NEW YORK - JANA Partners, an investor in Frontier Communications (OTC:FTRCQ) Parent, Inc. (NASDAQ: FYBR), has expressed support for the company's recent announcement that it is undertaking a thorough review of strategies to enhance shareholder value. Frontier's Board of Directors and management team are leading a formal assessment of all potential opportunities.
JANA Partners, established by Barry Rosenstein in 2001, specializes in investing in undervalued public companies and works with their management teams and boards to increase shareholder value. The firm's approach often involves active engagement with companies to identify and implement value-unlocking strategies.
The review by Frontier Communications comes at a time when the company is experiencing ongoing business momentum. JANA has voiced confidence in the ability of Frontier's Board and management to effectively execute this review process.
The information in this article is based on a press release.
InvestingPro Insights
In light of JANA Partners' support for Frontier Communications' strategic review, current metrics and insights from InvestingPro provide additional context for investors considering the company's stock. Frontier Communications (NASDAQ: FYBR) currently operates with a market capitalization of approximately $5.93 billion. The company's price-to-earnings (P/E) ratio stands at 35.81, reflecting a high earnings multiple, which aligns with one of the InvestingPro Tips indicating that the stock is trading at a premium. Adjusting for the last twelve months as of Q3 2023, the P/E ratio moderates to 25.68.
Despite a slight revenue decline of 2.22% over the last twelve months, the company maintains a robust gross profit margin of 62.84%. This suggests that while top-line growth may be challenged, the company is effective in managing its cost of goods sold. The InvestingPro Tips also highlight that Frontier Communications has been profitable over the last twelve months, which is corroborated by a gross profit of $3.621 billion and an operating income of $760 million for the same period.
For investors tracking stock performance, Frontier has seen a large price uptick over the last six months, with a total return of 34.69%. This is significant, especially when considering the InvestingPro Tip that the company has delivered a strong return over the last three months. However, it's worth noting that the company does not pay a dividend, which may influence the investment decisions of income-focused shareholders.
For a deeper dive into Frontier Communications' financial health and stock performance, InvestingPro offers additional insights. Subscribers to InvestingPro+ can access a wealth of InvestingPro Tips, with over 10 additional tips available for this company alone. Now is an opportune time to subscribe, as InvestingPro is currently running a special New Year sale with discounts of up to 50%. Use coupon code SFY24 to get an additional 10% off a 2-year InvestingPro+ subscription, or SFY241 to get an additional 10% off a 1-year subscription, and gain access to valuable investment insights that could guide your next move in the market.
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