Six Flags Entertainment (NYSE:FUN) Trading Down 18.6% – Should You Sell?

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

Key Stories Impacting Six Flags Entertainment

Here are the key news stories impacting Six Flags Entertainment this week:

• Positive Sentiment: Analyst maintains bullish outlook: Citizens JMP lowered its price target from $29 to $24 but retained a “market outperform” rating, implying substantial upside from recent levels. Benzinga report
• Positive Sentiment: Management outlines margin and deleveraging goals: Six Flags is targeting adjusted EBITDA margins in the mid-30% range over time while reducing leverage toward approximately 4x. Progress on these objectives could improve cash flow and balance-sheet concerns. Seeking Alpha report
• Positive Sentiment: Season-pass sales launched: The company began selling 2027 passes at its lowest advertised price for this season and next, offering unlimited visits, parking and other benefits. The promotion could support advance bookings, attendance visibility and recurring revenue. Season-pass sales announcement
• Neutral Sentiment: New 2027 attraction announced: Six Flags Great America plans to open Camp Timber Trail, a family-focused area with nine attractions, including a new suspended family coaster. The project may strengthen the park’s long-term appeal, although financial benefits are not immediate. Camp Timber Trail announcement
• Negative Sentiment: Second-quarter results missed expectations: Six Flags reported adjusted EPS of $0.14 versus the $0.37 consensus estimate, while revenue of $864.9 million fell short of the $928.4 million forecast. The earnings miss and negative net margin remain the primary pressure points for FUN. Second-quarter results

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on the company. UBS Group upped their price target on Six Flags Entertainment from $27.00 to $30.00 and gave the company a “buy” rating in a report on Thursday, June 11th. Wall Street Zen cut Six Flags Entertainment from a “hold” rating to a “sell” rating in a report on Sunday, July 12th. Weiss Ratings downgraded Six Flags Entertainment from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Friday, May 15th. Citizens Jmp lowered their price objective on shares of Six Flags Entertainment from $29.00 to $24.00 and set a “market outperform” rating on the stock in a research note on Friday. Finally, Citigroup reissued a “neutral” rating on shares of Six Flags Entertainment in a report on Friday. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, six have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $22.21.

Six Flags Entertainment Price Performance

The firm has a market cap of $1.67 billion, a PE ratio of -0.95 and a beta of 0.40. The firm’s fifty day simple moving average is $20.23 and its two-hundred day simple moving average is $18.85. The company has a quick ratio of 0.62, a current ratio of 0.68 and a debt-to-equity ratio of 43.47.

Six Flags Entertainment (NYSE:FUN) last announced its quarterly earnings data on Thursday, May 7th. The company reported ($2.65) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($2.71) by $0.06. The firm had revenue of $225.63 million during the quarter, compared to analysts’ expectations of $207.49 million. Six Flags Entertainment had a negative net margin of 57.25% and a positive return on equity of 7.43%. As a group, research analysts expect that Six Flags Entertainment Corporation will post -0.11 EPS for the current year.

Insider Buying and Selling

In other Six Flags Entertainment news, Director Marilyn G. Spiegel purchased 2,500 shares of the firm’s stock in a transaction on Thursday, May 21st. The shares were acquired at an average cost of $19.10 per share, with a total value of $47,750.00. Following the completion of the acquisition, the director directly owned 15,161 shares in the company, valued at $289,575.10. The trade was a 19.75% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, insider Richard M. Haddrill acquired 10,000 shares of the stock in a transaction dated Tuesday, May 12th. The stock was acquired at an average price of $19.08 per share, for a total transaction of $190,800.00. Following the completion of the transaction, the insider directly owned 230,117 shares of the company’s stock, valued at approximately $4,390,632.36. This represents a 4.54% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last quarter, insiders bought 265,000 shares of company stock valued at $6,173,850. Company insiders own 2.10% 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 the business. Public Employees Retirement System of Ohio raised its holdings in shares of Six Flags Entertainment by 36.1% in the first quarter. Public Employees Retirement System of Ohio now owns 2,031 shares of the company’s stock worth $36,000 after buying an additional 539 shares during the period. Russell Investments Group Ltd. boosted its holdings in Six Flags Entertainment by 26.1% during the 2nd quarter. Russell Investments Group Ltd. now owns 2,830 shares of the company’s stock valued at $86,000 after acquiring an additional 586 shares during the period. Northwestern Mutual Wealth Management Co. grew its position in Six Flags Entertainment by 259.7% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 1,000 shares of the company’s stock valued at $30,000 after acquiring an additional 722 shares during the last quarter. CIBC Private Wealth Group LLC grew its position in Six Flags Entertainment by 26.3% in the 3rd quarter. CIBC Private Wealth Group LLC now owns 3,588 shares of the company’s stock valued at $82,000 after acquiring an additional 748 shares during the last quarter. Finally, Corient Private Wealth LLC grew its position in Six Flags Entertainment by 10.6% in the 2nd quarter. Corient Private Wealth LLC now owns 9,290 shares of the company’s stock valued at $283,000 after acquiring an additional 888 shares during the last quarter. 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.