Six Flags Entertainment (NYSE:FUN) Shares Down 12.1% – Here’s Why

Shares of Six Flags Entertainment Corporation (NYSE:FUN) dropped 12.1% during mid-day trading on Wednesday. The stock traded as low as $9.05 and last traded at $8.9650. 5,407,161 shares changed 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.

Analyst Ratings Changes

FUN has been the subject of a number of research reports. Truist Financial decreased their target price on shares of 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. Northcoast Research initiated coverage on Six Flags Entertainment in a report on Wednesday, July 8th. They issued a “neutral” rating for the company. Stifel Nicolaus set a $23.00 target price on Six Flags Entertainment in a report on Friday, August 7th. Citigroup lowered their target price on Six Flags Entertainment from $17.00 to $13.00 and set a “neutral” rating on the stock in a report on Thursday, October 8th. Finally, Guggenheim cut their price target on Six Flags Entertainment from $33.00 to $28.00 and set a “buy” rating for the company in a research note on Friday, July 24th. Seven investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $19.62.

Six Flags Entertainment Stock Performance

The firm has a market capitalization of $864.81 million, a PE ratio of -0.49 and a beta of 0.45. The company has a debt-to-equity ratio of 43.34, a quick ratio of 0.36 and a current ratio of 0.42. The business’s fifty day simple moving average is $13.76 and its 200-day simple moving average is $17.69.

Six Flags Entertainment (NYSE:FUN) last released its earnings results on Thursday, August 6th. The company reported $0.14 EPS for the quarter, missing the consensus estimate of $0.29 by ($0.15). The company had revenue of $864.92 million during the quarter, compared to analysts’ expectations of $928.36 million. Six Flags Entertainment had a positive return on equity of 7.43% and a negative net margin of 57.25%. Six Flags Entertainment’s quarterly revenue was down 7.0% compared to the same quarter last year. During the same period last year, the firm posted $0.26 EPS. As a group, equities research analysts expect that Six Flags Entertainment Corporation will post -0.91 EPS for the current year.

Insider Buying and Selling

In other Six Flags Entertainment news, CEO John Reilly acquired 15,713 shares of the company’s stock in a transaction on Wednesday, August 12th. The stock was acquired 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 of the company’s stock, valued at approximately $4,704,228.80. This represents a 5.57% increase in their position. The purchase was disclosed in a document filed with the SEC, 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 company insiders.

Institutional Investors Weigh In On Six Flags Entertainment

Institutional investors have recently modified their holdings of the stock. BlackRock Inc. purchased a new stake in Six Flags Entertainment during the 2nd quarter valued at $339,057,000. Invenomic Capital Management LP boosted its stake in Six Flags Entertainment by 38.9% during the fourth quarter. Invenomic Capital Management LP now owns 1,436,617 shares of the company’s stock worth $22,038,000 after buying an additional 402,329 shares during the period. Kanen Wealth Management LLC purchased a new position in Six Flags Entertainment during the first quarter worth $15,063,000. Clearline Capital LP boosted its stake in 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 buying an additional 544,087 shares during the period. Finally, Bank of New York Mellon Corp bought a new position in Six Flags Entertainment during the second quarter valued at $11,975,000. 64.65% of the stock is owned by institutional investors.

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.