Mizuho Downgrades Six Flags Entertainment (NYSE:FUN) to Strong Sell

Six Flags Entertainment (NYSE:FUN) was downgraded by analysts at Mizuho from a “strong-buy” rating to a “strong sell” rating in a research note issued to investors on Thursday,Zacks.com reports.

Several other analysts have also recently weighed in on FUN. Guggenheim dropped their price target on Six Flags Entertainment from $33.00 to $28.00 and set a “buy” rating for the company in a report on Friday, July 24th. UBS Group increased their price objective on Six Flags Entertainment from $27.00 to $30.00 and gave the stock a “buy” rating in a research report on Thursday, June 11th. Barclays dropped their target price on Six Flags Entertainment from $26.00 to $22.00 and set an “overweight” rating for the company in a report on Friday. Zacks Research upgraded shares of Six Flags Entertainment from a “hold” rating to a “strong-buy” rating in a research note on Monday, August 3rd. Finally, Weiss Ratings cut shares of Six Flags Entertainment from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Friday, May 15th. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, six have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, Six Flags Entertainment has a consensus rating of “Hold” and a consensus target price of $22.21.

Six Flags Entertainment Stock Up 4.0%

Six Flags Entertainment stock opened at $16.39 on Thursday. The stock has a market cap of $1.67 billion, a P/E ratio of -0.95 and a beta of 0.40. The company has a quick ratio of 0.62, a current ratio of 0.68 and a debt-to-equity ratio of 43.47. Six Flags Entertainment has a twelve month low of $12.51 and a twelve month high of $27.37. The company’s 50-day moving average price is $20.23 and its two-hundred day moving average price is $18.85.

Six Flags Entertainment (NYSE:FUN) last issued its quarterly earnings data on Thursday, May 7th. The company reported ($2.65) earnings per share (EPS) for the quarter, topping the consensus estimate of ($2.71) by $0.06. Six Flags Entertainment had a negative net margin of 57.25% and a positive return on equity of 7.43%. The firm had revenue of $225.63 million during the quarter, compared to the consensus estimate of $207.49 million. As a group, analysts expect that Six Flags Entertainment will post -0.11 EPS for the current year.

Insider Buying and Selling at Six Flags Entertainment

In related news, Director Marilyn G. Spiegel bought 2,500 shares of Six Flags Entertainment stock in a transaction dated Thursday, May 21st. The shares were bought at an average cost of $19.10 per share, with a total value of $47,750.00. Following the acquisition, the director owned 15,161 shares in the company, valued at $289,575.10. This trade represents a 19.75% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, insider Richard M. Haddrill purchased 10,000 shares of the firm’s stock in a transaction that occurred on Tuesday, May 12th. The stock was bought at an average price of $19.08 per share, for a total transaction of $190,800.00. Following the transaction, the insider directly owned 230,117 shares of the company’s stock, valued at $4,390,632.36. This trade represents a 4.54% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders purchased 265,000 shares of company stock valued at $6,173,850 in the last three months. Corporate insiders own 2.10% of the company’s stock.

Institutional Investors Weigh In On Six Flags Entertainment

A number of large investors have recently bought and sold shares of FUN. BlackRock Inc. acquired a new stake in shares of Six Flags Entertainment during the 2nd quarter worth approximately $339,057,000. UBS Group AG increased its stake in Six Flags Entertainment by 533.4% in the fourth quarter. UBS Group AG now owns 5,279,720 shares of the company’s stock valued at $80,991,000 after acquiring an additional 4,446,104 shares during the last quarter. Rush Island Management LP bought a new position in Six Flags Entertainment in the second quarter valued at approximately $115,454,000. Morgan Stanley raised its position in Six Flags Entertainment by 62.1% during the fourth quarter. Morgan Stanley now owns 9,473,532 shares of the company’s stock valued at $145,324,000 after purchasing an additional 3,629,445 shares in the last quarter. Finally, Healthcare of Ontario Pension Plan Trust Fund acquired a new position in Six Flags Entertainment during the fourth quarter valued at approximately $36,661,000. 64.65% of the stock is currently owned by institutional investors and hedge funds.

Key Six Flags Entertainment News

Here are the key news stories impacting Six Flags Entertainment this week:

• Positive Sentiment: Analyst maintains bullish outlook: Citizens JMP lowered its price target from $29 to $24 but retained a “market outperform” rating, implying substantial upside from recent levels. Benzinga report
• Positive Sentiment: Management outlines margin and deleveraging goals: Six Flags is targeting adjusted EBITDA margins in the mid-30% range over time while reducing leverage toward approximately 4x. Progress on these objectives could improve cash flow and balance-sheet concerns. Seeking Alpha report
• Positive Sentiment: Season-pass sales launched: The company began selling 2027 passes at its lowest advertised price for this season and next, offering unlimited visits, parking and other benefits. The promotion could support advance bookings, attendance visibility and recurring revenue. Season-pass sales announcement
• Neutral Sentiment: New 2027 attraction announced: Six Flags Great America plans to open Camp Timber Trail, a family-focused area with nine attractions, including a new suspended family coaster. The project may strengthen the park’s long-term appeal, although financial benefits are not immediate. Camp Timber Trail announcement
• Negative Sentiment: Second-quarter results missed expectations: Six Flags reported adjusted EPS of $0.14 versus the $0.37 consensus estimate, while revenue of $864.9 million fell short of the $928.4 million forecast. The earnings miss and negative net margin remain the primary pressure points for FUN. Second-quarter results

About Six Flags Entertainment

Six Flags Entertainment Corporation is a publicly traded regional theme park operator based in Arlington, Texas. The company develops, owns and operates amusement and water parks, offering a diverse portfolio of thrill rides, family attractions, live entertainment, food and beverage offerings, and retail merchandise. Its main revenue streams include single-day tickets, season passes, on-site accommodations, in-park retail sales, and food and beverage services.

Founded in 1961 by Angus G.