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Ares management sells $9.89m in Frontier Communications stock

Published 11/21/2024, 08:54 AM
FYBR
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Ares Management (NYSE:ARES) LLC, a significant shareholder in Frontier Communications (OTC:FTRCQ) Parent, Inc. (NASDAQ:FYBR), recently executed a substantial sale of the company's common stock. The transactions, which took place over two consecutive days, involved the sale of a total of 283,702 shares.

On November 18, Ares Management sold 87,536 shares at an average price of $34.9194 per share. The following day, November 19, an additional 196,166 shares were sold at an average price of $34.8118 per share. The total value of these transactions amounted to approximately $9.89 million.

Following these sales, Ares Management retains ownership of 38,606,806 shares of Frontier Communications. The transactions were reported as indirect sales, with the nature of ownership detailed in accompanying footnotes.

In other recent news, Frontier Communications' shareholders have approved a merger agreement with Verizon Communications (NYSE:VZ), a significant development in the telecommunications industry. The merger is set to position Frontier as a subsidiary of Verizon, pending regulatory approvals and customary closing conditions. This approval comes after Frontier reported a 2% revenue increase in Q2 2024, reaching $1.48 billion, alongside a 5% growth in EBITDA. However, the company faced a stock downgrade from Raymond (NS:RYMD) James due to concerns about the shareholder vote. Carronade Capital and Cooper Investors have opposed the merger, arguing that Verizon's offer undervalues Frontier. In addition, Frontier secured over $23 million in grants to expand high-speed fiber broadband service in several 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

The recent stock sale by Ares Management LLC provides an interesting backdrop to Frontier Communications Parent, Inc.'s (NASDAQ:FYBR) current financial position. According to InvestingPro data, Frontier's market capitalization stands at $8.64 billion, reflecting its significant presence in the telecommunications sector.

Despite the large stock sale, Frontier has shown impressive price performance. InvestingPro data reveals a strong 66.03% price total return over the past year, and a 30.5% return over the last six months. This positive momentum is further supported by an InvestingPro Tip indicating a "Strong return over the last three months."

However, investors should be aware of some potential challenges. An InvestingPro Tip notes that Frontier "Operates with a significant debt burden," which could impact the company's financial flexibility. Additionally, the company's P/E ratio of -45.91 suggests current profitability concerns, aligning with another InvestingPro Tip that Frontier is "Not profitable over the last twelve months."

For a more comprehensive analysis, InvestingPro offers 10 additional tips for Frontier Communications, providing deeper insights into the company's financial health and market position. These additional tips can help investors make more informed decisions about FYBR stock in light of recent insider selling activity.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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