ARES MANAGEMENT LLC Acquires Stake in Frontier Communications Parent Inc
On October 2, 2023, ARES MANAGEMENT LLC (Trades, Portfolio), a Los Angeles-based investment firm, added 150,000 shares of Frontier Communications Parent Inc (NASDAQ:FYBR) to its portfolio. This acquisition, which was executed at a trade price of $14.8 per share, increased the firm's total holdings in FYBR to 38,762,895 shares. This transaction represents 11.86% of the firm's portfolio and 15.77% of FYBR's total shares.
About ARES MANAGEMENT LLC (Trades, Portfolio)
ARES MANAGEMENT LLC (Trades, Portfolio) is a renowned investment firm located at 2000 Avenue of the Stars, Los Angeles, CA 90067. The firm's investment philosophy is centered around value investing, with a focus on companies in the Consumer Cyclical and Communication Services sectors. As of the date of this article, the firm holds 40 stocks in its portfolio, with a total equity of $4.83 billion. Its top holdings include Clear Channel Outdoor Holdings Inc (NYSE:CCO), Albertsons Companies Inc (NYSE:ACI), California Resources Corp (NYSE:CRC), Frontier Communications Parent Inc (NASDAQ:FYBR), and Savers Value Village Inc (NYSE:SVV).
Frontier Communications Parent Inc Overview
Frontier Communications Parent Inc (NASDAQ:FYBR) is a US-based company that provides a range of services to residential and business customers over its fiber-optic and copper networks. These services include video, high-speed internet, advanced voice, and Frontier Secure digital protection solutions. The company also offers communication solutions to small, medium, and enterprise businesses. As of October 5, 2023, the company has a market capitalization of $3.46 billion and a stock price of $14.06.
Stock Performance Analysis
Frontier Communications Parent Inc has a PE percentage of 12.55, indicating that the company is profitable. However, the company's stock has experienced a decline since its IPO, with a decrease of 45.52% since its initial public offering on May 4, 2021. The year-to-date price change ratio stands at -44.25%. The company's GF Score is 22/100, suggesting a poor future performance potential.
Financial Health Evaluation
Frontier Communications Parent Inc has a Financial Strength rank of 4/10 and a Profitability Rank of 4/10. The company's Growth Rank is 0/10, indicating no significant growth in recent years. The company's GF Value Rank and Momentum Rank are also 0/10, suggesting that the stock is currently not undervalued and lacks momentum.
Financial Ratios Assessment
The company's Piotroski F-Score is 6, indicating a stable financial situation. However, its Altman Z score of 0.66 suggests potential financial distress. The company's cash to debt ratio is 0.13, and its interest coverage is 1.09, indicating that the company has sufficient earnings to cover its interest expenses.
Comparison with the Largest Guru
The largest guru holding shares in Frontier Communications Parent Inc is Gotham Asset Management, LLC. However, the exact share percentage held by Gotham Asset Management, LLC is not available at the moment. ARES MANAGEMENT LLC (Trades, Portfolio)'s recent acquisition of FYBR shares further solidifies its position in the company and demonstrates its confidence in FYBR's potential.
In conclusion, ARES MANAGEMENT LLC (Trades, Portfolio)'s recent acquisition of FYBR shares represents a significant addition to its portfolio. Despite FYBR's recent performance and financial health indicators, ARES MANAGEMENT LLC (Trades, Portfolio)'s investment suggests a belief in the company's long-term potential. As always, investors are advised to conduct their own comprehensive analysis before making investment decisions.
This article first appeared on GuruFocus.
