ARES MANAGEMENT LLC, a renowned investment firm, recently expanded its portfolio with the acquisition of shares in Frontier Communications Parent Inc. This article provides an in-depth analysis of the transaction, the profiles of the guru and the traded company, and the potential implications of this investment.
Details of the Transaction
On August 24, 2023, ARES MANAGEMENT LLC added 37,557 shares of Frontier Communications Parent Inc to its portfolio. The shares were acquired at a price of $15.27 each. This transaction had a 0.01% impact on the guru's portfolio, increasing its total holdings in the company to 38,355,498 shares. Following this acquisition, Frontier Communications Parent Inc now represents 12.12% of the guru's portfolio and 15.61% of the company's total shares.
Profile of the Guru
ARES MANAGEMENT LLC is a Los Angeles-based 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). With an equity of $4.83 billion, the firm primarily invests in the Consumer Cyclical and Communication Services sectors.
Overview of the Traded Stock
Frontier Communications Parent Inc (FYBR, Financial) is a US-based company that 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, operates in several segments including Data and Internet services, Other, Subsidy and other revenue, Video services, and Voice services. As of the date of this article, the company has a market capitalization of $3.71 billion.
Financial Analysis of the Traded Stock
Frontier Communications Parent Inc currently trades at $15.1 per share, with a PE ratio of 13.48. The company's GF Score is 22/100, indicating a poor future performance potential. The company's Financial Strength and Profitability Rank are both 4/10, while its Growth Rank is 0/10. The company's interest coverage is 1.09, and its Altman Z score is 0.66. The company's Piotroski F-Score is 6, indicating a stable financial situation.
Largest Guru Holder of the Traded Stock
The largest guru holder of Frontier Communications Parent Inc is Gotham Asset Management, LLC.
Conclusion
The acquisition of Frontier Communications Parent Inc by ARES MANAGEMENT LLC is a strategic move that expands the guru's portfolio in the Communication Services sector. Despite the company's low GF Score and financial ranks, the guru's investment could potentially yield significant returns given the right market conditions. However, investors should conduct thorough research and consider the company's financial health and market position before making investment decisions.
