LOS ANGELES--(BUSINESS WIRE)--Six Flags Entertainment Corporation Sued for Securities Law Violations - Contact the DJS Law Group to Discuss Your Rights - FUN. ...

Upgrades - Baird upgraded Albemarle (ALB) to Neutral from Underperform with a price target of $113, up from $81, due to optimism regarding lithium end-market demand tied to energy storage [2] - Morgan Stanley upgraded DexCom (DXCM) to Overweight from Equal Weight with a price target of $75, up from $63, citing signs of recovery from operational challenges while valuation remains at trough levels [2] - Argus upgraded Restaurant Brands (QSR) to Buy from Hold with an $85 price target, expecting strong brands to lead to higher domestic comparable sales and international unit expansion [3] - Truist upgraded Six Flags (FUN) to Buy from Hold with a price target of $23, down from $27, noting the new CEO's promising approach to improve underperforming parks [3] - Stifel upgraded Teradyne (TER) to Buy from Hold with a price target of $225, up from $162, anticipating accelerated growth due to a favorable shift in test revenue composition [4] Downgrades - Morgan Stanley downgraded Inspire Medical (INSP) to Equal Weight from Overweight with a price target of $130, up from $105, citing lack of visibility into the core business and long-term market potential [5] - Goldman Sachs downgraded Symbotic (SYM) to Sell from Neutral with an unchanged $47 price target, believing the valuation is stretched with a 185-times enterprise value to expected forward adjusted EBITDA multiple [5] - Oppenheimer downgraded Sound Point Meridian Capital (SPMC) to Perform from Outperform, removing the price target of $20, due to higher than expected negative impact on earnings from borrower call options [5] - Morgan Stanley downgraded 10x Genomics (TXG) to Equal Weight from Overweight with a price target of $20, up from $17, following a stock rally that placed the multiple in a reasonable spot relative to growth [5] - BofA downgraded PagerDuty (PD) to Underperform from No Rating with a $12 price target, citing demand headwinds and a pricing model change that may delay growth stabilization [5]

Group 1 - Six Flags Entertainment Corporation has been significantly impacted by macroeconomic headwinds and company-specific issues, leading to poor attendance and a deteriorating financial situation [1] - The company has a high leverage ratio of 6.3, which is considered precarious, especially since anything above 4 is categorized as very high [1] - Both Six Flags and Cedar Fair entered a merger process with substantial debt, contributing to the current financial challenges faced by Six Flags [1] Group 2 - While Six Flags has potential as an investment, certain AI stocks are viewed as offering greater upside potential and less downside risk [2] - The article suggests that there are undervalued AI stocks that could benefit from current economic trends, indicating a shift in investment focus away from traditional amusement park stocks [2]

Accessibility StatementSkip Navigation PHILADELPHIA, Nov. 26, 2025 /PRNewswire/ -- National plaintiffs' law firm Berger Montague PCÂ announces that a class action lawsuit against Six Flags Entertainment Corp. (NYSE: FUN) ("Six Flags" or the "Company") has been filed on behalf of investors who purchased or acquired Six Flags shares July 1, 2024 through November 5, 2025 (the "Class Period"), including in connection with the merger between Six Flags and Cedar Fair L.P. (the "Merger"). Investor Deadline: Invest ...

San Diego, California--(Newsfile Corp. - November 25, 2025) - The law firm of Robbins Geller Rudman & Dowd LLP announces that purchasers or acquirers of Six Flags Entertainment Corporation f/k/a CopperSteel HoldCo, Inc. (NYSE: FUN) common stock pursuant or traceable to the company's registration statement and prospectus issued in connection with the July 1, 2024 merger of legacy Six Flags Entertainment Corporation ("Legacy Six Flags") with Cedar Fair, L.P. ("Cedar Fair"), and their subsidiaries and affilia ...

Core Viewpoint - A class action lawsuit has been filed against Six Flags Entertainment Corporation, alleging that the company made false and misleading statements regarding its merger with Cedar Fair, L.P. and its financial health prior to the merger [1][3]. Summary by Sections Merger Details - The merger between Legacy Six Flags and Cedar Fair closed on July 1, 2024, after receiving shareholder approval on March 12, 2024. The merged entity was renamed CopperSteel HoldCo, Inc., which later changed its name to Six Flags and began trading under the ticker symbol "FUN" on the NYSE [1][3]. Allegations - The lawsuit claims that Legacy Six Flags had significantly underinvested in its parks and operations, neglecting essential maintenance and improvements for several years before the merger [3]. - It is alleged that Legacy Six Flags required millions of dollars in undisclosed capital and operational expenditures to maintain or grow its market share in the competitive amusement park industry [3]. - The complaint states that the financial projections presented to investors were unrealistic and not based on the actual conditions of the company at the time of the merger, due to the undisclosed capital needs and chronic disinvestment [3]. Stock Performance - On the merger closing date, Six Flags stock was trading above $55 per share. However, the stock price subsequently plummeted to as low as $20 per share, representing a nearly 64% decline [4].

