Six Flags Entertainment Sees Unusually Large Options Volume (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) saw some unusual options trading on Wednesday. Stock investors purchased 9,795 call options on the stock. Thisisanincreaseofapproximately538% compared to the typical daily volume of 1,536 call options.

Six Flags Entertainment Stock Down 1.8%

NYSE:FUN traded down $0.45 during trading hours on Friday, reaching $24.71. The company's stock had a trading volume of 569,203 shares, compared to its average volume of 2,168,888. The company has a debt-to-equity ratio of 2.98, a quick ratio of 0.28 and a current ratio of 0.37. The company has a market capitalization of $2.50 billion, a P/E ratio of -5.10 and a beta of 0.82. The stock has a 50 day moving average price of $30.79 and a two-hundred day moving average price of $35.67. Six Flags Entertainment has a 12 month low of $21.44 and a 12 month high of $49.77.

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

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on FUN shares. Jefferies Financial Group lowered shares of Six Flags Entertainment from a "buy" rating to a "hold" rating and lowered their target price for the stock from $41.00 to $25.00 in a report on Thursday. UBS Group decreased their price objective on shares of Six Flags Entertainment from $49.00 to $40.00 and set a "buy" rating for the company in a research note on Tuesday, July 15th. Citigroup dropped their target price on Six Flags Entertainment from $42.00 to $37.00 and set a "buy" rating for the company in a research report on Thursday, July 10th. Mizuho reduced their price target on Six Flags Entertainment from $36.00 to $30.00 and set an "outperform" rating on the stock in a report on Thursday. Finally, JPMorgan Chase & Co. decreased their price target on Six Flags Entertainment from $46.00 to $28.00 and set an "underweight" rating for the company in a research note on Thursday, April 17th. Two research analysts have rated the stock with a sell rating, two have given a hold rating and twelve have issued a buy rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $41.47.

Insider Transactions at Six Flags Entertainment

In other news, Director Michelle M. Frymire sold 5,929 shares of Six Flags Entertainment stock in a transaction dated Monday, May 12th. The stock was sold at an average price of $37.89, for a total value of $224,649.81. Following the sale, the director directly owned 7,162 shares of the company's stock, valued at approximately $271,368.18. The trade was a 45.29% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Company insiders own 1.80% of the company's stock.

Institutional Investors Weigh In On Six Flags Entertainment

A number of large investors have recently made changes to their positions in the stock. Quinn Opportunity Partners LLC raised its stake in shares of Six Flags Entertainment by 250.2% during the 2nd quarter. Quinn Opportunity Partners LLC now owns 159,328 shares of the company's stock valued at $4,848,000 after buying an additional 113,828 shares during the last quarter. DAVENPORT & Co LLC grew its holdings in Six Flags Entertainment by 14.0% during the second quarter. DAVENPORT & Co LLC now owns 664,853 shares of the company's stock worth $20,231,000 after acquiring an additional 81,418 shares during the period. Fox Run Management L.L.C. purchased a new position in Six Flags Entertainment during the second quarter valued at approximately $1,780,000. Geode Capital Management LLC raised its position in Six Flags Entertainment by 2.4% during the second quarter. Geode Capital Management LLC now owns 2,208,815 shares of the company's stock valued at $67,222,000 after acquiring an additional 52,337 shares in the last quarter. Finally, Y Intercept Hong Kong Ltd lifted its holdings in Six Flags Entertainment by 127.3% in the second quarter. Y Intercept Hong Kong Ltd now owns 92,328 shares of the company's stock valued at $2,810,000 after acquiring an additional 51,713 shares during the period. 64.65% of the stock is owned by hedge funds and other institutional investors.

Six Flags Entertainment Company Profile

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.