Ancient Art Reduces Stake in Frontier Group Holdings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 25 2026
0mins
Should l Buy ULCC?
Source: Fool
- Share Reduction Transaction: On February 17, 2026, Ancient Art, L.P. reported selling 700,000 shares of Frontier Group Holdings, an estimated $3.10 million trade, indicating a strategic reduction in the fourth quarter while still holding over 3.5 million shares, reflecting a long-term confidence in the stock.
- Position Value Change: Following the sale, Ancient Art's position in Frontier is valued at $16.88 million, a decrease of $2.03 million from the previous quarter, showcasing its response strategy to market volatility, even as the holding still represents 3.82% of its total AUM.
- Poor Stock Performance: As of February 17, 2026, Frontier Group Holdings shares were priced at $5.35, down 42.3% over the past year, significantly underperforming the S&P 500 by 51.46 percentage points, highlighting the challenges the company faces in a competitive airline market.
- Investor Focus: Despite Frontier's struggles with inconsistent profitability and disappointing earnings guidance from management, Ancient Art's sale appears to be more about portfolio management rather than a pessimistic outlook on the company's future, potentially attracting investors willing to take risks for a rebound opportunity.
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Analyst Views on ULCC
Wall Street analysts forecast ULCC stock price to rise
9 Analyst Rating
1 Buy
7 Hold
1 Sell
Hold
Current: 3.530
Low
4.00
Averages
5.57
High
8.00
Current: 3.530
Low
4.00
Averages
5.57
High
8.00
About ULCC
Frontier Group Holdings, Inc. is a holding company. The Company operates through its subsidiary, Frontier Airlines, Inc., which is an ultra-low-cost carrier company. The Company offers flights throughout the United States and to select near international destinations in the Americas. It has a fleet of approximately 159 Airbus single-aisle aircraft, consisting of eight A320ceos, 82 A320neos, 21 A321ceos and 48 A321neos. The Company primarily provides air transportation for passengers. It provides passenger airline service primarily to leisure travelers. It combines its fares with flexible optional services for an additional cost. Such additional options include carry-on and checked baggage, advance seat selection, extended-legroom premium seats, priority boarding and ticket changes and cancellations, as well as bundled options combining various optional services. The Company serves approximately 100 airports throughout the United States and international destinations in the Americas.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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