On March 17, 2025, ARES MANAGEMENT LLC (Trades, Portfolio) made a significant move by acquiring an additional 22,540,061 shares of Frontier Communications Parent Inc (NASDAQ: FYBR). This transaction increased the firm's total holdings in the company to 43,345,217 shares. The shares were acquired at a trade price of $35.76 each, marking a substantial 22.09% increase in the firm's position in Frontier Communications. This strategic acquisition now represents 42.47% of ARES MANAGEMENT LLC (Trades, Portfolio)'s portfolio, highlighting the firm's confidence in the potential of Frontier Communications.
Profile of ARES MANAGEMENT LLC (Trades, Portfolio)
ARES MANAGEMENT LLC (Trades, Portfolio) is headquartered at 2000 Avenue of the Stars, Los Angeles, CA 90067. While the firm's specific investment philosophy is not detailed, its top holdings include Golub Capital BDC Inc (GBDC, Financial), Clear Channel Outdoor Holdings Inc (CCO, Financial), Frontier Communications Parent Inc (FYBR, Financial), Global Business Travel Group Inc (GBTG, Financial), and Savers Value Village Inc (SVV, Financial). The firm manages an equity value of $2.84 billion, with a focus on sectors such as Consumer Cyclical and Communication Services.
Details of the Stock Transaction
The recent acquisition of Frontier Communications shares by ARES MANAGEMENT LLC (Trades, Portfolio) was executed at a price of $35.76 per share. Post-transaction, the firm holds a total of 43,345,217 shares, which now constitute 42.47% of its portfolio. This move reflects a strategic decision to bolster its position in the telecommunications sector, particularly in a company that offers a diverse range of services.
Overview of Frontier Communications Parent Inc
Frontier Communications Parent Inc is a prominent provider of broadband, voice, and technology services. With a market capitalization of $8.95 billion, the company operates in various segments, including Data and Internet services, Video services, and Voice services. As of the latest data, the stock is trading at $35.825. Despite its robust market presence, the stock is considered modestly overvalued with a GF Value of $28.97, resulting in a Price to GF Value ratio of 1.24.
Financial Metrics and Valuation
Frontier Communications has a GF Score of 57/100, indicating poor future performance potential. The company's Balance Sheet Rank is 3/10, and its Profitability Rank is 4/10. The Growth Rank is notably low at 0/10, while the Momentum Rank is relatively high at 9/10. The company's Altman Z score is 0.68, and the Piotroski F-Score is 5, reflecting a challenging financial position with a cash to debt ratio of 0.07.
Performance and Growth Indicators
Frontier Communications' financial performance is characterized by a Operating Margin growth of 0.00% over the past three years, indicating stagnant growth. The company's revenue, EBITDA, and earnings growth over the same period also remain at 0.00%. Despite these challenges, the stock has shown a year-to-date price change of 2.86%, suggesting some positive momentum in the market.
Other Notable Gurus Holding FYBR
Among the notable investors in Frontier Communications, GAMCO Investors holds the largest share percentage. Additionally, renowned investor Joel Greenblatt (Trades, Portfolio) is also a stakeholder in the company, indicating a level of confidence among seasoned investors in the potential of Frontier Communications.
Conclusion
ARES MANAGEMENT LLC (Trades, Portfolio)'s recent acquisition of Frontier Communications shares underscores a strategic addition to its portfolio, reflecting a significant commitment to the telecommunications sector. For value investors, the current valuation and performance metrics of Frontier Communications present a mixed picture. While the stock is modestly overvalued, the firm's substantial investment suggests a belief in the company's long-term potential. Investors should consider these factors alongside the company's financial metrics and market position when evaluating the stock's future prospects.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
