Frontline (NYSE:FRO) Lifted to “Strong-Buy” at Zacks Investment Research

Frontline (NYSE:FRO) was upgraded by Zacks Investment Research from a “sell” rating to a “strong-buy” rating in a report released on Tuesday, Zacks.com reports. The brokerage currently has a $12.00 price objective on the shipping company’s stock. Zacks Investment Research‘s target price suggests a potential upside of 17.07% from the stock’s previous close.

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. “

Several other research firms also recently commented on FRO. Evercore ISI upgraded shares of Frontline from an “in-line” rating to an “outperform” rating and set a $14.00 price objective on the stock in a report on Friday, October 18th. ValuEngine downgraded shares of Frontline from a “sell” rating to a “strong sell” rating in a report on Thursday, January 23rd. Finally, BTIG Research upped their price objective on shares of Frontline from $12.00 to $18.00 in a report on Tuesday, November 5th. One investment analyst has rated the stock with a sell rating, two have given a hold rating, four have issued a buy rating and one has assigned a strong buy rating to the company’s stock. The company has a consensus rating of “Buy” and a consensus price target of $12.00.

Shares of NYSE:FRO traded down $0.24 on Tuesday, hitting $10.25. The company had a trading volume of 2,069,392 shares, compared to its average volume of 1,825,988. Frontline has a 1-year low of $4.82 and a 1-year high of $13.33. The stock has a market cap of $2.07 billion, a price-to-earnings ratio of 30.15 and a beta of 1.18. The stock has a 50 day moving average price of $12.10 and a 200 day moving average price of $9.96. The company has a current ratio of 1.44, a quick ratio of 1.44 and a debt-to-equity ratio of 1.46.

Frontline (NYSE:FRO) last released its quarterly earnings data on Wednesday, November 27th. The shipping company reported ($0.06) EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.03 by ($0.09). Frontline had a net margin of 6.76% and a return on equity of 5.56%. The company had revenue of $187.64 million during the quarter, compared to analyst estimates of $106.40 million. During the same quarter in the prior year, the firm earned ($0.05) earnings per share. Frontline’s revenue for the quarter was down .6% on a year-over-year basis. Sell-side analysts anticipate that Frontline will post 0.79 earnings per share for the current fiscal year.

Hedge funds have recently added to or reduced their stakes in the stock. Bay Colony Advisory Group Inc d b a Bay Colony Advisors bought a new position in shares of Frontline during the fourth quarter valued at approximately $615,000. California Public Employees Retirement System purchased a new stake in Frontline in the fourth quarter worth $797,000. Virginia National Bank purchased a new stake in Frontline in the fourth quarter worth $1,302,000. James Investment Research Inc. purchased a new stake in Frontline in the fourth quarter worth $325,000. Finally, Sciencast Management LP purchased a new stake in Frontline in the fourth quarter worth $289,000. Institutional investors and hedge funds own 21.06% of the company’s stock.

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, 2018, the company's fleet consisted of 61 vessels, which included very large crude carrier, Suezmax, and LR2/Aframax tankers with an aggregate capacity of approximately 11.6 million deadweight ton.

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