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Ares management sells $28.7m in Frontier Communications stock

Published 2024-12-05, 05:30 p/m
FYBR
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Ares Management (NYSE:ARES) LLC, a significant shareholder in Frontier Communications (OTC:FTRCQ) Parent, Inc. (NASDAQ:FYBR), has reported selling shares worth approximately $28.7 million, according to a recent SEC filing. The stock has shown remarkable strength, gaining over 54% in the past year, though InvestingPro data indicates the company operates with a significant debt burden of $11.6 billion. The transactions, which took place on December 3 and December 4, involved the sale of 830,000 shares at prices ranging from $34.519 to $34.5913 per share. Following these sales, Ares Management's holdings in Frontier Communications have decreased, with a remaining total of 35,997,768 shares. The sales were carried out by various Ares-related entities, including ACOF VI Frontier AIV A10, L.P. and ACOF VI Frontier AIV B1, L.P., among others. Analyst targets for FYBR range from $37 to $64 per share, suggesting potential upside. For deeper insights into FYBR's financial health and growth prospects, access the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Frontier Communications' shareholders have overwhelmingly approved a merger agreement with Verizon Communications (NYSE:VZ), a pivotal development in the process of becoming a wholly owned subsidiary of the telecommunications titan. The merger, initially announced in 2024, is expected to further consolidate the telecommunications industry, subject to regulatory approvals and customary closing conditions.

Frontier Communications reported a 2% revenue increase in Q2 2024, reaching $1.48 billion, with a 5% growth in EBITDA. However, the company faced a stock downgrade from Raymond (NS:RYMD) James due to concerns about the shareholder vote. Opposition from Carronade Capital and Cooper Investors, arguing that Verizon's offer undervalues Frontier, has also surfaced.

In addition, 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 the recent developments for both Frontier Communications and Verizon Communications.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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