Frontier Group Holdings CFO sells shares worth $1.39 million

Published 21/02/2025, 22:10
Frontier Group Holdings CFO sells shares worth $1.39 million

Mark Christopher Mitchell, Senior Vice President and Chief Financial Officer of Frontier Group Holdings , Inc. (NASDAQ:ULCC), recently executed a series of stock transactions, according to a filing with the Securities and Exchange Commission dated February 19 and 20, 2025. The transactions included both acquisitions and sales of common stock in the airline company, which currently has a market capitalization of $1.78 billion and has seen its stock surge 149% over the past six months.

Mitchell exercised stock options to acquire a total of 158,803 shares at a price of $1.3602 per share. Following these acquisitions, he sold the same number of shares in two separate transactions. The sales were executed at weighted average prices, with one batch sold at prices ranging from $9.00 to $9.18 per share, and the other from $8.45 to $8.56 per share. The total value of the shares sold amounted to approximately $1.39 million. According to InvestingPro analysis, ULCC is currently trading slightly below its Fair Value.

After these transactions, Mitchell’s direct ownership stood at 112,086 shares. These movements in stock holdings are part of regular financial strategies and are disclosed in compliance with SEC regulations. InvestingPro subscribers can access 11 additional key insights about ULCC’s financial health and future prospects through the comprehensive Pro Research Report.

In other recent news, Frontier Group Holdings Inc. has reported a strong fourth-quarter 2024 performance, significantly surpassing earnings expectations. The company achieved an earnings per share (EPS) of $0.23, far exceeding the forecasted $0.04, alongside a 12% year-over-year revenue growth, reaching $1 billion. This robust performance has led UBS analyst Thomas Wadewitz to raise the price target for Frontier Group to $10.00, maintaining a Neutral rating, following a notable 15% increase in Revenue per Available Seat Mile (RASM) and a 430 basis point rise in pretax margin.

Additionally, TD Cowen analyst Tom Fitzgerald adjusted Frontier Group’s stock target from $7.00 to $10.00 while keeping a Hold rating. Fitzgerald highlighted the company’s prudent revenue and network strategies but remains cautious, seeking more evidence of successful execution before further endorsement. Frontier’s future outlook includes a projected EPS of at least $1.00 for fiscal year 2025, supported by anticipated high single-digit percentage RASM growth, despite expected unit cost pressures.

The airline is also focusing on enhancing its premium offerings and loyalty programs to boost revenue, with initiatives aimed at increasing loyalty income, currently at $3 per passenger. Frontier’s strategic moves, including the maturation of new markets, are expected to contribute to its positive financial trajectory, reflecting the analysts’ revised price targets and optimistic guidance.

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