Frontline Ltd. (FRO) Is A Stock You Should Watch

As of Thursday close, Frontline Ltd.’s (NYSE:FRO) stock was down -$0.07, moving down -0.68 percent to $10.24. The average number of shares traded per day over the past five days has been 2,811,160 shares. 3 times new highs have been achieved over the past 5 days, with a $0.76 gain in that time frame. In the last twenty days, the average volume was 2,616,725, while in the previous 50 days, it was 3,032,408.

Since last month, FRO stock rose 25.34%. Shares of the company fell to $7.51 on 07/06/22, the lowest level in the past month. A 52-week high of $11.57 was reached on 05/27/22 after having rallying from a 52-week low of $6.10. Since the beginning of this year, FRO’s stock price has risen by 44.84% or $3.17, and marked a new high 15 times. However, the stock has declined by -11.46% since its 52-week high.

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Valuation Metrics

The stock’s beta is 0.23. Besides these, the trailing price-to-sales (P/S) ratio of 2.91, the price-to-book (PB) ratio of 1.24.

The latest dividend of $0.50 per share was paid out, which is -28.57% less than last year’s $0.70.

Financial Health

In the three months ended March 30, Frontline Ltd.’s quick ratio stood at 0.50, while its current ratio was 0.70, showing that the company is not able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending March 30 was 1.09, and the total debt-to-equity ratio was 1.35. On the profitability front, the trailing twelve-month gross margin is 22.50% percent. In the year ended March 30, EBITDA margin amounted to 32.85%, whereas operating margins totaled 1.30%. Based on annual data, FRO earned $178.38 million in gross profit and brought in $749.38 million in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 0.20%. Return on equity (ROE) for the past 12 months was -0.50%.

In Frontline Ltd.’s quarter-end financial report for March 30, it reported total debt of $2.13 billion against cash and short-term investments of $2.44 million. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. FRO’s revenue fell -62.96% during the quarter, while net income inched up to $749.38 million. While analysts expected Frontline Ltd. to report -$0.31 quarterly earnings, the actual figure was -$0.1 per share, beating the consensus estimate by 67.70%. During the quarter, the company generated $60.66 million in EBITDA. The liabilities of Frontline Ltd. were 2.38 billion at the end of its most recent quarter ended March 30, and its total debt was $2.28 billion.

Technical Picture

This quick technical analysis looks at Frontline Ltd.’s (FRO) price momentum. With a historical volatility rate of 48.25%, the RSI 9-day stood at 66.49% on 04 August.

With respect to its five-day moving average, the current Frontline Ltd. price is up by +8.02% percent or $0.76. At present, FRO shares trade +22.34% above its 20-day simple moving average and +23.67% percent above its 100-day simple moving average. However, the stock is currently trading approximately +13.78% above its SMA50 and +11.55% above its SMA200.

Stochastic coefficient K was 86.49% and Stochastic coefficient D was 88.38%, while ATR was 0.43. Given the Stochastic reading of 79.61% for the 14-day period, the RSI (14) reading has been calculated as 62.44%. As of today, the MACD Oscillator reading stands at 0.44, while the 14-day reading stands at 0.62.

Analyst Ratings

Jefferies launched its rating on Frontline Ltd. (NYSE: FRO) to a Hold in a note to investors on July 21, 2022. Frontline Ltd. (FRO) has been rated Overweight by analysts. According to 0 brokerage firms, FRO is a sell, and 3 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 0 analysts rate Frontline Ltd. stock as buy, with 8 recommending it as overweight.

With a median target price of $12.73, the current consensus forecast for the stock is $9.00 – $14.57. Based on these forecasts, analysts predict Frontline Ltd. (FRO) will achieve an average price target of $12.43.


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