Six Flags Entertainment (NYSE:FUN) Shares Down 18.6% - Should You Sell?

Key Points

• Six Flags Entertainment shares fell 18.6% to approximately $15.27, below both the 50-day moving average of $20.42 and the 200-day average of $18.87.
• Despite the selloff, analysts maintain a consensus “Moderate Buy” rating with a $25 average price target; individual targets range from neutral ratings to Guggenheim’s $28 “buy” target.
• The company reported quarterly revenue of $225.6 million and a loss of $2.65 per share, while insiders bought 265,000 shares worth about $6.2 million over the past three months.

Six Flags Entertainment Corporation (NYSE:FUN - Get Free Report)'s share price fell 18.6% on Thursday . The stock traded as low as $14.98 and last traded at $15.2680. 786,450 shares changed hands during mid-day trading, a decline of 63% from the average session volume of 2,127,178 shares. The stock had previously closed at $18.75.

Analysts Set New Price Targets

Several brokerages recently commented on FUN. Weiss Ratings downgraded shares of Six Flags Entertainment from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Friday, May 15th. Citizens Jmp started coverage on shares of Six Flags Entertainment in a research report on Monday, June 29th. They set a "market outperform" rating and a $29.00 price objective on the stock. Guggenheim cut their target price on shares of Six Flags Entertainment from $33.00 to $28.00 and set a "buy" rating on the stock in a research note on Friday, July 24th. Northcoast Research started coverage on Six Flags Entertainment in a report on Wednesday, July 8th. They issued a "neutral" rating for the company. Finally, Citigroup decreased their target price on Six Flags Entertainment from $24.00 to $19.00 and set a "neutral" rating for the company in a research report on Friday, July 10th. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Six Flags Entertainment currently has a consensus rating of "Moderate Buy" and a consensus price target of $25.00.

Six Flags Entertainment Price Performance

The stock's 50 day moving average price is $20.42 and its two-hundred day moving average price is $18.87. The company has a quick ratio of 0.62, a current ratio of 0.68 and a debt-to-equity ratio of 19.13. The firm has a market capitalization of $1.57 billion, a price-to-earnings ratio of -0.94 and a beta of 0.40.

Six Flags Entertainment (NYSE:FUN - Get Free Report) last posted its earnings results on Thursday, May 7th. The company reported ($2.65) EPS for the quarter, topping the consensus estimate of ($2.71) by $0.06. Six Flags Entertainment had a negative net margin of 52.76% and a positive return on equity of 5.17%. The firm had revenue of $225.63 million for the quarter, compared to the consensus estimate of $207.49 million. Analysts anticipate that Six Flags Entertainment Corporation will post -0.11 EPS for the current fiscal year.

Insider Buying and Selling

In other news, Director Marilyn G. Spiegel bought 2,500 shares of the stock in a transaction that occurred on Thursday, May 21st. The shares were acquired at an average cost of $19.10 per share, for a total transaction of $47,750.00. Following the purchase, the director owned 15,161 shares of the company's stock, valued at $289,575.10. This represents a 19.75% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Richard M. Haddrill bought 10,000 shares of the company's stock in a transaction that occurred on Tuesday, May 12th. The stock was purchased at an average price of $19.08 per share, for a total transaction of $190,800.00. Following the acquisition, the insider directly owned 230,117 shares in the company, valued at approximately $4,390,632.36. This trade represents a 4.54% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last three months, insiders bought 265,000 shares of company stock valued at $6,173,850. Company insiders own 2.10% of the company's stock.

Hedge Funds Weigh In On Six Flags Entertainment

Institutional investors and hedge funds have recently bought and sold shares of the stock. Atlas Wealth LLC bought a new stake in Six Flags Entertainment in the 1st quarter valued at $26,000. Danske Bank A S acquired a new position in Six Flags Entertainment in the 3rd quarter valued at approximately $27,000. Kohmann Bosshard Financial Services LLC bought a new stake in shares of Six Flags Entertainment in the 4th quarter worth approximately $28,000. Northwestern Mutual Wealth Management Co. grew its holdings in shares of Six Flags Entertainment by 259.7% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 1,000 shares of the company's stock worth $30,000 after purchasing an additional 722 shares in the last quarter. Finally, Public Employees Retirement System of Ohio increased its position in shares of Six Flags Entertainment by 36.1% during the first quarter. Public Employees Retirement System of Ohio now owns 2,031 shares of the company's stock valued at $36,000 after purchasing an additional 539 shares during the period. Institutional investors own 64.65% of the company's stock.

About Six Flags Entertainment

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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