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Howard Diamond, Executive Vice President of Legal & Corporate Affairs at Frontier Group Holdings , Inc. (NASDAQ:ULCC), recently sold a significant portion of the company’s stock. According to a recent SEC filing, Diamond sold 87,830 shares of common stock on February 20, 2025. The shares were sold at a weighted average price of $8.768, with individual transaction prices ranging from $8.70 to $8.84. Following this sale, Diamond retains ownership of 175,886 shares. This transaction reflects a total sale value of approximately $770,093. InvestingPro analysis indicates the stock is currently undervalued, with 10+ additional exclusive insights available to subscribers, including detailed financial health metrics and growth forecasts.
In other recent news, Frontier Group Holdings Inc. reported a strong fourth-quarter performance for 2024, with earnings per share (EPS) of $0.23, significantly exceeding the forecasted $0.04. The airline’s revenue for the quarter reached $1 billion, marking a 12% increase compared to the previous year. UBS analyst Thomas Wadewitz responded to this robust performance by raising the price target for Frontier Group to $10.00, maintaining a Neutral rating. Similarly, TD Cowen analyst Tom Fitzgerald increased the stock’s price target to $10.00, up from $7.00, while keeping a Hold rating.
Frontier Group’s forward guidance projects a minimum of $1.00 in EPS for fiscal year 2025, surpassing both UBS’s estimate of $0.66 and the consensus of $0.69. The company attributed its positive outlook to factors such as industry supply discipline and the maturation of new markets. These markets, which initially underperformed, are expected to contribute to a 300-350 basis point lift in Revenue per Available Seat Mile (RASM) for FY’25.
Additionally, Frontier Group is working on initiatives to enhance loyalty income, which currently stands at $3 per passenger, significantly lower than the $30 seen at legacy carriers. The airline aims to introduce new premium offerings and expand its loyalty program to drive further engagement. Both analysts’ adjustments in price targets reflect the positive sentiment surrounding Frontier Group’s recent financial performance and strategic initiatives.
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