Ares Management (NYSE:ARES) LLC, along with its associated investment funds, has reported the sale of Frontier Communications (OTC:FTRCQ) Parent, Inc. (NASDAQ:FYBR) stock, according to a recent SEC filing. The sales occurred on November 22 and November 25, with a total of 588,824 shares sold at prices ranging from $34.815 to $34.8771 per share. This transaction amounted to a total value of approximately $20.5 million. Following these transactions, the entities collectively hold 37,537,847 shares of Frontier Communications.
In other recent news, Frontier Communications' shareholders have approved a merger agreement with Verizon Communications (NYSE:VZ), marking a significant milestone in the process of Frontier becoming a wholly owned subsidiary of Verizon. This follows Frontier's Q2 2024 earnings report, which showed a 2% revenue increase, reaching $1.48 billion, and a 5% growth in EBITDA. However, the company faced a stock downgrade from Raymond (NS:RYMD) James due to concerns about the shareholder vote. This comes amidst opposition from Carronade Capital and Cooper Investors, who argue that Verizon's offer undervalues Frontier.
In other developments, Frontier secured over $23 million in grants to expand high-speed fiber broadband service in Connecticut, San Bernardino, and Riverside counties. Meanwhile, Verizon Communications maintained a Buy rating from TD (TSX:TD) Cowen following third-quarter results. These are recent developments in the companies mentioned.
InvestingPro Insights
While Ares Management LLC has reduced its position in Frontier Communications Parent, Inc. (NASDAQ:FYBR), recent market data from InvestingPro offers additional context to this move. Despite the stock sale, FYBR has demonstrated strong performance, with a 62.91% price total return over the past year and a 36.36% return over the last six months.
However, investors should note that FYBR operates with a significant debt burden, as highlighted by one of the InvestingPro Tips. This financial structure could be a factor in the decision-making process of large shareholders like Ares Management.
The company's financials present a mixed picture. While FYBR boasts a robust revenue of $5.86 billion for the last twelve months as of Q3 2023, it's currently not profitable, with a negative P/E ratio of -72.44. This aligns with another InvestingPro Tip indicating that analysts do not anticipate the company will be profitable this year.
For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for FYBR, providing a deeper understanding of the company's financial health and market position.
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