Frontline Ltd. (NYSE:FRO) shares fell to a low of $8.72 before closing at $8.90. Intraday shares traded counted 1.79 million, which was 8.38% higher than its 30-day average trading volume of 1.95M. FRO’s previous close was $8.90 while the outstanding shares total 197.71M. The firm has a beta of 0.45, a 12-month trailing P/E ratio of 4.26. The stock’s Relative Strength Index (RSI) is 74.97, with weekly volatility at 3.65% and ATR at 0.29. The FRO stock’s 52-week price range has touched low of $5.28 and a $9.42 high. The stock traded lower over the last trading session, losing 0.00% on 05/24/21.
Investors have identified the Oil & Gas Midstream company Frontline Ltd. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $1.65 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Frontline Ltd. (FRO) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For FRO, the company has in raw cash 189.65 million on their books with 167.08 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 378.32 million total, with 281.36 million as their total liabilities.
FRO were able to record 413.49 million as free cash flow during the 08/31/2021 quarter of the year, this saw their quarterly net cash flow reduce by 12.27 million. In cash movements, the company had a total of 604.06 million as operating cash flow.
Potential earnings growth for Frontline Ltd. (FRO)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/31/2021 quarter of the year, Frontline Ltd. recorded a total of 161.99 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -107.6% coming in sequential stages and their sales for the 08/31/2021 quarter reducing by -52.73%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 127.24 million trying to sell their products during the last quarter, with the result yielding a gross income of 34.75 million. This allows shareholders to hold on to 197.71M with the recently reported earning now reading -0.08 cents per share. This is a figure that compared to analyst’s prediction for their 08/31/2021 (-0.10 cents a share).
Having a look at the company’s valuation, the company is expected to record 1.25 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on FRO sounds very interesting.
Is the stock of FRO attractive?
In the last 6 months, insiders have changed their ownership in shares of company stock by 33.80%.
2 out of 14 analysts covering the stock have rated it a Buy, while 11 have maintained a Hold recommendation on Frontline Ltd.. 1 analysts has assigned a Sell rating on the FRO stock. The 12-month mean consensus price target for the company’s shares has been set at $12.00.