Six Flags Entertainment (NYSE:FUN) Hits New 12-Month Low After Earnings Miss

Key Points

• Shares of Six Flags Entertainment hit a new 52-week low at $21.44, closing last at $23.64, down from a previous close of $30.70.
• Multiple analysts have downgraded their price targets on Six Flags, with Jefferies Financial Group setting a new target of $42.00, while Citigroup cut theirs to $37.00.
• The company reported a negative earnings per share of ($2.20) for the last quarter, surpassing the consensus estimate but falling short of revenue expectations, with $202.06 million reported versus an expected $235.51 million.

Six Flags Entertainment Corporation (NYSE:FUN - Get Free Report) shares reached a new 52-week low during trading on Wednesday after the company announced weaker than expected quarterly earnings. The company traded as low as $21.44 and last traded at $23.64, with a volume of 3471167 shares trading hands. The stock had previously closed at $30.70.

The company reported $0.26 earnings per share for the quarter, missing analysts' consensus estimates of $0.79 by ($0.53). Six Flags Entertainment had a negative net margin of 14.92% and a negative return on equity of 1.00%. The business had revenue of $930.39 million for the quarter, compared to analyst estimates of $999.82 million. The firm's revenue for the quarter was up 62.8% compared to the same quarter last year.

Analyst Ratings Changes

Several analysts recently weighed in on the stock. Mizuho cut their price objective on shares of Six Flags Entertainment from $36.00 to $30.00 and set an "outperform" rating on the stock in a research report on Thursday. Barclays cut their target price on shares of Six Flags Entertainment from $40.00 to $27.00 and set an "overweight" rating for the company in a research report on Thursday. Wall Street Zen cut shares of Six Flags Entertainment from a "hold" rating to a "sell" rating in a report on Saturday, June 21st. Guggenheim dropped their target price on shares of Six Flags Entertainment from $48.00 to $43.00 and set a "buy" rating on the stock in a report on Thursday. Finally, The Goldman Sachs Group cut their target price on shares of Six Flags Entertainment from $30.00 to $23.00 and set a "neutral" rating for the company in a research report on Thursday. Two investment analysts have rated the stock with a sell rating, two have assigned a hold rating and eleven have assigned a buy rating to the company's stock. According to MarketBeat, Six Flags Entertainment presently has a consensus rating of "Moderate Buy" and a consensus price target of $39.79.

Insider Buying and Selling at Six Flags Entertainment

In other Six Flags Entertainment news, Director Michelle M. Frymire sold 5,929 shares of the stock in a transaction on Monday, May 12th. The stock was sold at an average price of $37.89, for a total transaction of $224,649.81. Following the completion of the transaction, the director directly owned 7,162 shares in the company, valued at $271,368.18. This represents a 45.29% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Company insiders own 1.80% of the company's stock.

Institutional Trading of Six Flags Entertainment

Several institutional investors and hedge funds have recently added to or reduced their stakes in FUN. Allworth Financial LP lifted its holdings in shares of Six Flags Entertainment by 1,179.0% during the 2nd quarter. Allworth Financial LP now owns 1,522 shares of the company's stock valued at $46,000 after purchasing an additional 1,403 shares in the last quarter. GAMMA Investing LLC lifted its stake in Six Flags Entertainment by 96.5% in the second quarter. GAMMA Investing LLC now owns 1,800 shares of the company's stock valued at $55,000 after acquiring an additional 884 shares during the last quarter. ORG Wealth Partners LLC grew its holdings in Six Flags Entertainment by 45.8% during the second quarter. ORG Wealth Partners LLC now owns 3,188 shares of the company's stock worth $102,000 after purchasing an additional 1,002 shares during the period. Contravisory Investment Management Inc. boosted its stake in shares of Six Flags Entertainment by 42.5% during the 2nd quarter. Contravisory Investment Management Inc. now owns 5,760 shares of the company's stock worth $175,000 after acquiring an additional 1,717 shares during the period. Finally, Trust Co. of Toledo NA OH increased its holdings in shares of Six Flags Entertainment by 9.2% in the second quarter. Trust Co. of Toledo NA OH now owns 7,144 shares of the company's stock valued at $217,000 after purchasing an additional 600 shares during the last quarter. 64.65% of the stock is owned by institutional investors.

Six Flags Entertainment Price Performance

The company has a debt-to-equity ratio of 2.97, a current ratio of 0.52 and a quick ratio of 0.42. The company's 50-day simple moving average is $30.60 and its 200-day simple moving average is $35.38. The stock has a market capitalization of $2.42 billion, a price-to-earnings ratio of -4.92 and a beta of 0.82.

About Six Flags Entertainment

Cedar Fair, L.P. owns and operates amusement and water parks, as well as complementary resort facilities. Its amusement parks include Cedar Point located on Lake Erie between Cleveland and Toledo in Sandusky, Ohio; Knott's Berry Farm near Los Angeles, California; Canada's Wonderland near Toronto, Ontario; Kings Island near Cincinnati, Ohio; Carowinds in Charlotte, North Carolina; Kings Dominion situated near Richmond, Virginia; California's Great America located in Santa Clara, California; Dorney Park in Pennsylvania; Worlds of Fun located in Kansas City, Missouri; Valleyfair situated near Minneapolis/St.