Six Flags Entertainment (NYSE:FUN) Sets New 52-Week Low - Time to Sell?

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 hit a new 52-week low during trading on Wednesday . The stock traded as low as $21.44 and last traded at $23.64, with a volume of 3471167 shares traded. The stock had previously closed at $30.70.

Analysts Set New Price Targets

A number of research firms have issued reports on FUN. JPMorgan Chase & Co. decreased their price target on shares of Six Flags Entertainment from $46.00 to $28.00 and set an "underweight" rating for the company in a report on Thursday, April 17th. Mizuho decreased their target price on Six Flags Entertainment from $36.00 to $30.00 and set an "outperform" rating for the company in a research note on Thursday. Truist Financial lowered their target price on Six Flags Entertainment from $52.00 to $45.00 and set a "buy" rating on the stock in a report on Monday, April 14th. Citigroup cut their price target on Six Flags Entertainment from $42.00 to $37.00 and set a "buy" rating for the company in a report on Thursday, July 10th. Finally, Jefferies Financial Group lowered shares of Six Flags Entertainment from a "buy" rating to a "hold" rating and dropped their target price for the stock from $41.00 to $25.00 in a research report on Thursday. Two investment analysts have rated the stock with a sell rating, two have assigned a hold rating and twelve have assigned a buy rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $41.47.

Six Flags Entertainment Stock Performance

The company has a current ratio of 0.37, a quick ratio of 0.28 and a debt-to-equity ratio of 2.98. The firm has a market capitalization of $2.42 billion, a price-to-earnings ratio of -4.98 and a beta of 0.82. The stock has a fifty day moving average price of $30.79 and a 200-day moving average price of $35.67.

Six Flags Entertainment (NYSE:FUN - Get Free Report) last posted its earnings results on Wednesday, August 6th. The company reported $0.26 earnings per share for the quarter, missing the consensus estimate of $0.79 by ($0.53). Six Flags Entertainment had a negative return on equity of 1.00% and a negative net margin of 14.92%. The firm had revenue of $930.39 million during the quarter, compared to the consensus estimate of $999.82 million. The firm's revenue for the quarter was up 62.8% on a year-over-year basis. As a group, analysts anticipate that Six Flags Entertainment Corporation will post 0.83 earnings per share for the current fiscal year.

Insider Activity

In related news, Director Michelle M. Frymire sold 5,929 shares of the stock in a transaction that occurred 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 sale, the director directly owned 7,162 shares in the company, valued at $271,368.18. This represents a 45.29% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 1.80% of the company's stock.

Hedge Funds Weigh In On Six Flags Entertainment

A number of institutional investors and hedge funds have recently bought and sold shares of FUN. Peregrine Capital Management LLC increased its stake in shares of Six Flags Entertainment by 7.5% in the first quarter. Peregrine Capital Management LLC now owns 131,499 shares of the company's stock valued at $4,691,000 after buying an additional 9,231 shares in the last quarter. Veracity Capital LLC grew its stake in shares of Six Flags Entertainment by 20.0% during the second quarter. Veracity Capital LLC now owns 25,282 shares of the company's stock valued at $769,000 after purchasing an additional 4,214 shares during the last quarter. Balefire LLC increased its holdings in shares of Six Flags Entertainment by 73.7% in the second quarter. Balefire LLC now owns 91,556 shares of the company's stock valued at $2,786,000 after purchasing an additional 38,832 shares in the last quarter. Wealth Enhancement Advisory Services LLC raised its position in Six Flags Entertainment by 5.7% in the 2nd quarter. Wealth Enhancement Advisory Services LLC now owns 8,923 shares of the company's stock worth $287,000 after purchasing an additional 484 shares during the last quarter. Finally, Contravisory Investment Management Inc. lifted its holdings in 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 buying an additional 1,717 shares in the last quarter. Institutional investors and hedge funds own 64.65% of the company's stock.

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.