Six Flags Entertainment (NYSE:FUN) Shares Gap Up - Still a Buy?

Key Points

• Six Flags Entertainment's share price gapped up from $21.76 to $22.58 at market open, with the stock currently trading at $23.14 and a trading volume of 319,747 shares.
• Analysts have downgraded price targets for Six Flags, with Stifel Nicolaus lowering its price objective from $50.00 to $43.00 and Barclays from $40.00 to $27.00, while the company's current consensus rating is "Moderate Buy" with an average price target of $36.36.
• In its latest earnings report, Six Flags reported $0.26 earnings per share, missing estimates by $0.53, and reported revenue of $930.39 million, which is 62.8% higher year-over-year but below analysts' expectations.

Six Flags Entertainment Corporation (NYSE:FUN - Get Free Report)'s stock price gapped up prior to trading on Friday . The stock had previously closed at $21.76, but opened at $22.58. Six Flags Entertainment shares last traded at $23.14, with a volume of 319,747 shares traded.

Wall Street Analyst Weigh In

FUN has been the subject of a number of research reports. JPMorgan Chase & Co. decreased their price target on Six Flags Entertainment from $33.00 to $24.00 and set an "underweight" rating for the company in a research note on Thursday, August 14th. Mizuho lowered their price objective on shares of Six Flags Entertainment from $36.00 to $30.00 and set an "outperform" rating for the company in a research report on Thursday, August 7th. Wall Street Zen downgraded shares of Six Flags Entertainment from a "hold" rating to a "sell" rating in a research report on Saturday, June 21st. Citigroup lowered their price objective on shares of Six Flags Entertainment from $42.00 to $37.00 and set a "buy" rating for the company in a research report on Thursday, July 10th. Finally, Truist Financial downgraded shares of Six Flags Entertainment from a "buy" rating to a "hold" rating and set a $27.00 price objective for the company. in a research report on Wednesday, September 3rd. Ten research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $36.36.

Six Flags Entertainment Trading Down 0.1%

The company has a current ratio of 0.52, a quick ratio of 0.42 and a debt-to-equity ratio of 2.97. The stock has a market cap of $2.43 billion, a P/E ratio of -4.90 and a beta of 0.72. The firm's 50-day simple moving average is $26.84 and its 200 day simple moving average is $31.66.

Six Flags Entertainment (NYSE:FUN - Get Free Report) last posted its earnings results on Wednesday, August 6th. The company reported $0.26 EPS 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 business's revenue for the quarter was up 62.8% on a year-over-year basis. As a group, equities research analysts anticipate that Six Flags Entertainment Corporation will post 0.83 earnings per share for the current year.

Institutional Trading of Six Flags Entertainment

A number of institutional investors have recently made changes to their positions in FUN. Peregrine Capital Management LLC lifted its stake in shares of Six Flags Entertainment by 7.5% in the 1st quarter. Peregrine Capital Management LLC now owns 131,499 shares of the company's stock worth $4,691,000 after acquiring an additional 9,231 shares during the period. Veracity Capital LLC lifted its stake in 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 lifted its stake in Six Flags Entertainment by 73.7% during 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 during the last quarter. Wealth Enhancement Advisory Services LLC lifted its stake in Six Flags Entertainment by 5.7% during the second quarter. Wealth Enhancement Advisory Services LLC now owns 8,923 shares of the company's stock valued at $287,000 after purchasing an additional 484 shares during the last quarter. Finally, Contravisory Investment Management Inc. lifted its stake in Six Flags Entertainment by 42.5% during the second quarter. Contravisory Investment Management Inc. now owns 5,760 shares of the company's stock valued at $175,000 after purchasing an additional 1,717 shares during the last quarter. 64.65% of the stock is owned by institutional investors and hedge funds.

Six Flags Entertainment Company Profile

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.