Frontier’s Largest Investor Keeps Buying Up Stock
Frontier Communications
FYBR
-4.81%
stock has lost about a third of its value so far this year, but the communications company’s largest investor continues to buy up shares.
Frontier stock (ticker: FYBR) is off its lows so far in 2023, but it has struggled to build upward momentum. Frontier emerged from bankruptcy in 2021, focused on converting its legacy telecom network to modern fiberoptics. But the stock essentially traded sideways until this year, when a decisive slide set in. With shares in the red, Barron’s recommended buying Frontier stock in July. This script changed earlier this month, when activist investor Jana Partners disclosed that it had invested in Frontier, and planned to push for the sale of the company.
Ares Management
ARES
-0.74%
has been a steady buyer of Frontier stock since March. So far this year, It has paid more than $75 million for 3.7 million shares, an average price of $20.31 each. Ares’ latest purchase was on Oct. 18, when it paid $2.8 million for 150,000 shares, an average price of $18.93 each. According to a form it filed with the Securities and Exchange Commission, Ares now owns 38.9 million Frontier shares. It remains Frontier’s largest shareholder with a stake of nearly 16%, according to S&P Global Market Intelligence.
Ares didn’t immediately respond to a request for comment.
In response to Jana’s investment, Frontier has said that its board and management “are focused on driving long-term value for our shareholders, employees, and customers and continue to take actions that enable us to deliver on this objective.”