Frontline Ltd. [FRO] moved down -7.58: Why It’s Important


Frontline Ltd. [NYSE: FRO] plunged by -$0.67 during the normal trading session on Wednesday and reaching a high of $8.475 during the day while it closed the day at $8.17. The company report on June 10, 2022 that FRO – Private acquisitions of Euronav shares in exchange for Frontline shares completed.

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Frontline Ltd. (“Frontline” or the “Company”) (NYSE: FRO – OSE: FRO) announces that it has agreed to acquire in privately negotiated transactions with certain shareholders of Euronav N.V. (NYSE: EURN & Euronext: EURN) (“Euronav”) a total of 7,708,908 shares in Euronav, representing 3.82% of the outstanding shares in Euronav, in exchange for a total of 10,753,924 shares in Frontline, which is equivalent to 1.395 Frontline shares for every one share of Euronav.

Settlement is expected to take place on or about 14 June 2022 by delivery of existing Frontline shares through a share lending arrangement with Frontline’s main shareholder Hemen Holding Ltd. (“Hemen”). Under the share lending agreement, Frontline will issue a total of 10,753,924 new shares to Hemen as a result of these transactions.

Frontline Ltd. stock has also loss -12.81% of its value over the past 7 days. However, FRO stock has declined by -13.64% in the 3 months of the year. Over the past six months meanwhile, it has gained 7.93% and gained 15.56% year-on date.

The market cap for FRO stock reached $1.80 billion, with 203.53 million shares outstanding and 142.78 million shares in the current float. Compared to the average trading volume of 2.84M shares, FRO reached a trading volume of 7927034 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say about Frontline Ltd. [FRO]:

Jefferies have made an estimate for Frontline Ltd. shares, keeping their opinion on the stock as Hold, with their previous recommendation back on April 27, 2022. The new note on the price target was released on May 25, 2021, representing the official price target for Frontline Ltd. stock. Previously, the target price had yet another raise to $8, while H.C. Wainwright analysts kept a Neutral rating on FRO stock.

The Average True Range (ATR) for Frontline Ltd. is set at 0.59, with the Price to Sales ratio for FRO stock in the period of the last 12 months amounting to 2.33. The Price to Book ratio for the last quarter was 0.99, with the Price to Cash per share for the same quarter was set at 0.52.

FRO stock trade performance evaluation

Frontline Ltd. [FRO] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -12.81. With this latest performance, FRO shares dropped by -21.44% in over the last four-week period, additionally plugging by 7.93% over the last 6 months – not to mention a drop of -7.89% 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 39.58, with the RSI for the last a single of trading hit 34.19, and the three-weeks RSI is set at 42.87 for Frontline Ltd. [FRO]. The present Moving Average for the last 50 days of trading for this stock 8.99, while it was recorded at 8.80 for the last single week of trading, and 8.32 for the last 200 days.

Frontline Ltd. [FRO]: An insightful look at the core 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 0.50 and a Current Ratio set at 0.70.

Frontline Ltd. [FRO]: Insider Ownership positions

There are presently around $315 million, or 21.10% of FRO stock, in the hands of institutional investors. The top three institutional holders of FRO stocks are: BLACKROCK INC. with ownership of 6,310,581, which is approximately -0.241% of the company’s market cap and around 33.80% of the total institutional ownership; VANGUARD GROUP INC, holding 4,457,223 shares of the stock with an approximate value of $39.4 million in FRO stocks shares; and MARSHALL WACE, LLP, currently with $19.87 million in FRO stock with ownership of nearly New of the company’s market capitalization.

Positions in Frontline Ltd. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 62 institutional holders increased their position in Frontline Ltd. [NYSE:FRO] by around 10,431,691 shares. Additionally, 61 investors decreased positions by around 14,782,533 shares, while 20 investors held positions by with 10,441,571 shares. The mentioned changes placed institutional holdings at 35,655,795 shares, according to the latest SEC report filing. FRO stock had 31 new institutional investments in for a total of 6,111,931 shares, while 18 institutional investors sold positions of 1,540,323 shares during the same period.