Frontline Ltd. [NYSE: FRO] stock went on an upward path that rose over 2.72% on Wednesday, amounting to a one-week price increase of more than 5.73%. The company report on May 19, 2021 that FRO – Acquisition of Six VLCCs Under Construction.
Frontline Ltd. (NYSE and OSE: FRO) (“Frontline” or the “Company”) announces that it has entered into an agreement for the acquisition through resale of six latest generation ECO-type VLCC newbuilding contracts.
The six VLCCs are currently under construction at the Hyundai Heavy Industries (“HHI”) shipyard in South Korea and are being acquired for an aggregate purchase price of $565.8 million, including an estimated $25.7 million in additions and upgrades to the standard specifications. The vessels are designed to operate on different fuels, including Biofuel, have the potential to be converted or retrofitted to consume fuel like LNG or Ammonia and consequently there is an ability to cut CO2 emissions to zero when technology, logistics and the regulatory framework allows for it. The newbuildings will also be fitted with Exhaust Gas Scrubber technology, high-end Anti Fouling systems, equipped with Digital Energy Performance solutions as well as compliant with specific Exxon Mobile lightering requirements to allow for maximum trading flexibility.
Over the last 12 months, FRO stock rose by 5.60%. The one-year Frontline Ltd. stock forecast points to a potential upside of 30.83. The average equity rating for FRO stock is currently 2.20, trading closer to a bullish pattern in the stock market.
The market cap for the stock reached $1.65 billion, with 197.71 million shares outstanding and 97.31 million shares in the current float. Compared to the average trading volume of 1.93M shares, FRO stock reached a trading volume of 2953773 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Guru’s Opinion on Frontline Ltd. [FRO]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for FRO shares is $12.00 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on FRO stock is a recommendation set at 2.20. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
H.C. Wainwright have made an estimate for Frontline Ltd. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on March 29, 2021. The new note on the price target was released on February 22, 2021, representing the official price target for Frontline Ltd. stock. Previously, the target price had yet another raise from $5.50 to $7, while Evercore ISI kept a In-line rating on FRO stock.
The Average True Range (ATR) for Frontline Ltd. is set at 0.27, with the Price to Sales ratio for FRO stock in the period of the last 12 months amounting to 1.35. The Price to Book ratio for the last quarter was 1.02, with the Price to Cash per share for the same quarter was set at 0.92. Price to Free Cash Flow for FRO in the course of the last twelve months was 16.31 with Quick ratio for the last quarter at 1.10.
FRO Stock Performance Analysis:
Frontline Ltd. [FRO] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 5.73. With this latest performance, FRO shares gained by 14.33% in over the last four-week period, additionally plugging by 22.60% over the last 6 months – not to mention a rise of 5.60% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for FRO stock in for the last two-week period is set at 66.11, with the RSI for the last a single of trading hit 72.82, and the three-weeks RSI is set at 62.19 for Frontline Ltd. [FRO]. The present Moving Average for the last 50 days of trading for this stock 7.57, while it was recorded at 8.01 for the last single week of trading, and 7.02 for the last 200 days.
Insight into Frontline Ltd. Fundamentals:
Operating Margin for any stock indicates how profitable investing would be, and Frontline Ltd. [FRO] shares currently have an operating margin of +18.77 and a Gross Margin at +21.47. Frontline Ltd.’s Net Margin is presently recorded at +30.70.
Return on Total Capital for FRO is now 4.33, given the latest momentum, and Return on Invested Capital for the company is 4.52. Return on Equity for this stock inclined to 7.41, with Return on Assets sitting at 3.69. When it comes to the capital structure of this company, Frontline Ltd. [FRO] has a Total Debt to Total Equity ratio set at 83.23. Additionally, FRO Total Debt to Total Capital is recorded at 45.42, with Total Debt to Total Assets ending up at 35.22. Long-Term Debt to Equity for the company is recorded at 77.60, with the Long-Term Debt to Total Capital now at 42.35.
Frontline Ltd.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.10 and a Current Ratio set at 1.30.
FRO Stock EPS
With the latest financial reports released by the company, Frontline Ltd. posted -0.06/share EPS, while the average EPS was predicted by analysts to be reported at 0.03/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -300.00%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for FRO. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Frontline Ltd. go to -11.30%.
Frontline Ltd. [FRO] Insider Position Details
There are presently around $326 million, or 21.10% of FRO stock, in the hands of institutional investors. The top three institutional holders of FRO stocks are: FOLKETRYGDFONDET with ownership of 9,818,351, which is approximately 0% of the company’s market cap and around 33.80% of the total institutional ownership; BLACKROCK INC., holding 6,681,571 shares of the stock with an approximate value of $55.46 million in FRO stocks shares; and VANGUARD GROUP INC, currently with $26.86 million in FRO stock with ownership of nearly 5.934% of the company’s market capitalization.
Positions in Frontline Ltd. stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 65 institutional holders increased their position in Frontline Ltd. [NYSE:FRO] by around 6,731,908 shares. Additionally, 59 investors decreased positions by around 4,422,268 shares, while 24 investors held positions by with 28,145,360 shares. The mentioned changes placed institutional holdings at 39,299,536 shares, according to the latest SEC report filing. FRO stock had 28 new institutional investments in for a total of 4,031,009 shares, while 24 institutional investors sold positions of 641,667 shares during the same period.