Ares Management (NYSE:ARES) LLC, a prominent investment firm, has reported the sale of shares in Frontier Communications (OTC:FTRCQ) Parent, Inc. (NASDAQ:FYBR) totaling approximately $16.7 million. The transactions took place over two days, with Ares Management selling 240,940 shares on November 20 at an average price of $34.6883 per share, and 239,195 shares on November 21 at an average price of $34.7934 per share. Following these sales, Ares Management holds a significant position in Frontier Communications, retaining 38,126,671 shares. These transactions underscore Ares Management's ongoing involvement in the telecommunications provider.
In other recent news, Frontier Communications' shareholders have given the go-ahead for the company's acquisition by Verizon Communications (NYSE:VZ). This decision comes after Frontier reported a 2% revenue increase in Q2 2024, reaching $1.48 billion, and a 5% growth in EBITDA. However, Raymond (NS:RYMD) James downgraded Frontier's stock due to concerns about the shareholder vote. Opposition has also been voiced by Carronade Capital and Cooper Investors, who argue that Verizon's offer undervalues Frontier.
Furthermore, Frontier secured over $23 million in grants to expand high-speed fiber broadband service in Connecticut, San Bernardino, and Riverside counties. On the other hand, Verizon Communications maintained a Buy rating from TD Cowen following third-quarter results. These are recent developments in the ongoing merger process and the financial performance of both Frontier Communications and Verizon Communications.
InvestingPro Insights
While Ares Management has reduced its position in Frontier Communications Parent, Inc. (NASDAQ:FYBR), the company's stock performance and financial metrics offer a mixed picture for investors. According to InvestingPro data, FYBR has shown a strong return over the last three months, with a 25.54% price total return, and an impressive 66.35% return over the past year. This aligns with the company's large price uptick over the last six months, as noted in one of the InvestingPro Tips.
However, potential investors should be aware of some challenges facing the company. An InvestingPro Tip highlights that FYBR operates with a significant debt burden, which could impact its financial flexibility. Additionally, the company's short-term obligations exceed its liquid assets, suggesting potential liquidity concerns.
From a profitability standpoint, FYBR's situation appears precarious. The company was not profitable over the last twelve months, with a negative diluted EPS of -$0.76. Moreover, analysts do not anticipate the company will be profitable this year, according to another InvestingPro Tip.
It's worth noting that FYBR does not pay a dividend to shareholders, which may be a consideration for income-focused investors. For those interested in a more comprehensive analysis, InvestingPro offers 5 additional tips that could provide further insights into FYBR's financial health and market position.
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