Traders Purchase High Volume of Call Options on Six Flags Entertainment (NYSE:FUN)

Key Points

• Investors purchased a significant volume of 9,795 call options for Six Flags Entertainment, marking a 538% increase from the average daily volume.
• Six Flags' stock traded down $5.74 to $24.96, with a market capitalization of $2.52 billion and a negative P/E ratio of -8.99.
• Brokerages have revised their price targets for Six Flags, with Citigroup lowering it from $42.00 to $37.00, while other firms have set varied ratings, indicating differences in market sentiment.

Six Flags Entertainment Corporation (NYSE:FUN - Get Free Report) was the recipient of some unusual options trading activity on Wednesday. Stock investors purchased 9,795 call options on the company. Thisrepresentsanincreaseofapproximately538% compared to the average daily volume of 1,536 call options.

Six Flags Entertainment Price Performance

NYSE FUN traded down $1.28 during midday trading on Friday, hitting $23.88. The company had a trading volume of 5,591,407 shares, compared to its average volume of 4,377,197. The company has a market capitalization of $2.42 billion, a PE ratio of -4.92 and a beta of 0.82. The firm has a 50-day moving average price of $30.60 and a 200-day moving average price of $35.38. Six Flags Entertainment has a twelve month low of $21.44 and a twelve month high of $49.77. The company has a current ratio of 0.52, a quick ratio of 0.42 and a debt-to-equity ratio of 2.97.

Six Flags Entertainment (NYSE:FUN - Get Free Report) last posted its quarterly earnings results on Wednesday, August 6th. The company reported $0.26 EPS for the quarter, missing analysts' consensus estimates of $0.79 by ($0.53). The company had revenue of $930.39 million during the quarter, compared to analyst estimates of $999.82 million. Six Flags Entertainment had a negative net margin of 14.92% and a negative return on equity of 1.00%. The firm's revenue was up 62.8% compared to the same quarter last year. As a group, analysts anticipate that Six Flags Entertainment will post 0.83 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

A number of analysts have commented on FUN shares. Morgan Stanley cut their price target on shares of Six Flags Entertainment from $47.00 to $43.00 and set an "overweight" rating for the company in a research note on Monday, August 4th. Jefferies Financial Group cut Six Flags Entertainment from a "buy" rating to a "hold" rating and cut their price objective for the company from $41.00 to $25.00 in a research report on Thursday. Barclays cut their price objective on Six Flags Entertainment from $40.00 to $27.00 and set an "overweight" rating for the company in a research report on Thursday. Truist Financial cut their price target on Six Flags Entertainment from $52.00 to $45.00 and set a "buy" rating for the company in a report on Monday, April 14th. Finally, Guggenheim cut their price target on Six Flags Entertainment from $48.00 to $43.00 and set a "buy" rating for the company in a report on Thursday. Two investment analysts have rated the stock with a sell rating, two have given a hold rating and eleven have assigned a buy rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $39.79.

Insider Transactions at Six Flags Entertainment

In other news, Director Michelle M. Frymire sold 5,929 shares of the business's stock in a transaction on Monday, May 12th. The shares were sold at an average price of $37.89, for a total value of $224,649.81. Following the completion of the transaction, the director owned 7,162 shares of the company's stock, valued at $271,368.18. The trade was a 45.29% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Corporate insiders own 1.80% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in FUN. Alberta Investment Management Corp acquired a new position in Six Flags Entertainment in the 2nd quarter worth about $18,288,000. Quinn Opportunity Partners LLC grew its holdings in Six Flags Entertainment by 250.2% during the 2nd quarter. Quinn Opportunity Partners LLC now owns 159,328 shares of the company's stock worth $4,848,000 after acquiring an additional 113,828 shares during the period. DAVENPORT & Co LLC grew its position in shares of Six Flags Entertainment by 14.0% during the 2nd quarter. DAVENPORT & Co LLC now owns 664,853 shares of the company's stock worth $20,231,000 after buying an additional 81,418 shares during the period. Fox Run Management L.L.C. acquired a new stake in Six Flags Entertainment in the second quarter worth $1,780,000. Finally, Geode Capital Management LLC grew its stake in shares of Six Flags Entertainment by 2.4% in the 2nd quarter. Geode Capital Management LLC now owns 2,208,815 shares of the company's stock valued at $67,222,000 after buying an additional 52,337 shares during the period. 64.65% of the stock is currently owned by institutional investors and hedge funds.

About Six Flags Entertainment

Cedar Fair, L.P. owns and operates amusement and water parks, as well as complementary resort facilities. Its amusement parks include Cedar Point located on Lake Erie between Cleveland and Toledo in Sandusky, Ohio; Knott's Berry Farm near Los Angeles, California; Canada's Wonderland near Toronto, Ontario; Kings Island near Cincinnati, Ohio; Carowinds in Charlotte, North Carolina; Kings Dominion situated near Richmond, Virginia; California's Great America located in Santa Clara, California; Dorney Park in Pennsylvania; Worlds of Fun located in Kansas City, Missouri; Valleyfair situated near Minneapolis/St.