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

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

Key Six Flags Entertainment News

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

• Positive Sentiment: Zacks Research upgraded Six Flags from “strong sell” to “hold,” suggesting the recent selloff may have brought the stock closer to a neutral valuation, although the firm did not issue a bullish recommendation. Zacks Research upgrade report
• Neutral Sentiment: Options activity was unusually bearish, with traders purchasing 3,322 put contracts—about 119% above typical volume. This signals heightened downside hedging or speculation but does not by itself establish a change in fundamentals.
• Negative Sentiment: A guest died and several people were injured in an incident involving the Goliath roller coaster at Six Flags Over Georgia. Six Flags temporarily closed nine similar rides across six parks in the U.S. and Canada while inspections and investigations proceed. The closures could reduce attendance, operating revenue, and near-term cash flow, while increasing safety, maintenance, and reputational costs. CNBC report on the fatal incident
• Negative Sentiment: The accident has intensified scrutiny of Six Flags’ operating practices and threatens its post-merger turnaround plans. The company is already carrying substantial debt, and investors are concerned that weaker attendance, ride shutdowns, potential lawsuits, and regulatory action could further pressure liquidity. Separate law firms, including BFA Law and SueWallSt, announced securities-fraud investigations on behalf of shareholders following the sharp decline. These announcements are not findings of wrongdoing but add legal uncertainty and potential costs. Wall Street Journal report on Six Flags’ turnaround BFA Law investigation announcement

Six Flags Entertainment Stock Performance

Shares of NYSE FUN opened at $8.92 on Thursday. The stock’s fifty day simple moving average is $13.91 and its 200 day simple moving average is $17.75. The stock has a market capitalization of $912.80 million, a price-to-earnings ratio of -0.52 and a beta of 0.45. The company has a quick ratio of 0.36, a current ratio of 0.42 and a debt-to-equity ratio of 43.34. Six Flags Entertainment has a 52-week low of $8.87 and a 52-week high of $27.37.

Six Flags Entertainment (NYSE:FUN) last announced its earnings results on Thursday, August 6th. The company reported $0.14 EPS for the quarter, missing the consensus estimate of $0.29 by ($0.15). The company had revenue of $864.92 million for the quarter, compared to analysts’ expectations 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 company’s revenue for the quarter was down 7.0% on a year-over-year basis. During the same period in the prior year, the company earned $0.26 earnings per share. As a group, sell-side analysts forecast that Six Flags Entertainment will post -0.91 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

FUN has been the subject of a number of research analyst reports. Citizens Jmp cut their price target on shares of Six Flags Entertainment from $29.00 to $24.00 and set a “market outperform” rating for the company in a report on Friday, August 7th. Stifel Nicolaus set a $23.00 price objective on shares of Six Flags Entertainment in a research report on Friday, August 7th. Northcoast Research began coverage on shares of Six Flags Entertainment in a research note on Wednesday, July 8th. They issued a “neutral” rating on the stock. Barclays lowered their price objective on shares of Six Flags Entertainment from $26.00 to $22.00 and set an “overweight” rating on the stock in a research note on Friday, August 7th. Finally, The Goldman Sachs Group set a $15.00 target price on shares of Six Flags Entertainment in a report on Friday, August 7th. Seven research analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, Six Flags Entertainment currently has a consensus rating of “Hold” and a consensus target price of $20.54.

Insiders Place Their Bets

In other news, CEO John Reilly bought 15,713 shares of the firm’s stock in a transaction that occurred on Wednesday, August 12th. The stock was acquired at an average price of $15.80 per share, with a total value 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 $4,704,228.80. This represents a 5.57% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.10% of the stock is owned by corporate insiders.

Institutional Trading of Six Flags Entertainment

A number of hedge funds have recently bought and sold shares of FUN. BlackRock Inc. acquired a new position in Six Flags Entertainment in the 2nd quarter worth approximately $339,057,000. Healthcare of Ontario Pension Plan Trust Fund purchased a new position in Six Flags Entertainment during the 4th quarter worth approximately $36,661,000. Kanen Wealth Management LLC purchased a new position in Six Flags Entertainment during the 1st quarter worth approximately $15,063,000. Bank of New York Mellon Corp purchased a new position in Six Flags Entertainment during the 2nd quarter worth approximately $11,975,000. Finally, Clearline Capital LP grew its position in Six Flags Entertainment by 2,541.5% during the 4th quarter. Clearline Capital LP now owns 565,495 shares of the company’s stock worth $8,675,000 after purchasing an additional 544,087 shares in the last quarter. 64.65% of the stock is owned by hedge funds and other institutional investors.

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.