On September 11, 2023, ARES MANAGEMENT LLC, a Los Angeles-based investment firm, added 150,000 shares of Frontier Communications Parent Inc to its portfolio. This article provides an in-depth analysis of this transaction, the profiles of the guru and the traded company, and the potential implications for value investors.
Details of the Transaction
ARES MANAGEMENT LLC's recent acquisition of Frontier Communications Parent Inc shares was executed at a trade price of $14.52 per share. This addition increased the firm's total holdings in the company to 38,512,895 shares, representing 15.67% of the traded stock. The transaction had a 0.05% impact on the firm's portfolio and increased its position in the traded stock by 0.39%.
Profile of ARES MANAGEMENT LLC
ARES MANAGEMENT LLC, located at 2000 Avenue of the Stars, Los Angeles, CA 90067, is an investment firm with a diverse portfolio of 40 stocks. The firm's top holdings include Clear Channel Outdoor Holdings Inc(CCO, Financial), Albertsons Companies Inc(ACI, Financial), California Resources Corp(CRC, Financial), Frontier Communications Parent Inc(FYBR, Financial), and Savers Value Village Inc(SVV, Financial). The firm's equity stands at $4.83 billion, with a significant focus on the Consumer Cyclical and Communication Services sectors.
Overview of Frontier Communications Parent Inc
Frontier Communications Parent Inc (FYBR, Financial), a US-based company, offers a variety 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, which went public on May 4, 2021, has a market capitalization of $3.55 billion. As of September 14, 2023, the stock's price stands at $14.45, with a PE percentage of 12.90. The company's GF Score is 22/100, indicating a poor future performance potential.
Analysis of the Stock's Financial Health
Frontier Communications Parent Inc's financial strength is rated 4/10, with a profitability rank of 4/10. The company's growth rank is not applicable due to insufficient data. The company's interest coverage is 1.09, and its cash to debt ratio is 0.13, ranking 266th in the industry. The company's Altman Z score is 0.65, and its Piotroski F-Score is 6, indicating a stable financial situation.
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 this time. ARES MANAGEMENT LLC's recent acquisition further solidifies its position in the traded stock.
Conclusion
In conclusion, ARES MANAGEMENT LLC's recent acquisition of Frontier Communications Parent Inc shares represents a strategic move to strengthen its position in the Communication Services sector. Despite the traded company's low GF Score and financial strength, the firm's investment could yield significant returns if the company's performance improves. Value investors should monitor this transaction and the traded company's financial health closely.
