Ares management reports $6.6 million sale of Frontier Communications stock

Ares Management (NYSE:ARES) LLC, a significant stakeholder in Frontier Communications (OTC:FTRCQ) Parent, Inc. (NASDAQ:FYBR), disclosed the sale of shares worth approximately $6.6 million, according to a recent SEC filing. The transactions, which took place on November 26 and 27, involved the sale of a combined total of 190,139 shares at prices ranging from $34.8039 to $34.8522 per share. The timing is notable as FYBR's stock has shown remarkable strength, with a 35% gain over the past six months and trading near its 52-week high of $39.21.

Following these transactions, Ares Management and its affiliated entities maintain ownership of 37,347,708 shares in Frontier Communications, representing a significant portion of the company's $8.67 billion market capitalization. The transactions were executed by various Ares-affiliated funds, including ACOF VI Frontier AIV A10, L.P., and ASOF Frontier AIV A1, L.P., among others. According to InvestingPro data, Frontier operates with a substantial debt burden, with total debt reaching $11.6 billion as of the latest quarter.

The filing notes that Ares Management LLC and its affiliates collectively hold over ten percent of Frontier Communications' shares, affirming their status as significant investors in the telecommunications company. InvestingPro subscribers can access additional insights, including 8 more key tips about FYBR's financial health and growth prospects, along with a comprehensive Pro Research Report available for this telecommunications provider.

In other recent news, Frontier Communications' shareholders have overwhelmingly approved the company's merger with Verizon Communications (NYSE:VZ), a crucial step in Frontier becoming a wholly owned subsidiary of Verizon. The approval came after Frontier reported a 2% revenue increase in Q2 2024, reaching $1.48 billion, alongside 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.

On the other hand, Verizon Communications maintained a Buy rating from TD Cowen following third-quarter results. Frontier was also awarded seven ConneCTed Communities grants and secured over $23 million in grants to expand high-speed fiber broadband service in Connecticut, San Bernardino, and Riverside counties. These are the recent developments for Frontier Communications and Verizon Communications.

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