Ares Management (NYSE:ARES) LLC, a significant stakeholder in Frontier Communications (OTC:FTRCQ) Parent, Inc. (NASDAQ:FYBR), has disclosed the sale of shares valued at approximately $9.89 million. The transactions, which took place on November 18 and 19, involved the sale of a total of 283,702 shares of common stock. The shares were sold at prices ranging from $34.8118 to $34.9194 per share. Following these transactions, Ares Management and its associated entities continue to hold a substantial number of shares in the telecommunications company.
In other recent news, Frontier Communications' shareholders have approved a merger agreement with Verizon Communications (NYSE:VZ), marking a significant step in becoming a wholly owned subsidiary of the telecommunications giant. This decision came after Frontier reported a 2% revenue increase in Q2 2024, reaching $1.48 billion, and a 5% growth in EBITDA. However, the company faced a stock downgrade from Raymond (NS:RYMD) James due to concerns about the shareholder vote. Opposition from Carronade Capital and Cooper Investors was also noted, arguing that Verizon's offer undervalues Frontier. Frontier was also awarded seven ConneCTed Communities grants and secured over $23 million in grants for high-speed fiber broadband service expansion in specific areas. Meanwhile, Verizon Communications maintained a Buy rating from TD Cowen following third-quarter results. These are recent developments in the companies mentioned.
InvestingPro Insights
While Ares Management LLC has reduced its stake in Frontier Communications Parent, Inc. (NASDAQ:FYBR), recent data from InvestingPro reveals a mixed picture for the company. Despite the recent share sale by a major stakeholder, FYBR has demonstrated strong market performance, with a 66.03% price total return over the past year and a 30.5% return over the last six months.
However, investors should be aware of some potential challenges. According to InvestingPro Tips, FYBR operates with a significant debt burden, and short-term obligations exceed liquid assets. This financial structure could impact the company's flexibility and risk profile. Additionally, analysts have revised their earnings expectations downward for the upcoming period, suggesting some near-term headwinds.
On the operational front, FYBR reported revenue of $5,857 million in the last twelve months as of Q3 2023, with a modest revenue growth of 1.65%. The company's EBITDA grew by 7.1% during the same period, reaching $2,262 million. These figures indicate that while FYBR is generating substantial revenue, growth rates are moderate.
It's worth noting that FYBR does not currently pay a dividend to shareholders, which may be a consideration for income-focused investors. For those seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for FYBR, providing a deeper understanding of the company's financial health and market position.
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