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 company. The transactions, disclosed in a recent filing, involved the sale of 519,940 shares of common stock over two days. The telecommunications company, currently valued at $8.59 billion, has seen its stock surge over 32% in the past six months despite carrying a substantial debt load of $11.62 billion.
The shares were sold at prices ranging from $34.7489 to $34.8045, totaling approximately $18.07 million. Following these sales, Ares Management and its affiliates now hold 36,827,768 shares of Frontier Communications. According to InvestingPro analysis, FYBR currently appears overvalued, with concerning metrics including a current ratio of 0.77, indicating potential liquidity challenges.
The sales were carried out by various affiliates of Ares Management, including ASOF Frontier AIV A8, L.P., ASOF Frontier AIV A9, L.P., and several others, all managed by Ares Management LLC. These entities are part of a larger group of funds and holdings under Ares Management's umbrella, which collectively manage significant investments in various sectors.
Ares Management's decision to sell this portion of its stake comes as Frontier Communications continues to navigate the telecommunications market. The transactions were executed on November 29 and December 2, 2024, and reflect ongoing adjustments in Ares Management's investment strategy.
In other recent news, Frontier Communications' shareholders have approved the company's merger with Verizon Communications (NYSE:VZ), a significant step towards becoming a wholly-owned subsidiary of Verizon. This approval comes on the heels of Frontier's Q2 2024 report, which showed a 2% revenue increase, reaching $1.48 billion, and a 5% growth in EBITDA. However, the merger has been criticized by Carronade Capital and Cooper Investors, who argue that Verizon's offer undervalues Frontier.
Frontier also faced a stock downgrade from Raymond (NS:RYMD) James due to concerns about the shareholder vote. Despite this, Frontier secured over $23 million in grants to expand high-speed fiber broadband service in Connecticut, San Bernardino, and Riverside counties. In parallel, Verizon Communications maintained a Buy rating from TD Cowen following its third-quarter results.
These recent developments highlight the ongoing changes in the telecommunications industry and the strategic moves by companies like Frontier Communications and Verizon Communications.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.