Ares Management (NYSE:ARES) LLC, a significant shareholder in Frontier Communications (OTC:FTRCQ) Parent, Inc. (NASDAQ:FYBR), has sold shares worth approximately $9.89 million over two days, as reported in recent SEC filings. The sales, which took place on November 18 and 19, involved a total of 283,702 shares, with prices ranging from $34.8118 to $34.9194 per share. Following these transactions, Ares Management and its affiliated 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 towards Frontier becoming a wholly owned subsidiary of Verizon. This development follows Frontier's Q2 2024 report of a 2% revenue increase, reaching $1.48 billion, and a 5% growth in EBITDA. However, Raymond (NS:RYMD) James has downgraded Frontier's stock due to concerns about the shareholder vote. Opposition has also arisen from 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 to expand high-speed fiber broadband service in Connecticut, San Bernardino, and Riverside counties. On the other hand, Verizon Communications retained a Buy rating from TD Cowen after reporting third-quarter results. These are recent developments in the ongoing process of the merger, which is subject to regulatory approvals and customary closing conditions.
InvestingPro Insights
While Ares Management LLC has reduced its stake in Frontier Communications Parent, Inc. (NASDAQ:FYBR), the company's stock has shown strong performance recently. According to InvestingPro data, FYBR has experienced a robust 21.03% price total return over the past three months and an impressive 66.03% return over the last year. This upward trend is further evidenced by the stock trading at 88.5% of its 52-week high.
Despite the positive price momentum, InvestingPro Tips highlight some potential concerns for investors. The company operates with a significant debt burden, and short-term obligations exceed liquid assets. Additionally, analysts do not anticipate the company will be profitable this year, with net income expected to drop.
It's worth noting that FYBR's revenue for the last twelve months as of Q3 2024 stood at $5,857 million, with a modest revenue growth of 1.65%. The company's EBITDA for the same period was $2,262 million, showing a 7.1% growth.
For investors 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.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.