Ares Management (NYSE:ARES) LLC, a significant shareholder in Frontier Communications (OTC:FTRCQ) Parent, Inc. (NASDAQ:FYBR), has recently sold a substantial portion of its holdings in the telecommunications company. According to a Form 4 filing with the Securities and Exchange Commission, Ares Management LLC disposed of shares valued at approximately $6.6 million. The sale comes as FYBR's stock has shown remarkable strength, posting a 35.45% return over the past six months and trading near $34.81, significantly above its 52-week low of $20.51.InvestingPro analysis indicates the company is currently trading above its Fair Value, with multiple factors affecting its financial health score.
The transactions occurred over two days. On November 26, 106,648 shares were sold at an average price of $34.8522 per share. The following day, November 27, an additional 83,491 shares were sold at an average price of $34.8039 per share. These transactions resulted in a total sale of 190,139 shares in the company, which currently maintains a market capitalization of $8.67 billion despite facing challenges with profitability, reporting a loss per share of $0.76 over the last twelve months.
Following these sales, Ares Management LLC and its affiliates continue to hold a significant position in Frontier Communications, with 37,347,708 shares remaining. The transactions were part of a broader strategy by Ares Management LLC, which is known for its active portfolio management. The company operates with a significant debt burden, with total debt of $11.6 billion as of the most recent quarter.
In other recent news, Frontier Communications' shareholders have approved a merger with Verizon Communications (NYSE:VZ), a significant step in the process of becoming a wholly owned subsidiary of Verizon. Frontier reported a 2% revenue increase in Q2 2024, reaching $1.48 billion, alongside a 5% growth in EBITDA. However, Frontier faced a stock downgrade from Raymond (NS:RYMD) James due to concerns about the shareholder vote. Opposition has been voiced by Carronade Capital and Cooper Investors, who argue that Verizon's offer undervalues Frontier.
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. On the other hand, Verizon Communications maintained a Buy rating from TD Cowen following third-quarter results. These are some of the recent developments for Frontier Communications and Verizon Communications.
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