Zacks Investment Research Downgrades Frontline Ltd. (FRO) to Sell

Zacks Investment Research Downgrades Frontline Ltd. (FRO) to Sell

Frontline Ltd. (NYSE:FRO) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Wednesday.

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. “

A number of other brokerages have also recently issued reports on FRO. Credit Suisse Group AG reaffirmed a “neutral” rating on shares of Frontline in a research report on Wednesday, February 22nd. Seaport Global Securities raised Frontline from a “neutral” rating to a “buy” rating and set a $8.00 price objective for the company in a research report on Wednesday. One investment analyst has rated the stock with a sell rating, three have issued a hold rating and two have given a buy rating to the company. The company currently has an average rating of “Hold” and a consensus target price of $7.38.

Shares of Frontline (NYSE:FRO) opened at 5.81 on Wednesday. The company’s 50-day moving average is $6.36 and its 200-day moving average is $6.91. Frontline has a 52 week low of $5.39 and a 52 week high of $10.41. The firm has a market cap of $981.16 million, a PE ratio of 14.24 and a beta of 2.36.

Frontline (NYSE:FRO) last announced its earnings results on Tuesday, May 30th. The shipping company reported $0.16 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.12 by $0.04. The firm had revenue of $121.94 million during the quarter, compared to analysts’ expectations of $103.70 million. Frontline had a return on equity of 13.92% and a net margin of 21.54%. Analysts forecast that Frontline will post $0.13 EPS for the current fiscal year.

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 21st. Stockholders of record on Monday, June 12th will be given a $0.15 dividend. The ex-dividend date is Thursday, June 8th. This represents a $0.60 annualized dividend and a dividend yield of 10.33%.

Several large investors have recently bought and sold shares of FRO. Evermore Global Advisors LLC acquired a new stake in Frontline during the fourth quarter valued at $10,097,000. Russell Investments Group Ltd. acquired a new stake in Frontline during the fourth quarter valued at $3,322,000. Lingohr & Partner Asset Management GmbH boosted its stake in Frontline by 38.1% in the first quarter. Lingohr & Partner Asset Management GmbH now owns 1,666,000 shares of the shipping company’s stock valued at $11,229,000 after buying an additional 460,019 shares in the last quarter. Boston Partners acquired a new stake in Frontline during the first quarter valued at $2,231,000. Finally, Vanguard Group Inc. boosted its stake in Frontline by 165.5% in the first quarter. Vanguard Group Inc. now owns 443,668 shares of the shipping company’s stock valued at $2,990,000 after buying an additional 276,580 shares in the last quarter. 8.80% of the stock is owned by institutional investors.

About Frontline

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