Ares Management (NYSE:ARES) LLC, a significant stakeholder in Frontier Communications (OTC:FTRCQ) Parent, Inc. (NASDAQ:FYBR), has reported the sale of shares valued at approximately $18.07 million. The telecommunications company, currently valued at $8.59 billion, has seen its stock surge over 32% in the past six months despite operating with a substantial debt burden of $11.62 billion. The transactions, dated November 29 and December 2, involved the sale of 519,940 shares at prices ranging from $34.7489 to $34.8045 per share. Following these transactions, Ares Management and its affiliates maintain ownership of over 36.8 million shares in the telecommunications company. According to InvestingPro, which offers comprehensive analysis of 1,400+ stocks through its Pro Research Reports, FYBR currently shows signs of being overvalued at its current trading level.
In other recent news, Frontier Communications' shareholders have approved a merger agreement with Verizon Communications (NYSE:VZ), a significant development in the telecommunications industry. This approval comes after a 2% revenue increase in Q2 2024, reaching $1.48 billion, alongside a 5% growth in EBITDA. However, Raymond (NS:RYMD) James has downgraded Frontier's stock due to concerns about the shareholder vote. Opposition to the merger has been voiced by Carronade Capital and Cooper Investors, who argue that Verizon's offer undervalues Frontier.
In addition to the merger, Frontier was 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. Meanwhile, Verizon Communications maintained a Buy rating from TD Cowen following third-quarter results. These are the recent developments for both Frontier Communications and Verizon Communications.
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