Ares Management (NYSE:ARES) LLC has recently sold a significant portion of its holdings in Frontier Communications (OTC:FTRCQ) Parent, Inc. (NASDAQ:FYBR). According to a recent filing, Ares Management disposed of 575,000 shares over two separate transactions, totaling approximately $19.9 million. The sales occurred on December 6 and December 9, with share prices ranging from $34.6148 to $34.6367. The timing of these sales follows a remarkable 34.85% surge in FYBR's stock price over the past six months, though InvestingPro data indicates the company operates with a significant debt burden.
Following these transactions, Ares Management now holds 35,422,768 shares of Frontier Communications. This move is part of a broader portfolio adjustment by Ares Management, which maintains its position as a significant shareholder in the company valued at $8.62 billion by market capitalization. According to InvestingPro analysis, which offers comprehensive research reports for over 1,400 US stocks, FYBR currently appears overvalued based on its Fair Value metrics.
In other recent news, Frontier Communications shareholders have approved a merger agreement with Verizon Communications (NYSE:VZ), marking a significant step towards becoming a wholly owned subsidiary of Verizon. This news follows Frontier's Q2 2024 report of a 2% revenue increase, reaching $1.48 billion, and a 5% growth in EBITDA. However, the company's stock was downgraded by Raymond (NS:RYMD) James due to concerns about the shareholder vote. This downgrade was echoed by opposition from Carronade Capital and Cooper Investors, who argue that Verizon's offer undervalues Frontier.
In addition to these developments, Frontier secured over $23 million in grants for expanding high-speed fiber broadband service in Connecticut, San Bernardino, and Riverside counties. On the other hand, Verizon Communications maintained a Buy rating from TD (TSX:TD) Cowen following third-quarter results. These events underline the recent developments in both companies.
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