On May 24, 2023, Barry Biffle, President & CEO of Frontier Group Holdings Inc (ULCC, Financial), sold 23,800 shares of the company's stock. This recent transaction is part of a series of insider sales by Biffle over the past year, during which he has sold a total of 253,551 shares and purchased none.
Who is Barry Biffle?
Barry Biffle is the President and CEO of Frontier Group Holdings Inc, a position he has held since 2014. Under his leadership, the company has experienced significant growth and expansion. Biffle has over two decades of experience in the airline industry, having previously held executive positions at Spirit Airlines and VivaAerobus.
Frontier Group Holdings Inc's Business Description
Frontier Group Holdings Inc, operating under the brand name Frontier Airlines, is a low-cost carrier based in the United States. The company focuses on providing affordable air travel to customers while maintaining operational efficiency and cost-effectiveness. Frontier Airlines serves over 100 destinations across the United States, Mexico, Canada, and the Caribbean, with a fleet of more than 100 aircraft.
Insider Buy/Sell Analysis and Relationship with Stock Price
Over the past year, there have been no insider buys for Frontier Group Holdings Inc, while there have been 11 insider sells, including the recent sale by Barry Biffle. This trend of insider selling could be an indication that company insiders believe the stock is overvalued or that they are taking advantage of favorable market conditions to cash in on their holdings.
On the day of Biffle's recent sale, shares of Frontier Group Holdings Inc were trading at $7.81 apiece, giving the stock a market capitalization of $1,791.834 million. The price-earnings ratio of the stock is 26.45, which is higher than the industry median of 12.65 but lower than the company's historical median price-earnings ratio. This suggests that the stock may be overvalued compared to its peers and its own historical valuation.
The GF Value, an intrinsic value estimate developed by GuruFocus, is calculated based on historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow), a GuruFocus adjustment factor based on the company's past returns and growth, and future estimates of business performance from Morningstar analysts. Based on this analysis, it is essential for investors to consider the potential overvaluation of the stock and the trend of insider selling before making any investment decisions.
Conclusion
The recent sale of 23,800 shares by Frontier Group Holdings Inc's President & CEO, Barry Biffle, adds to the trend of insider selling observed over the past year. With no insider buys during the same period and a price-earnings ratio higher than the industry median, investors should exercise caution and conduct thorough research before investing in the company's stock. It is crucial to consider the potential overvaluation and the implications of the ongoing insider selling activity.
