Six Flags Entertainment (NYSE:FUN) Shares Gap Up After Insider Buying Activity

Key Points

• Six Flags shares opened sharply higher, rising from a prior close of $10.16 to an opening price of $11.08 after director Rehan Jaffer bought 1.45 million shares across three transactions for about $14.9 million.
• Analysts’ consensus rating was Hold, with an average price target of $14.85; opinions varied, including price targets ranging from $5 to $22.
• The company reported quarterly adjusted results below expectations, with a loss of $3.59 per share versus consensus estimates of $1.93 in earnings, while revenue fell 11% year over year to $1.17 billion.

Six Flags Entertainment Corporation (NYSE:FUN - Get Free Report) gapped up prior to trading on Wednesday after an insider bought additional shares in the company. The stock had previously closed at $10.16, but opened at $11.08. Six Flags Entertainment shares last traded at $10.9950, with a volume of 395,920 shares trading hands.

Specifically, Director Rehan Jaffer acquired 400,000 shares of the firm's stock in a transaction that occurred on Tuesday, November 10th. The shares were purchased at an average cost of $10.32 per share, for a total transaction of $4,128,000.00. Following the completion of the acquisition, the director owned 6,350,000 shares of the company's stock, valued at approximately $65,532,000. The trade was a 6.72% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Rehan Jaffer acquired 350,000 shares of the stock in a transaction that occurred on Monday, November 9th. The stock was acquired at an average price of $10.86 per share, with a total value of $3,801,000.00. Following the completion of the transaction, the director directly owned 5,950,000 shares of the company's stock, valued at $64,617,000. This trade represents a 6.25% increase in their position. The SEC filing for this purchase provides additional information. In other Six Flags Entertainment news, Director Rehan Jaffer bought 700,000 shares of the business's stock in a transaction on Friday, November 6th. The stock was bought at an average price of $10.00 per share, with a total value of $7,000,000.00. Following the completion of the purchase, the director directly owned 5,600,000 shares in the company, valued at $56,000,000. The trade was a 14.29% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link.

Analysts Set New Price Targets

Several brokerages have recently commented on FUN. Weiss Ratings raised Six Flags Entertainment from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Monday. The Goldman Sachs Group reiterated a "neutral" rating and set a $9.00 price target on shares of Six Flags Entertainment in a report on Friday, November 6th. Stifel Nicolaus set a $15.00 price objective on Six Flags Entertainment in a research report on Thursday, November 5th. Truist Financial reduced their price objective on shares of Six Flags Entertainment from $28.00 to $22.00 and set a "buy" rating on the stock in a report on Thursday, September 10th. Finally, Mizuho set a $5.00 price objective on shares of Six Flags Entertainment in a report on Wednesday, October 21st. Six research analysts have rated the stock with a Buy rating, six have given a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Six Flags Entertainment has a consensus rating of "Hold" and a consensus target price of $14.85.

Six Flags Entertainment News Summary

These are some of the FUN news items that stood out recently:

• Positive Sentiment: Directors and insiders have recently bought shares. Director Rehan Jaffer purchased 1.45 million shares across three transactions for about $14.9 million, while Richard Haddrill and Christopher Lawrence Bennett also reported purchases. The buying may signal confidence, though it does not resolve the company’s challenges. SEC filing
• Negative Sentiment: Two law firms announced investigations into potential securities-law violations related to company statements about safety, maintenance and ride reliability. The announcements follow reports of a 14% stock drop after safety issues were disclosed. These are investigations, not findings of wrongdoing, but add legal and reputational uncertainty. BFA Law investigation announcement Pomerantz investigation announcement
• Negative Sentiment: Commentary has also highlighted the company’s substantial debt burden and the challenge of improving its financial position, adding to concerns about its solvency and outlook. Seeking Alpha analysis

Six Flags Entertainment Stock Performance

The firm has a market capitalization of $1.14 billion, a PE ratio of -1.22 and a beta of 0.50. The company has a quick ratio of 0.46, a current ratio of 0.52 and a debt-to-equity ratio of 43.34. The firm has a 50-day moving average price of $10.84 and a 200 day moving average price of $16.65.

Six Flags Entertainment (NYSE:FUN - Get Free Report) last announced its quarterly earnings data on Thursday, November 5th. The company reported ($3.59) EPS for the quarter, missing analysts' consensus estimates of $1.93 by ($5.52). Six Flags Entertainment had a negative return on equity of 15.95% and a negative net margin of 31.91%. The company had revenue of $1.17 billion for the quarter, compared to analyst estimates of $1.16 billion. During the same period in the prior year, the firm posted ($2.20) earnings per share. The business's quarterly revenue was down 11.0% compared to the same quarter last year. Research analysts expect that Six Flags Entertainment Corporation will post -2.79 earnings per share for the current year.

Institutional Investors Weigh In On Six Flags Entertainment

Institutional investors have recently added to or reduced their stakes in the business. Atlas Wealth LLC acquired a new stake in shares of Six Flags Entertainment during the 1st quarter valued at approximately $26,000. Integrated Wealth Concepts LLC acquired a new stake in shares of Six Flags Entertainment in the 2nd quarter worth approximately $31,000. Allworth Financial LP acquired a new stake in shares of Six Flags Entertainment in the 2nd quarter worth approximately $35,000. Sterling Capital Management LLC increased its stake in Six Flags Entertainment by 846.3% in the 3rd quarter. Sterling Capital Management LLC now owns 3,227 shares of the company's stock valued at $35,000 after purchasing an additional 2,886 shares in the last quarter. Finally, Public Employees Retirement System of Ohio increased its stake in Six Flags Entertainment by 36.1% in the 1st quarter. Public Employees Retirement System of Ohio now owns 2,031 shares of the company's stock valued at $36,000 after purchasing an additional 539 shares in the last quarter. Hedge funds and other institutional investors own 64.65% of the company's stock.

Six Flags Entertainment Company Profile

Six Flags Entertainment Corporation operates amusement parks, water parks and related resort properties. Its attractions include rides, live entertainment, family activities, dining and seasonal events, with access offered through single-day tickets, season passes and other guest programs. The company serves visitors across the United States, Canada and Mexico through parks that include properties formerly operated by both the Six Flags and Cedar Fair organizations. Six Flags Entertainment was formed when Cedar Fair and Six Flags combined in a merger completed in 2024.

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