Six Flags Entertainment (NYSE:FUN) Stock Price Down 12.1% – Should You Sell?
by Danessa Lincoln · The Markets DailySix Flags Entertainment Corporation (NYSE:FUN – Get Free Report) traded down 12.1% during trading on Wednesday. The company traded as low as $9.05 and last traded at $8.9650. 5,407,161 shares traded hands during mid-day trading, an increase of 135% from the average daily volume of 2,298,849 shares. The stock had previously closed at $10.20.
Key Headlines Impacting Six Flags Entertainment
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 reports. Citigroup reduced their target price on shares of Six Flags Entertainment from $17.00 to $13.00 and set a “neutral” rating for the company in a report on Thursday, October 8th. Zacks Research upgraded Six Flags Entertainment from a “strong sell” rating to a “hold” rating in a research report on Monday. Stifel Nicolaus set a $23.00 price objective on Six Flags Entertainment in a research note on Friday, August 7th. Truist Financial reduced their price objective on Six Flags Entertainment from $28.00 to $22.00 and set a “buy” rating for the company in a research note on Thursday, September 10th. Finally, Citizens Jmp decreased their target price on Six Flags Entertainment from $29.00 to $24.00 and set a “market outperform” rating on the stock in a report on Friday, August 7th. Seven research analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, Six Flags Entertainment has an average rating of “Hold” and an average target price of $20.54.
Get Our Latest Research Report on FUN
Six Flags Entertainment Stock Performance
The firm’s fifty day simple moving average is $14.10 and its 200 day simple moving average is $17.81. The company has a market capitalization of $917.30 million, a price-to-earnings ratio of -0.52 and a beta of 0.45. The company has a debt-to-equity ratio of 43.34, a current ratio of 0.42 and a quick ratio of 0.36.
Six Flags Entertainment (NYSE:FUN – Get Free Report) last released its earnings results on Thursday, August 6th. The company reported $0.14 earnings per share for the quarter, missing the consensus estimate 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 firm had revenue of $864.92 million during the quarter, compared to analysts’ expectations of $928.36 million. During the same period last year, the business earned $0.26 earnings per share. The business’s revenue was down 7.0% on a year-over-year basis. On average, sell-side analysts forecast that Six Flags Entertainment Corporation will post -0.91 EPS for the current year.
Insiders Place Their Bets
In other news, CEO John Reilly bought 15,713 shares of the business’s stock in a transaction on Wednesday, August 12th. The shares were bought at an average cost of $15.80 per share, with a total value of $248,265.40. Following the purchase, the chief executive officer directly owned 297,736 shares in the company, valued at $4,704,228.80. This trade represents a 5.57% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 2.10% of the company’s stock.
Institutional Trading of Six Flags Entertainment
Several hedge funds and other institutional investors have recently modified their holdings of the business. BlackRock Inc. purchased a new position in Six Flags Entertainment during the 2nd quarter valued at about $339,057,000. Healthcare of Ontario Pension Plan Trust Fund acquired a new position in shares of Six Flags Entertainment in the 4th quarter valued at about $36,661,000. Invenomic Capital Management LP lifted its position in shares of Six Flags Entertainment by 38.9% in the fourth quarter. Invenomic Capital Management LP now owns 1,436,617 shares of the company’s stock worth $22,038,000 after purchasing an additional 402,329 shares in the last quarter. Kanen Wealth Management LLC purchased a new stake in shares of Six Flags Entertainment in the first quarter worth approximately $15,063,000. Finally, Clearline Capital LP boosted its holdings in shares of Six Flags Entertainment by 2,541.5% during the fourth quarter. Clearline Capital LP now owns 565,495 shares of the company’s stock worth $8,675,000 after purchasing an additional 544,087 shares during the period. Institutional investors and hedge funds own 64.65% of the company’s stock.
About Six Flags Entertainment
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.