Frontline Plc [NYSE: FRO] stock went on a downward path that fall over -2.86% on Thursday, amounting to a one-week price increase of more than 1.24%. The company report on January 12, 2024 at 4:30 PM that FRO – Sale of its five oldest VLCCs.
Frontline plc (the “Company” or “Frontline”) (NYSE: FRO – OSE: FRO) today announced that it has entered into an agreement whereby the Company will sell its five oldest VLCCs, built in 2009 and 2010, for an aggregate net sale price of $290 million. The vessels are expected to be delivered to the new owner during the first quarter of 2024. After repayment of existing debt on the vessels, the transaction is expected to generate net cash proceeds of approximately $207 million, and the Company expects to record a gain in the first quarter of 2024 in the range of approximately $68 million to $76 million, depending on the date of delivery of each vessel to the new owner. The sale is subject to certain closing conditions, in line with industry standards.
Lars H. Barstad, Chief Executive Officer of Frontline Management AS commented:“We are very pleased with this transaction, capturing firm pricing for 14-15 year old vessels. Frontline has increased its position significantly in the VLCC segment during 2023 and this divestment of our remaining non-eco VLCCs is in line with our strategy of running the most modern, fuel-efficient fleet in the market.”.
Over the last 12 months, FRO stock rose by 59.36%. The one-year Frontline Plc stock forecast points to a potential upside of 18.58. The average equity rating for FRO stock is currently 1.43, trading closer to a bullish pattern in the stock market.
The market cap for the stock reached $4.91 billion, with 222.62 million shares outstanding and 143.15 million shares in the current float. Compared to the average trading volume of 2.78M shares, FRO stock reached a trading volume of 6354022 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Guru’s Opinion on Frontline Plc [FRO]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for FRO shares is $27.07 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 1.43. 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.
Deutsche Bank have made an estimate for Frontline Plc shares, keeping their opinion on the stock as Buy, with their previous recommendation back on January 09, 2024.
The Average True Range (ATR) for Frontline Plc is set at 0.85 The Price to Book ratio for the last quarter was 2.20, with the Price to Cash per share for the same quarter was set at 2.32.
FRO Stock Performance Analysis:
Frontline Plc [FRO] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 1.24. With this latest performance, FRO shares gained by 9.33% in over the last four-week period, additionally plugging by 33.66% over the last 6 months – not to mention a rise of 59.36% 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 52.74, with the RSI for the last a single of trading hit 50.65, and the three-weeks RSI is set at 53.43 for Frontline Plc [FRO]. The present Moving Average for the last 50 days of trading for this stock 21.04, while it was recorded at 22.53 for the last single week of trading, and 18.08 for the last 200 days.
Insight into Frontline Plc Fundamentals:
Frontline Plc’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.79 and a Current Ratio set at 1.79.
FRO Stock EPS
With the latest financial reports released by the company, Frontline Plc posted 0.97/share EPS, while the average EPS was predicted by analysts to be reported at 1.06/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -8.50%. 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.
Frontline Plc [FRO] Institutonal Ownership Details
The top three institutional holders of FRO stocks are: VANGUARD GROUP INC with ownership of 1.3 billion shares, which is approximately 8.2815%. BLACKROCK INC., holding 1.03 billion shares of the stock with an approximate value of $176.59 billion in FRO stocks shares; and BERKSHIRE HATHAWAY INC, currently with $156.75 billion in FRO stock with ownership which is approximately 5.8325%.
