Six Flags Entertainment (NYSE:FUN) Shares Gap Up – Here’s Why

Six Flags Entertainment Corporation (NYSE:FUN) gapped up prior to trading on Thursday. The stock had previously closed at $7.93, but opened at $9.30. Six Flags Entertainment shares last traded at $9.2650, with a volume of 2,197,646 shares changing hands.

More Six Flags Entertainment News

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

• Positive Sentiment: Longer-term indicators improved: the active pass base grew 7% year over year, and free cash flow for the first nine months improved by $300 million. Six Flags: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: Barclays lowered its price target from $22 to $13 but maintained an “overweight” rating; the new target implies 29.6% upside from the cited $10.03 price, though the sizable reduction reflects a more cautious valuation. Barclays stock recommendations
• Negative Sentiment: Third-quarter EPS was a loss of $3.59, far below analysts’ expected $1.93 profit. Revenue of $1.17 billion slightly topped estimates but fell 11% year over year. The company also cut its profit outlook after October setbacks, including attendance pressure following a fatal Georgia coaster incident, and announced a ride-safety review. Six Flags narrows losses, but October’s double blow forces profit outlook cut
• Negative Sentiment: Two law firms announced investigations into potential securities claims related to Six Flags, adding legal and reputational uncertainty for investors. Six Flags investors notified of securities fraud investigation

Analyst Upgrades and Downgrades

Several research firms have commented on FUN. Barclays cut their price objective on Six Flags Entertainment from $22.00 to $13.00 and set an “overweight” rating on the stock in a research report on Friday. Citizens Jmp decreased their price target on Six Flags Entertainment from $24.00 to $14.00 and set a “market outperform” rating for the company in a report on Thursday, October 22nd. Mizuho set a $5.00 price objective on shares of Six Flags Entertainment in a research report on Wednesday, October 21st. The Goldman Sachs Group restated a “neutral” rating and issued a $9.00 target price on shares of Six Flags Entertainment in a research note on Friday. Finally, Stifel Nicolaus set a $15.00 target price on shares of Six Flags Entertainment in a research note on Thursday. Seven research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $15.85.

Six Flags Entertainment Stock Performance

The firm has a market cap of $1.03 billion, a price-to-earnings ratio of -1.10 and a beta of 0.50. The company has a quick ratio of 0.36, a current ratio of 0.42 and a debt-to-equity ratio of 43.34. The company has a 50 day moving average of $11.05 and a 200 day moving average of $16.73.

Six Flags Entertainment (NYSE:FUN) last announced its earnings results on Thursday, November 5th. The company reported ($3.59) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.93 by ($5.52). Six Flags Entertainment had a negative net margin of 57.25% and a positive return on equity of 7.43%. The business had revenue of $1.17 billion during the quarter, compared to analyst estimates of $1.16 billion. During the same period in the previous year, the company earned ($2.20) earnings per share. The business’s revenue for the quarter was down 11.0% on a year-over-year basis. As a group, equities research analysts expect 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 bought 15,713 shares of the business’s stock in a transaction dated Wednesday, August 12th. The shares were acquired at an average price of $15.80 per share, for a total transaction of $248,265.40. Following the purchase, the chief executive officer owned 297,736 shares in the company, valued at $4,704,228.80. This trade represents a 5.57% increase in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.10% of the stock is currently owned by corporate insiders.

Institutional Trading of Six Flags Entertainment

Several hedge funds and other institutional investors have recently bought and sold shares of the company. BlackRock Inc. acquired a new position in shares of Six Flags Entertainment in the 2nd quarter worth approximately $339,057,000. Kanen Wealth Management LLC acquired a new stake in Six Flags Entertainment during the first quarter worth about $15,063,000. Bank of New York Mellon Corp acquired a new stake in Six Flags Entertainment during the second quarter worth about $11,975,000. Jupiter Topco LLC bought a new position in Six Flags Entertainment in the second quarter worth about $10,348,000. Finally, Jefferies Financial Group Inc. acquired a new position in Six Flags Entertainment in the third quarter valued at approximately $4,884,000. 64.65% of the stock is owned by institutional investors.

Six Flags Entertainment Company Profile

Six Flags Entertainment Corporation is a regional theme park operator headquartered in Charlotte, North Carolina. The company owns and operates amusement parks, water parks and resort properties, offering roller coasters, family rides, live entertainment, seasonal events, food and beverage, merchandise, and other guest experiences. Its portfolio includes parks operating under the Six Flags, Cedar Fair and affiliated brand names, including Six Flags Great Adventure, Cedar Point, Knott’s Berry Farm and Kings Island.

The company serves guests primarily in the United States, as well as in Canada and Mexico.