Frontline Ltd. (FRO): Why It Fell -2.21% Today, And What Comes Next

Big changes are happening at Frontline Ltd. (NYSE:FRO), which makes the stock worth watching today. The company is among the top losers of the stock market today, sinking -2.21% or (-0.25 points) to $11.06 from its previous close of $11.31. Does this decline mean it the best stock to buy right now? The shares seem to have an active trading volume day with a reported 1901325 contracts so far this session. FRO shares had a relatively better volume day versus average trading capacity of 823.72 thousand shares, but with a 73.26 million float and a 20.19% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for FRO stock indicates that the average analyst price target is $5.1 per share. This means the stock has a potential decrease of -53.89% from where the FRO share price has been trading recently which is between $10.78 and $11.53. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $8. Flipping the other side of the coin, an analyst who is fully bullish set a price target as high as $17.98.

During the recent trading session for Frontline Ltd. (NYSE:FRO), the company witnessed their stock rise $1.74 over a week and surge $2.4 from the price 20 days ago. When compared to their established 52-week high of $11.91, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 09/10/19. The recent low of $4.82 stood for a -4.08% since 11/02/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 0.87 is also allocated to the stock. Since the beta is less than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to. At the moment, the median target price for FRO is set at $11.09, a figure which is below the recent 1-year high the stock witnessed.

Looking at the current readings for Frontline Ltd., the two-week RSI stands at 75.97. This figure suggests that FRO stock, for now, is oversold, meaning that the shares are not stable in terms of price movement. The stochastic readings, on the other hand, based on the current FRO readings is similarly very revealing as it has a stochastic reading of 89.38% at this stage. This figure means that FRO share price today is being oversold.

Technical chart claims that Frontline Ltd. (FRO) would settle between $11.63/share to $11.96/share level. However, if the stock price goes below the $10.88 mark, then the market for Frontline Ltd. becomes much weaker. If that happens, the stock price might even plunge as low as $10.46 for its downside target. The stock is currently in the green zone of MACD, with the indicator reading 1.15. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Analysts at BTIG Research raised their recommendation on shares of FRO from Neutral to Buy in their opinion released on September 13. Nordea analysts bumped their rating on Frontline Ltd. (NYSE:FRO) stock from Sell to Buy in a separate flash note issued to investors on August 28. Analysts at DNB Markets released an upgrade from Hold to Buy for the stock, in a research note that dated back to February 12.

FRO equity has an average rating of 3.41, with the figure leaning towards a bullish end. 4 analysts who tracked the company were contacted by Reuters. Amongst them, 2 rated the stock as a hold while the remaining 2 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while no rated it as a sell. 2 analysts rated Frontline Ltd. (NYSE:FRO) as a buy or a strong buy while not a single analyst advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.

Frontline Ltd. (FRO)’s current-quarter revenues are projected to climb by nearly -45.4% to hit $97.43 million, based on current consensus estimate. The firm’s full-year revenues are expected to expand by over -40% from $754310 to a noteworthy $452610. At the other end of the current quarter income statement, Frontline Ltd. is expected to see its adjusted earnings surge by roughly 83% to hit $-0.08 per share. For the fiscal year, FRO’s earnings are projected to climb by roughly -119.1% to hit $-0.09 per share.