Six Flags Entertainment (NYSE:FUN) Shares Gap Up - Still a Buy?

Key Points

• Shares gapped up from a prior close of $7.93 to an opening price of $9.30, amid a positive reaction to quarterly revenue slightly beating estimates.
• Six Flags reported a third-quarter net loss of $366.1 million, narrower than a year earlier, but its $3.59-per-share loss missed analyst expectations; revenue fell 11% year over year to $1.17 billion.
• Risks remain: management cut its profit outlook following weaker October attendance and fallout from a fatal roller-coaster incident. Analysts’ consensus rating was Hold, with an average price target of $16.92.

Shares of Six Flags Entertainment Corporation (NYSE:FUN - Get Free Report) gapped up before the market opened 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.

More Six Flags Entertainment News

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

• Positive Sentiment: Six Flags reported a third-quarter net loss of $366.1 million, narrower than its $1.19 billion loss a year earlier. Revenue of $1.17 billion slightly topped estimates, helping support a positive market reaction. However, the company’s $3.59-per-share loss missed the cited analyst consensus of $1.93 per share. Six Flags third-quarter results Six Flags rallies after results
• Positive Sentiment: The company is promoting an expanded 2026 holiday-season lineup across 11 parks, including new events and free senior admission. These offers could support seasonal attendance, though their financial impact is uncertain. Six Flags holiday-season announcement
• Negative Sentiment: Management lowered its profit outlook after October brought weaker attendance and fallout from a deadly Georgia roller-coaster incident. Six Flags also launched a ride-safety review, raising concerns about the incident’s effects on guest demand and operating results. Outlook cut and October headwinds Third-quarter results and safety review
• Negative Sentiment: Revenue declined 11% from a year earlier, and the large quarterly loss underscores ongoing financial pressure. The outlook reduction and accident-related attendance concerns may weigh on investor sentiment despite the narrower year-over-year loss. Loss and attendance dip

Wall Street Analyst Weigh In

Several brokerages recently issued reports on FUN. Citizens Jmp reduced their price objective on Six Flags Entertainment from $24.00 to $14.00 and set a "market outperform" rating on the stock in a research note on Thursday, October 22nd. Stifel Nicolaus set a $23.00 price objective on Six Flags Entertainment in a research report on Friday, August 7th. The Goldman Sachs Group decreased their target price on shares of Six Flags Entertainment from $15.00 to $6.00 and set a "neutral" rating for the company in a research report on Monday, October 26th. Mizuho set a $5.00 target price on shares of Six Flags Entertainment in a research note on Wednesday, October 21st. Finally, Northcoast Research initiated coverage on shares of Six Flags Entertainment in a research report on Wednesday, July 8th. They set a "neutral" rating on the stock. Seven research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $16.92.

Six Flags Entertainment Price Performance

The firm has a market capitalization of $877.19 million, a P/E ratio of -0.50 and a beta of 0.50. The business's fifty day moving average is $11.30 and its 200 day moving average is $16.79. The company has a current ratio of 0.42, a quick ratio of 0.36 and a debt-to-equity ratio of 43.34.

Six Flags Entertainment (NYSE:FUN - Get Free Report) last announced its earnings results on Thursday, November 5th. The company reported ($3.59) EPS for the quarter, missing the consensus estimate of $1.93 by ($5.52). The firm had revenue of $1.17 billion during the quarter, compared to analyst estimates of $1.16 billion. Six Flags Entertainment had a positive return on equity of 7.43% and a negative net margin of 57.25%. The business's quarterly revenue was down 11.0% compared to the same quarter last year. During the same quarter in the previous year, the business earned ($2.20) earnings per share. As a group, analysts forecast that Six Flags Entertainment Corporation will post -0.91 EPS for the current year.

Insider Transactions at Six Flags Entertainment

In related news, CEO John Reilly purchased 15,713 shares of Six Flags Entertainment stock in a transaction on Wednesday, August 12th. The stock was bought at an average price of $15.80 per share, with a total value of $248,265.40. Following the completion of the transaction, the chief executive officer directly owned 297,736 shares of the company's stock, valued at approximately $4,704,228.80. This represents a 5.57% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, 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 owned by company insiders.

Institutional Investors Weigh In On Six Flags Entertainment

Several hedge funds have recently modified their holdings of the business. BlackRock Inc. acquired a new position in shares of Six Flags Entertainment during the 2nd quarter worth about $339,057,000. Kanen Wealth Management LLC bought a new position in shares of Six Flags Entertainment in the 1st quarter valued at about $15,063,000. Bank of New York Mellon Corp acquired a new stake in shares of Six Flags Entertainment in the second quarter valued at about $11,975,000. Jupiter Topco LLC acquired a new stake in shares of Six Flags Entertainment in the second quarter valued at about $10,348,000. Finally, Bank of America Corp DE bought a new stake in Six Flags Entertainment during the second quarter worth about $9,066,000. 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.

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