ARES MANAGEMENT LLC (Trades, Portfolio), a prominent investment firm, recently expanded its stake in Frontier Communications Parent Inc. The transaction, which took place on September 15, 2023, saw the firm add 100,000 shares to its portfolio. This article provides an in-depth analysis of the transaction, the profiles of the guru and the traded company, and the potential implications of the trade.
Details of the Transaction
The transaction involved the acquisition of 100,000 shares at a traded price of $14.79 per share. This addition increased ARES MANAGEMENT LLC (Trades, Portfolio)'s total holdings in Frontier Communications Parent Inc to 38,612,895 shares, representing 15.71% of the company's shares. The transaction had a 0.03% impact on the guru's portfolio, with the traded stock now accounting for 11.81% of the portfolio.
Profile of the Guru: ARES MANAGEMENT LLC (Trades, Portfolio)
ARES MANAGEMENT LLC (Trades, Portfolio) is a renowned investment firm based in Los Angeles, California. The firm manages a diverse portfolio of 40 stocks, with a total equity of $4.83 billion. Its 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 investments are primarily concentrated in the Consumer Cyclical and Communication Services sectors. 
Overview of the Traded Stock: Frontier Communications Parent Inc
Frontier Communications Parent Inc, listed under the symbol FYBR, is a US-based company that offers a variety of services to residential and business customers over its fiber-optic and copper networks. The company, which went public on May 4, 2021, provides video, high-speed internet, advanced voice, and Frontier Secure digital protection solutions. As of September 20, 2023, the company has a market capitalization of $3.72 billion and a PE ratio of 13.51. However, due to insufficient data, the GF Value of the stock cannot be evaluated. 
Performance of the Traded Stock
Since the transaction, the stock has gained 2.3%, trading at $15.13 as of September 20, 2023. However, the stock has experienced a significant decline of 41.38% since its IPO and a year-to-date change of -40.01%. The stock's GF Score is 22/100, indicating poor future performance potential. The stock's Financial Strength, Profitability Rank, Growth Rank, GF Value Rank, and Momentum Rank are all low, further indicating potential challenges in the future.
Financial Health of the Traded Stock
Frontier Communications Parent Inc has a Piotroski F-Score of 6 and an Altman Z score of 0.65, indicating moderate financial health. The company's cash to debt ratio is 0.13, and its interest coverage is 1.09. The company's ROE and ROA are 5.47 and 1.48, respectively.
Largest Guru Holding the Traded Stock
The largest guru holding Frontier Communications Parent Inc is Gotham Asset Management, LLC.
Conclusion
The recent acquisition by ARES MANAGEMENT LLC (Trades, Portfolio) reflects the firm's confidence in Frontier Communications Parent Inc's potential despite the stock's recent performance challenges. The transaction has further solidified the firm's position in the company, potentially influencing the stock's future performance and the firm's portfolio. However, given the stock's low GF Score and financial health indicators, investors should exercise caution and conduct thorough research before making investment decisions.
