Shares of Six Flags Entertainment Corporation (NYSE:FUN – Get Free Report) dropped 12.1% during trading on Wednesday. The stock traded as low as $9.05 and last traded at $8.9650. 5,407,161 shares changed hands during trading, an increase of 135% from the average session volume of 2,298,849 shares. The stock had previously closed at $10.20.
Six Flags Entertainment News Roundup
Here are the key news stories impacting Six Flags Entertainment this week:
- Positive Sentiment: Analyst rating improved: Zacks Research upgraded Six Flags from “strong sell” to “hold.” The change may provide limited support, although it does not represent a bullish rating. Zacks Research upgrades Six Flags to hold
- Neutral Sentiment: Heavy put-option activity: Traders purchased 3,322 put options, roughly 119% above typical volume. This indicates heightened hedging or bearish speculation but does not by itself confirm further declines.
- Negative Sentiment: Fatal coaster incident: A guest died and several people were injured in an incident involving the Goliath roller coaster at Six Flags Over Georgia. Police involvement and the seriousness of the event have created substantial reputational and regulatory risk. CNBC report on Six Flags incident
- Negative Sentiment: Ride closures across the system: Six Flags temporarily shut nine similar rides at six parks in the United States and Canada while inspections and reviews are conducted. The closures could reduce attendance, revenue and cash flow during the operating period. Wall Street Journal report on ride closures
- Negative Sentiment: Legal and financial pressure: Investor law firms have announced investigations into potential securities-law violations following the selloff, while reports also reference brain-injury lawsuits and approximately $5 billion of debt. Any settlements, penalties, legal costs or prolonged closures would be particularly challenging given Six Flags’ weak recent earnings and limited financial cushion. BFA Law investigation announcement
Wall Street Analysts Forecast Growth
FUN has been the subject of a number of research analyst reports. Zacks Research upgraded Six Flags Entertainment from a “strong sell” rating to a “hold” rating in a report on Monday. The Goldman Sachs Group set a $15.00 price target on shares of Six Flags Entertainment in a research report on Friday, August 7th. Guggenheim decreased their price target on shares of Six Flags Entertainment from $33.00 to $28.00 and set a “buy” rating for the company in a report on Friday, July 24th. Stifel Nicolaus set a $23.00 price objective on shares of Six Flags Entertainment in a research report on Friday, August 7th. Finally, Northcoast Research began coverage on shares of Six Flags Entertainment in a report on Wednesday, July 8th. They issued a “neutral” rating on the stock. Seven equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, Six Flags Entertainment currently has a consensus rating of “Hold” and a consensus target price of $20.54.
Six Flags Entertainment Trading Down 12.1%
The company has a current ratio of 0.42, a quick ratio of 0.36 and a debt-to-equity ratio of 43.34. The stock has a market capitalization of $917.30 million, a price-to-earnings ratio of -0.52 and a beta of 0.45. The firm has a 50-day moving average of $14.10 and a 200 day moving average of $17.81.
Six Flags Entertainment (NYSE:FUN – Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The company reported $0.14 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.29 by ($0.15). Six Flags Entertainment had a positive return on equity of 7.43% and a negative net margin of 57.25%. The business had revenue of $864.92 million for the quarter, compared to analyst estimates of $928.36 million. During the same quarter last year, the firm posted $0.26 EPS. The company’s revenue was down 7.0% compared to the same quarter last year. As a group, equities analysts predict that Six Flags Entertainment Corporation will post -0.91 EPS for the current fiscal year.
Insiders Place Their Bets
In related news, CEO John Reilly acquired 15,713 shares of Six Flags Entertainment stock in a transaction that occurred on Wednesday, August 12th. The stock was acquired at an average price of $15.80 per share, with a total value of $248,265.40. Following the completion of the acquisition, the chief executive officer directly owned 297,736 shares of the company’s stock, valued at $4,704,228.80. This trade represents a 5.57% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.10% of the stock is owned by insiders.
Institutional Trading of Six Flags Entertainment
Hedge funds and other institutional investors have recently made changes to their positions in the stock. Man Group plc bought a new stake in shares of Six Flags Entertainment in the 2nd quarter worth $7,134,000. Legal & General Group Plc bought a new position in Six Flags Entertainment during the second quarter valued at about $4,808,000. Lee Danner & Bass Inc. acquired a new position in Six Flags Entertainment during the first quarter worth about $2,089,000. Bank of America Corp DE bought a new stake in Six Flags Entertainment in the second quarter worth about $9,066,000. Finally, BlackRock Inc. acquired a new stake in Six Flags Entertainment in the 2nd quarter valued at about $339,057,000. 64.65% of the stock is currently owned by institutional investors.
Six Flags Entertainment Company Profile
Six Flags Entertainment Corporation operates amusement parks, water parks and resort properties across the United States, Canada and Mexico. Its portfolio offers roller coasters, family rides, water attractions, live entertainment, themed events, dining, retail and other guest experiences.
The company was formed through the 2024 merger of Six Flags Entertainment Corporation and Cedar Fair, L.P., combining the Six Flags and Cedar Fair park portfolios. Its properties include Six Flags-branded parks as well as parks operating under established regional brands such as Cedar Point, Kings Island, Knott’s Berry Farm and Canada’s Wonderland.
Six Flags serves vacationers, families and regional visitors through admission tickets, season passes, memberships, food and merchandise sales, and accommodations at select destinations.
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