Six Flags Entertainment Sees Unusually High Options Volume (NYSE:FUN)

Six Flags Entertainment Corporation (NYSE:FUN) was the recipient of some unusual options trading activity on Tuesday. Traders acquired 3,322 put options on the stock. This represents an increase of approximately 119% compared to the typical volume of 1,515 put options.

Insider Buying and Selling

In other news, CEO John Reilly purchased 15,713 shares of the firm’s stock in a transaction on Wednesday, August 12th. The shares were bought at an average cost of $15.80 per share, for a total transaction of $248,265.40. Following the completion of the purchase, the chief executive officer directly owned 297,736 shares of the company’s stock, valued at approximately $4,704,228.80. This trade represents a 5.57% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.10% of the stock is owned by company insiders.

Hedge Funds Weigh In On Six Flags Entertainment

Hedge funds and other institutional investors have recently made changes to their positions in the stock. BlackRock Inc. acquired a new stake in Six Flags Entertainment in the second quarter valued at approximately $339,057,000. Healthcare of Ontario Pension Plan Trust Fund acquired a new position in Six Flags Entertainment during the 4th quarter worth approximately $36,661,000. Invenomic Capital Management LP grew its holdings in Six Flags Entertainment by 38.9% during the 4th quarter. Invenomic Capital Management LP now owns 1,436,617 shares of the company’s stock worth $22,038,000 after acquiring an additional 402,329 shares in the last quarter. Kanen Wealth Management LLC purchased a new stake in shares of Six Flags Entertainment in the 1st quarter valued at approximately $15,063,000. Finally, Bank of New York Mellon Corp acquired a new stake in shares of Six Flags Entertainment in the 2nd quarter valued at $11,975,000. Hedge funds and other institutional investors own 64.65% of the company’s stock.

Key Stories Impacting Six Flags Entertainment

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

• Negative Sentiment: One guest died and several others were reportedly injured during an incident involving the Goliath roller coaster at Six Flags Over Georgia. The tragedy is likely to increase reputational, legal and regulatory risks for Six Flags. Guest dies amid incident on Six Flags Over Georgia roller coaster
• Negative Sentiment: Reports indicate that Six Flags has temporarily closed certain rides at parks in the United States and Canada. A broader shutdown could reduce attendance and revenue while increasing inspection, maintenance and compliance costs. Six Flags Stock Heads for Lowest Close Since 2009
• Negative Sentiment: The incident pushed the stock toward its lowest level in a year, with reports describing the decline as the sharpest reversal following the prior session’s regular-hours gain. Six Flags shares plunge after-hours following report of deadly roller coaster incident
• Neutral Sentiment: Options activity was unusually bearish: traders bought 3,322 put contracts, 119% above the average daily volume. This signals increased demand for downside protection or speculative bets, but does not by itself establish the company’s future performance.
• Negative Sentiment: The safety concerns arrive as Six Flags has limited financial flexibility. The company recently missed quarterly earnings and revenue expectations, reported year-over-year revenue declines and remains loss-making, leaving less cushion to absorb prolonged closures or incident-related expenses.

Analyst Ratings Changes

Several equities research analysts recently issued reports on FUN shares. Zacks Research downgraded Six Flags Entertainment from a “strong-buy” rating to a “strong sell” rating in a report on Tuesday, August 11th. Weiss Ratings reissued a “sell (e+)” rating on shares of Six Flags Entertainment in a research note on Wednesday, August 12th. Mizuho set a $10.00 target price on Six Flags Entertainment and gave the company an “underperform” rating in a report on Friday, August 7th. Guggenheim lowered their target price on Six Flags Entertainment from $33.00 to $28.00 and set a “buy” rating for the company in a report on Friday, July 24th. Finally, Oppenheimer dropped their target price on Six Flags Entertainment from $26.00 to $23.00 and set an “outperform” rating for the company in a research report on Friday, August 7th. Seven analysts have rated the stock with a Buy rating, six have issued a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $20.54.

Six Flags Entertainment Stock Down 16.6%

Shares of NYSE:FUN traded down $1.98 during trading on Tuesday, hitting $9.95. The company’s stock had a trading volume of 6,856,799 shares, compared to its average volume of 2,243,698. The business has a 50 day moving average price of $14.26 and a two-hundred day moving average price of $17.86. The company has a market capitalization of $1.02 billion, a PE ratio of -0.57 and a beta of 0.45. The company has a debt-to-equity ratio of 43.34, a quick ratio of 0.36 and a current ratio of 0.42. Six Flags Entertainment has a fifty-two week low of $9.86 and a fifty-two week high of $27.37.

Six Flags Entertainment (NYSE:FUN) last announced its quarterly earnings data on Thursday, August 6th. The company reported $0.14 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.29 by ($0.15). The company had revenue of $864.92 million during the quarter, compared to analyst estimates of $928.36 million. Six Flags Entertainment had a negative net margin of 57.25% and a positive return on equity of 7.43%. The firm’s revenue was down 7.0% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.26 earnings per share. As a group, research analysts expect that Six Flags Entertainment will post -0.91 EPS for the current fiscal year.

Six Flags Entertainment Company Profile

Six Flags Entertainment Corporation operates amusement parks, water parks and resort properties across the United States, Canada and Mexico. Its portfolio offers roller coasters, family rides, water attractions, live entertainment, themed events, dining, retail and other guest experiences.

The company was formed through the 2024 merger of Six Flags Entertainment Corporation and Cedar Fair, L.P., combining the Six Flags and Cedar Fair park portfolios. Its properties include Six Flags-branded parks as well as parks operating under established regional brands such as Cedar Point, Kings Island, Knott’s Berry Farm and Canada’s Wonderland.

Six Flags serves vacationers, families and regional visitors through admission tickets, season passes, memberships, food and merchandise sales, and accommodations at select destinations.