zacks Investment Research

Zacks Investment Research cut shares of Frontline (NYSE:FRO) from a strong-buy rating to a hold rating in a research note published on Tuesday, reports.

According to Zacks, “FRONTLINE LTD’s business strategy is primarily based upon the following principles: emphasising operational safety and quality maintenance for all of its vessels; complying with all current and proposed environmental regulations; outsourcing technical operations and crewing; achieving low operational costs of vessels; achieving high utilisation of its vessels; competitive financing arrangements; and develop relationship to main charterers. “

FRO has been the subject of several other research reports. BTIG Research lowered shares of Frontline from a buy rating to a neutral rating in a report on Wednesday, October 21st. Jefferies Financial Group reduced their price objective on shares of Frontline from $10.00 to $9.00 and set a buy rating for the company in a research report on Friday, October 23rd. Three equities research analysts have rated the stock with a sell rating, three have issued a hold rating and two have assigned a buy rating to the stock. The company currently has an average rating of Hold and a consensus price target of $10.07.

Frontline stock opened at $5.73 on Tuesday. The company has a debt-to-equity ratio of 1.02, a quick ratio of 0.70 and a current ratio of 0.70. Frontline has a 52-week low of $5.35 and a 52-week high of $13.33. The firm has a 50 day moving average price of $6.72 and a two-hundred day moving average price of $7.82. The firm has a market cap of $1.13 billion, a price-to-earnings ratio of 2.45 and a beta of 0.42.

Frontline (NYSE:FRO) last released its quarterly earnings results on Thursday, August 27th. The shipping company reported $1.04 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.98 by $0.06. Frontline had a net margin of 35.02% and a return on equity of 32.45%. The firm had revenue of $387.10 million during the quarter, compared to analyst estimates of $330.66 million. During the same quarter last year, the business earned $0.02 EPS. The company’s revenue was up 100.2% compared to the same quarter last year. As a group, equities research analysts predict that Frontline will post 2.65 EPS for the current fiscal year.

Several hedge funds have recently made changes to their positions in FRO. State Street Corp grew its position in Frontline by 65.6% in the 1st quarter. State Street Corp now owns 50,321 shares of the shipping company’s stock valued at $484,000 after purchasing an additional 19,943 shares during the period. Alliancebernstein L.P. bought a new position in Frontline during the 1st quarter valued at $1,277,000. Tower Research Capital LLC TRC bought a new position in Frontline during the 1st quarter valued at $43,000. Royal Bank of Canada lifted its stake in Frontline by 381.4% during the 1st quarter. Royal Bank of Canada now owns 34,798 shares of the shipping company’s stock valued at $335,000 after acquiring an additional 27,569 shares in the last quarter. Finally, Raymond James Financial Services Advisors Inc. bought a new position in Frontline during the 2nd quarter valued at $100,000. 26.01% of the stock is owned by institutional investors.

Frontline Company Profile

Frontline Ltd., 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, 2019, the company operated a fleet of 71 vessels. It is also involved in the charter, purchase, and sale of vessels. Frontline Ltd.

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