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 could indicate that insiders believe the stock is overvalued or that they are taking advantage of favorable market conditions to sell their shares.
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 $1,726.281 million. The price-earnings ratio is 25.48, which is higher than the industry median of 12.5 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. Considering these factors, investors should be cautious about buying shares of Frontier Group Holdings Inc at the current price, as the stock may be overvalued.
Conclusion
The recent sale of 23,800 shares by Frontier Group Holdings Inc's President & CEO, Barry Biffle, is part of a larger trend of insider selling over the past year. With no insider buys during the same period and a price-earnings ratio higher than the industry median, investors should be cautious about purchasing shares of Frontier Group Holdings Inc at the current price. It is essential to monitor insider transactions and other relevant financial data to make informed investment decisions.
