Six Flags Entertainment (NYSE:FUN) Reaches New 12-Month Low - Time to Sell?

Key Points

• Six Flags Entertainment shares fell to a new 52-week low of $11.91, well below their 50-day and 200-day moving averages of $15.62 and $18.25.
• Analyst sentiment is mixed but leans cautious: the consensus rating is “Hold” with a $21.50 price target, while recent firms issued “strong sell,” “underperform,” and “sell” opinions.
• The company missed quarterly expectations, reporting EPS of $0.14 versus $0.29 expected and revenue of $864.92 million versus $928.36 million estimated; revenue declined 7% year over year and analysts expect a full-year loss.

Six Flags Entertainment Corporation (NYSE:FUN - Get Free Report) reached a new 52-week low during trading on Monday. The company traded as low as $11.91 and last traded at $11.9630, with a volume of 243754 shares. The stock had previously closed at $12.32.

Wall Street Analyst Weigh In

A number of research firms recently commented on FUN. Zacks Research cut Six Flags Entertainment from a "strong-buy" rating to a "strong sell" rating in a research report on Tuesday, August 11th. Mizuho set a $10.00 target price on shares of Six Flags Entertainment and gave the stock an "underperform" rating in a research note on Friday, August 7th. Citizens Jmp dropped their price target on Six Flags Entertainment from $29.00 to $24.00 and set a "market outperform" rating for the company in a research note on Friday, August 7th. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Six Flags Entertainment in a research note on Wednesday, August 12th. Finally, Northcoast Research assumed coverage on shares of Six Flags Entertainment in a research report on Wednesday, July 8th. They set a "neutral" rating on the stock. Seven analysts have rated the stock with a Buy rating, six have given a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $21.50.

Six Flags Entertainment Stock Performance

The company has a market cap of $1.19 billion, a price-to-earnings ratio of -0.67 and a beta of 0.38. The company has a debt-to-equity ratio of 43.34, a current ratio of 0.42 and a quick ratio of 0.36. The firm has a 50 day simple moving average of $15.62 and a 200-day simple moving average of $18.25.

Six Flags Entertainment (NYSE:FUN - Get Free Report) last issued its earnings results on Thursday, August 6th. The company reported $0.14 EPS for the quarter, missing analysts' consensus estimates of $0.29 by ($0.15). Six Flags Entertainment had a positive return on equity of 7.43% and a negative net margin of 57.25%.The firm had revenue of $864.92 million for the quarter, compared to analyst estimates of $928.36 million. During the same quarter in the previous year, the firm posted $0.26 EPS. The business's revenue for the quarter was down 7.0% on a year-over-year basis. As a group, analysts predict that Six Flags Entertainment Corporation will post -0.91 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CEO John Reilly bought 15,713 shares of the business's stock in a transaction on Wednesday, August 12th. The shares were bought 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 in the company, valued at $4,704,228.80. This trade represents a 5.57% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 2.10% of the company's stock.

Institutional Investors Weigh In On Six Flags Entertainment

Several large investors have recently bought and sold shares of FUN. BlackRock Inc. bought a new position in Six Flags Entertainment during the second quarter worth $339,057,000. Healthcare of Ontario Pension Plan Trust Fund purchased a new position in Six Flags Entertainment in the fourth quarter worth $36,661,000. Kanen Wealth Management LLC purchased a new stake in shares of Six Flags Entertainment during the first quarter worth $15,063,000. Bank of New York Mellon Corp purchased a new position in Six Flags Entertainment during the second quarter worth about $11,975,000. Finally, Clearline Capital LP grew its stake in shares of Six Flags Entertainment by 2,541.5% during the fourth quarter. Clearline Capital LP now owns 565,495 shares of the company's stock valued at $8,675,000 after buying an additional 544,087 shares during the last quarter. Institutional investors own 64.65% of the company's stock.

About Six Flags Entertainment

Six Flags Entertainment Corporation operates amusement and water parks across the United States, Canada and Mexico. The company's portfolio includes parks operating under the Six Flags and Cedar Fair brands, as well as well-known destinations such as Cedar Point, Kings Island, Knott's Berry Farm and Canada's Wonderland.

Its parks provide roller coasters, family rides, water attractions, seasonal events, live entertainment, dining and retail experiences. The company generates revenue primarily through admission tickets, season passes, memberships, food and beverage sales, merchandise, sponsorships and related hospitality offerings.

Six Flags Entertainment was formed through the merger of Six Flags Entertainment Corporation and Cedar Fair, L.P., which was completed in July 2024.

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