Six Flags Entertainment (NYSE:FUN) Trading Down 7% - Here's Why

Key Points

• Six Flags shares fell 7% to approximately $14.64 amid relatively light trading volume, while analysts’ consensus rating remained “Hold” with an average price target of $21.93.
• The company acquired the ArieForce One roller coaster and introduced installment payments for season passes, but the coaster will not open until 2028–2029, limiting near-term earnings benefits and potentially adding relocation and installation costs.
• Insiders have purchased 265,713 shares worth about $6.1 million over the past 90 days, while institutional investors and hedge funds own approximately 64.65% of the company.

Six Flags Entertainment Corporation (NYSE:FUN - Get Free Report) shares fell 7% on Wednesday . The stock traded as low as $14.60 and last traded at $14.6380. Approximately 403,381 shares changed hands during trading, a decline of 81% from the average session volume of 2,153,420 shares. The stock had previously closed at $15.74.

More Six Flags Entertainment News

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

• Positive Sentiment: Six Flags acquired ArieForce One, an acclaimed steel roller coaster previously operated at the closed Fun Spot America Atlanta. The company plans to relocate and reopen the ride at an as-yet-undisclosed Six Flags park during the 2028–2029 seasons. The attraction could strengthen the company’s lineup, generate publicity and support attendance over the long term. Six Flags Acquires Iconic ArieForce One, Bringing Fan-Favorite Roller Coaster Back to Life
• Positive Sentiment: The company also introduced an installment-payment option for season passes. Buy-now, pay-later flexibility may make memberships more affordable, potentially improving conversion and broadening the customer base, although the effect on revenue and cash flow remains unclear. Six Flags Lets Guests Use BNPL to Buy Season Passes
• Neutral Sentiment: ArieForce One’s new location has not been announced. While speculation includes parks such as Carowinds and properties near Orlando, the absence of a confirmed site means investors cannot yet assess the ride’s expected attendance contribution, development costs or opening timetable in detail. Six Flags Just Bought This World-Class Roller Coaster. Could It End Up at Carowinds?
• Negative Sentiment: The coaster is not expected to open until 2028–2029, so the acquisition is unlikely to provide meaningful near-term earnings support. Relocation, installation and maintenance spending could also weigh on returns before the attraction begins generating revenue. The installment program may additionally expose Six Flags to transaction costs or customer-credit risks.

Wall Street Analysts Forecast Growth

FUN has been the topic of a number of recent research reports. Citizens Jmp cut their price target on shares of Six Flags Entertainment from $29.00 to $24.00 and set a "market outperform" rating on the stock in a report on Friday, August 7th. Wall Street Zen lowered Six Flags Entertainment from a "hold" rating to a "sell" rating in a report on Sunday, July 12th. Zacks Research cut Six Flags Entertainment from a "strong-buy" rating to a "strong sell" rating in a research report on Tuesday, August 11th. Barclays lowered their price objective on Six Flags Entertainment from $26.00 to $22.00 and set an "overweight" rating on the stock in a report on Friday, August 7th. Finally, The Goldman Sachs Group set a $15.00 target price on Six Flags Entertainment in a report on Friday, August 7th. Seven investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and three have given a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $21.93.

Six Flags Entertainment Stock Performance

The stock has a market cap of $1.48 billion, a P/E ratio of -0.84 and a beta of 0.38. The firm has a 50 day moving average of $17.34 and a two-hundred day moving average of $18.64. The company has a debt-to-equity ratio of 43.34, a quick ratio of 0.36 and a current ratio of 0.42.

Insider Activity

In other news, CEO John T. Reilly bought 15,713 shares of Six Flags Entertainment stock in a transaction that occurred on Wednesday, August 12th. The stock was purchased at an average cost 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 in the company, valued at $4,704,228.80. This trade represents a 5.57% increase in their ownership of the stock. The purchase 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. Also, Director Rehan Jaffer purchased 125,000 shares of the stock in a transaction on Monday, June 15th. The stock was acquired at an average cost of $23.41 per share, for a total transaction of $2,926,250.00. Following the acquisition, the director directly owned 4,900,000 shares in the company, valued at approximately $114,709,000. This trade represents a 2.62% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last 90 days, insiders have bought 265,713 shares of company stock worth $6,135,765. Insiders own 2.10% of the company's stock.

Institutional Trading of Six Flags Entertainment

Several institutional investors have recently made changes to their positions in FUN. BlackRock Inc. acquired a new position in Six Flags Entertainment in the second quarter worth about $339,057,000. Rush Island Management LP bought a new position in shares of Six Flags Entertainment during the 2nd quarter worth approximately $115,454,000. Morgan Stanley boosted its stake in Six Flags Entertainment by 62.1% in the 4th quarter. Morgan Stanley now owns 9,473,532 shares of the company's stock valued at $145,324,000 after buying an additional 3,629,445 shares in the last quarter. Healthcare of Ontario Pension Plan Trust Fund acquired a new stake in Six Flags Entertainment in the 4th quarter valued at $36,661,000. Finally, California State Teachers Retirement System grew its position in Six Flags Entertainment by 1,976.0% in the second quarter. California State Teachers Retirement System now owns 2,465,858 shares of the company's stock valued at $52,523,000 after acquiring an additional 2,347,076 shares during the period. 64.65% of the stock is currently owned by institutional investors and hedge funds.

Six Flags Entertainment Company Profile

Six Flags Entertainment Corporation is a publicly traded regional theme park operator based in Arlington, Texas. The company develops, owns and operates amusement and water parks, offering a diverse portfolio of thrill rides, family attractions, live entertainment, food and beverage offerings, and retail merchandise. Its main revenue streams include single-day tickets, season passes, on-site accommodations, in-park retail sales, and food and beverage services.

Founded in 1961 by Angus G.

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