Fannie Mae, Freddie Mac shares tumble after conservatorship comments
In a recent transaction, Josh A. Wetzel, Vice President and Chief Accounting Officer of Frontier Group Holdings , Inc. (NASDAQ:ULCC), sold 9,000 shares of the company’s common stock. The shares were sold at a price of $8.9401 each, totaling approximately $80,460. The sale comes amid a remarkable 154% surge in ULCC’s stock price over the past six months, though InvestingPro analysis indicates the stock remains slightly undervalued relative to its Fair Value. Following this transaction, Wetzel retains ownership of 1,198 shares in the airline company. This move comes as part of routine financial activities by company executives and provides a snapshot of insider trading within the firm. Frontier Group Holdings, headquartered in Denver, Colorado, continues to operate in the scheduled air transportation industry, with a market capitalization of nearly $2 billion and significant operational challenges, including a concerning current ratio of 0.53. For deeper insights into ULCC’s financial health and growth prospects, including 12 additional exclusive ProTips, visit InvestingPro.
In other recent news, Frontier Group Holdings Inc. reported a strong performance in its fourth-quarter 2024 earnings, significantly exceeding expectations with an earnings per share (EPS) of $0.23, compared to the forecasted $0.04. The airline’s revenue for the quarter reached $1 billion, marking a 12% year-over-year growth. UBS analyst Thomas Wadewitz raised the price target for Frontier Group to $10.00, citing the company’s impressive earnings and optimistic fiscal year 2025 guidance. Frontier’s guidance for 2025 suggests a minimum of $1.00 in EPS, surpassing both UBS’s estimate of $0.66 and the consensus of $0.69.
Additionally, TD Cowen analyst Tom Fitzgerald increased the price target on Frontier Group stock to $10.00, up from $7.00, while maintaining a Hold rating. Fitzgerald noted positive developments in the company’s revenue and network strategies but expressed caution, looking for more substantial evidence of performance before fully endorsing the company’s earnings forecast for 2025. Frontier’s robust performance was further highlighted by a 15% rise in Revenue per Available Seat Mile (RASM) and a 430 basis point boost in year-over-year pretax margin, reaching 5.1%.
The company is working on initiatives to increase loyalty income, which is currently at $3 per passenger, significantly lower than the approximately $30 seen at legacy carriers. These developments reflect a positive outlook for Frontier, with strategic moves anticipated to contribute to high single-digit percentage RASM growth for FY’25. Despite some anticipated unit cost pressures, the airline’s recent performance and forward-looking statements have bolstered investor confidence, as reflected in the revised price targets from both UBS and TD Cowen.
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