Six Flags Entertainment (NYSE:FUN) Trading 19.5% Higher on Earnings Beat

Key Points

• Shares jumped 19.5% to about $23.53 after the quarterly report, with midday volume of 1.38M shares (down ~33% from the average session volume).
• Six Flags beat estimates, reporting EPS of ($2.64) vs. ($2.71) expected and revenue of $225.63M vs. $207.49M, but the company remains unprofitable with a net margin of -51.58%.
• Analyst sentiment is mixed — the consensus rating is Hold with an average price target of $23.38, amid several recent target and rating changes by firms like Citigroup and Mizuho.

Six Flags Entertainment Corporation (NYSE:FUN - Get Free Report) shares traded up 19.5% on Thursday following a better than expected earnings announcement. The stock traded as high as $23.25 and last traded at $23.5340. 1,383,612 shares were traded during mid-day trading, a decline of 33% from the average session volume of 2,050,911 shares. The stock had previously closed at $19.69.

The company reported ($2.64) earnings per share for the quarter, beating analysts' consensus estimates of ($2.71) by $0.07. Six Flags Entertainment had a negative net margin of 51.58% and a positive return on equity of 3.77%. The firm had revenue of $225.63 million during the quarter, compared to analyst estimates of $207.49 million.

Analyst Ratings Changes

A number of research analysts recently weighed in on the stock. Citigroup lowered shares of Six Flags Entertainment from a "buy" rating to a "neutral" rating and cut their target price for the company from $25.00 to $20.00 in a report on Thursday, February 5th. Barclays restated an "overweight" rating and issued a $22.00 price target on shares of Six Flags Entertainment in a research report on Monday, February 23rd. Morgan Stanley set a $18.00 price target on Six Flags Entertainment in a research report on Friday, February 20th. Jefferies Financial Group decreased their target price on Six Flags Entertainment from $20.00 to $17.00 and set a "hold" rating for the company in a research report on Tuesday, January 13th. Finally, Mizuho lifted their target price on Six Flags Entertainment from $24.00 to $25.00 and gave the stock an "outperform" rating in a research report on Friday, February 20th. Seven analysts have rated the stock with a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $23.38.

Hedge Funds Weigh In On Six Flags Entertainment

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. CoreCap Advisors LLC grew its stake in Six Flags Entertainment by 145.5% in the fourth quarter. CoreCap Advisors LLC now owns 1,645 shares of the company's stock valued at $25,000 after purchasing an additional 975 shares during the last quarter. Atlas Wealth LLC purchased a new position in Six Flags Entertainment in the first quarter valued at about $26,000. Danske Bank A S purchased a new position in Six Flags Entertainment in the third quarter valued at about $27,000. Kohmann Bosshard Financial Services LLC purchased a new position in Six Flags Entertainment in the fourth quarter valued at about $28,000. Finally, Ameritas Advisory Services LLC purchased a new position in Six Flags Entertainment in the third quarter valued at about $30,000. Hedge funds and other institutional investors own 64.65% of the company's stock.

Six Flags Entertainment Price Performance

The firm has a 50 day simple moving average of $17.72 and a 200-day simple moving average of $17.27. The company has a quick ratio of 0.59, a current ratio of 0.69 and a debt-to-equity ratio of 9.40. The company has a market cap of $2.35 billion, a PE ratio of -1.45 and a beta of 0.35.

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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