Six Flags Entertainment (NYSE:FUN) Shares Down 6.6% on Disappointing Earnings

Six Flags Entertainment Corporation (NYSE:FUN)’s share price was down 6.6% on Monday after the company announced weaker than expected quarterly earnings. The company traded as low as $16.65 and last traded at $16.84. Approximately 991,515 shares traded hands during trading, a decline of 64% from the average daily volume of 2,782,509 shares. The stock had previously closed at $18.03.

The company reported ($11.77) earnings per share for the quarter, missing analysts’ consensus estimates of $2.24 by ($14.01). Six Flags Entertainment had a negative return on equity of 1.00% and a negative net margin of 14.92%.The business had revenue of $1.32 billion during the quarter, compared to the consensus estimate of $1.34 billion. During the same quarter in the prior year, the company earned $4.21 earnings per share. Six Flags Entertainment’s revenue was down 2.3% compared to the same quarter last year.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on the company. Capital One Financial set a $28.00 price target on Six Flags Entertainment in a research note on Tuesday, October 7th. Stifel Nicolaus lowered their price target on shares of Six Flags Entertainment from $36.00 to $29.00 and set a “buy” rating for the company in a research note on Monday. UBS Group decreased their price objective on Six Flags Entertainment from $40.00 to $34.00 and set a “buy” rating on the stock in a report on Tuesday, August 19th. Morgan Stanley reiterated an “equal weight” rating and issued a $20.00 price objective (down previously from $30.00) on shares of Six Flags Entertainment in a research report on Monday. Finally, Oppenheimer cut their price target on shares of Six Flags Entertainment from $60.00 to $40.00 and set an “outperform” rating on the stock in a report on Thursday, September 4th. Eight research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, Six Flags Entertainment currently has a consensus rating of “Hold” and a consensus target price of $31.43.

Institutional Investors Weigh In On Six Flags Entertainment

A number of institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. lifted its holdings in shares of Six Flags Entertainment by 0.5% during the third quarter. Vanguard Group Inc. now owns 10,067,759 shares of the company’s stock valued at $228,739,000 after purchasing an additional 53,111 shares in the last quarter. Darlington Partners Capital Management LP grew its position in Six Flags Entertainment by 20.2% during the second quarter. Darlington Partners Capital Management LP now owns 8,700,000 shares of the company’s stock valued at $264,741,000 after buying an additional 1,460,000 shares during the period. Dendur Capital LP increased its holdings in Six Flags Entertainment by 41.1% during the second quarter. Dendur Capital LP now owns 4,433,500 shares of the company’s stock valued at $134,911,000 after buying an additional 1,292,500 shares during the last quarter. Rush Island Management LP bought a new position in Six Flags Entertainment in the second quarter worth approximately $115,454,000. Finally, State Street Corp grew its position in shares of Six Flags Entertainment by 0.8% during the 2nd quarter. State Street Corp now owns 3,465,487 shares of the company’s stock valued at $105,455,000 after acquiring an additional 27,848 shares during the period. Hedge funds and other institutional investors own 64.65% of the company’s stock.

Six Flags Entertainment Price Performance

The firm has a 50 day moving average price of $22.62 and a 200 day moving average price of $28.16. The stock has a market capitalization of $1.71 billion, a PE ratio of -3.46 and a beta of 0.69. The company has a current ratio of 0.52, a quick ratio of 0.42 and a debt-to-equity ratio of 2.97.

About Six Flags Entertainment

Cedar Fair, L.P. owns and operates amusement and water parks, as well as complementary resort facilities. Its amusement parks include Cedar Point located on Lake Erie between Cleveland and Toledo in Sandusky, Ohio; Knott's Berry Farm near Los Angeles, California; Canada's Wonderland near Toronto, Ontario; Kings Island near Cincinnati, Ohio; Carowinds in Charlotte, North Carolina; Kings Dominion situated near Richmond, Virginia; California's Great America located in Santa Clara, California; Dorney Park in Pennsylvania; Worlds of Fun located in Kansas City, Missouri; Valleyfair situated near Minneapolis/St.