Six Flags Entertainment (NYSE:FUN) Shares Up 5.2% - Here's What Happened

Key Points

• Six Flags shares rose 5.2% to $12.00 in Monday trading, though volume was 76% below the stock’s average daily volume.
• Analysts have a consensus “Hold” rating and an average price target of $20.54, despite several firms maintaining Buy or Overweight ratings after lowering their targets.
• The company missed quarterly earnings and revenue expectations, reporting $0.14 per share versus $0.29 expected and revenue of $864.92 million versus $928.36 million; CEO John Reilly subsequently bought 15,713 shares.

Shares of Six Flags Entertainment Corporation (NYSE:FUN - Get Free Report) shot up 5.2% during trading on Monday. The stock traded as high as $11.95 and last traded at $12.00. 539,693 shares traded hands during mid-day trading, a decline of 76% from the average daily volume of 2,211,618 shares. The stock had previously closed at $11.41.

Wall Street Analyst Weigh In

Several research analysts have issued reports on FUN shares. Truist Financial lowered 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 research report on Thursday, September 10th. The Goldman Sachs Group set a $15.00 price objective on shares of Six Flags Entertainment in a research note on Friday, August 7th. Stifel Nicolaus set a $23.00 target price on shares of Six Flags Entertainment in a report on Friday, August 7th. Barclays decreased their target price on shares of Six Flags Entertainment from $26.00 to $22.00 and set an "overweight" rating for the company in a research note on Friday, August 7th. Finally, Wall Street Zen lowered Six Flags Entertainment from a "hold" rating to a "sell" rating in a report on Sunday, July 12th. Seven investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $20.54.

Six Flags Entertainment Stock Performance

The company has a quick ratio of 0.36, a current ratio of 0.42 and a debt-to-equity ratio of 43.34. The stock has a fifty day moving average price of $14.38 and a 200-day moving average price of $17.90. The firm has a market cap of $1.22 billion, a price-to-earnings ratio of -0.69 and a beta of 0.45.

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

Insider Activity at Six Flags Entertainment

In other news, CEO John Reilly bought 15,713 shares of the stock in a transaction dated Wednesday, August 12th. The shares were acquired at an average price of $15.80 per share, with a total value of $248,265.40. Following the completion of the acquisition, the chief executive officer directly owned 297,736 shares in the company, valued at approximately $4,704,228.80. The trade was a 5.57% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 2.10% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in FUN. WINTON GROUP Ltd boosted its position in shares of Six Flags Entertainment by 22.9% during the 2nd quarter. WINTON GROUP Ltd now owns 241,990 shares of the company's stock worth $5,154,000 after purchasing an additional 45,158 shares in the last quarter. Engineers Gate Manager LP acquired a new position in shares of Six Flags Entertainment during the 2nd quarter worth $898,000. Integrated Wealth Concepts LLC acquired a new position in shares of Six Flags Entertainment during the 2nd quarter worth $31,000. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in shares of Six Flags Entertainment in the 2nd quarter valued at about $432,000. Finally, Ameritas Advisory Services LLC purchased a new position in shares of Six Flags Entertainment in the 2nd quarter valued at about $54,000. 64.65% of the stock is currently owned by institutional investors and hedge funds.

Six Flags Entertainment Company Profile

Six Flags Entertainment Corporation operates amusement parks, water parks and resort properties across the United States, Canada and Mexico. Its portfolio offers roller coasters, family rides, water attractions, live entertainment, themed events, dining, retail and other guest experiences.

The company was formed through the 2024 merger of Six Flags Entertainment Corporation and Cedar Fair, L.P., combining the Six Flags and Cedar Fair park portfolios. Its properties include Six Flags-branded parks as well as parks operating under established regional brands such as Cedar Point, Kings Island, Knott's Berry Farm and Canada's Wonderland.

Six Flags serves vacationers, families and regional visitors through admission tickets, season passes, memberships, food and merchandise sales, and accommodations at select destinations.

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