Core Insights - The appointment of John Reilly as President and CEO of Six Flags is a strategic move aimed at addressing operational inefficiencies and driving margin expansion [3][4][6] - The company has faced significant challenges, including a 70% year-to-date stock decline and a net loss of $1.2 billion, primarily due to a $1.5 billion non-cash impairment charge [4][9][10] - The market reacted positively to the leadership change, with shares jumping approximately 7%, indicating investor optimism about the company's future [5][18] Leadership and Strategy - John Reilly brings 30 years of industry experience, having previously stabilized SeaWorld during a challenging period [2][7] - The Board of Directors, led by Marilyn Spiegel, is focused on optimizing the portfolio and has strong support from major investors, including JANA Partners, which holds a 3.9% stake [1][8] - The strategic reset aims to prioritize capital investment in rides and attractions to enhance guest experience and drive attendance [6][17] Financial Context - The impairment charge has allowed the company to reset its financial baseline, making future earnings comparisons more manageable [10][11] - Current stock trading in the $13-$14 range presents a potential upside of nearly 98% based on a consensus price target of $28.57 among analysts [12][18] Operational Challenges - The core challenge for Reilly is to reverse the decline in guest spending, which has been affected by a shift towards more season pass holders who spend less per visit [13][20] - Six Flags plans to invest in guest-facing upgrades and cut administrative costs to achieve $200 million in savings within two years [14][18] Marketing and Consumer Demand - The company is revamping its marketing strategy, including a partnership with NFL star Travis Kelce to attract younger demographics [15][18] - Early data indicates a 3% increase in revenue from 2026 season passes, despite a 5% increase in average pass price, suggesting consumer willingness to pay more for improved experiences [16][18]

Core Insights - Six Flags Entertainment is a major regional amusement park operator with a presence in 17 states across the U.S., Canada, and Mexico, focusing on themed entertainment and monetizing guest visits through various revenue streams [1][2] - The company's share price has significantly declined, down 67% over the past year and nearly 75% from its all-time high, underperforming the S&P 500 by 80 percentage points [2][5] - Six Flags currently has a market capitalization of $1.5 billion, with a substantial net debt of $5 billion, indicating financial challenges [7] Company Performance - Six Flags operates amusement parks, water parks, and resort properties, generating revenue through admissions, in-park spending, and licensing intellectual property [2] - The company has faced difficulties in integrating Cedar Fair post-merger, failing to deliver expected synergies and incurring higher capital expenditures than anticipated [5][7] - Free cash flow has turned negative as Six Flags attempts to incorporate Cedar Fair, necessitating a strong performance in 2026 to avoid worsening its debt situation [7] Investor Activity - Nitorum Capital reduced its stake in Six Flags by 223,956 shares, decreasing its exposure by approximately $13.15 million, with Six Flags now representing 3.28% of the fund's assets under management [3][4] - Despite Nitorum's exit, the involvement of activist investor JANA Partners may provide a potential turnaround opportunity for Six Flags [6][8] - If JANA can help restore Six Flags to its historical net income margins of 10%, the company would be trading at a low valuation of 5 times earnings based on current prices [8]

Core Viewpoint - The potential involvement of Travis Kelce, a prominent NFL player, in the turnaround of Six Flags Entertainment is being considered by investors, especially following a significant decline in the company's stock since the merger with Cedar Fair [1][2][15]. Company Performance - Six Flags has experienced a dramatic 73% decline in stock value since the merger with Cedar Fair in July 2022 [2]. - Attendance at Six Flags parks was down 9% year-over-year in the second quarter, and for the period ending November 2, attendance further declined by 11% [10][16]. - The company reported a poor second quarter, leading to a slashed full-year EBITD forecast [16]. Operational Challenges - Severe weather conditions, including thunderstorms and heat waves, negatively impacted attendance early in the season [3][4]. - The introduction of new rides, such as Siren's Curse, faced operational issues, including breakdowns that affected customer experience [6][7]. - Management has struggled to deliver on promises made during the merger, with no significant revenue boost from season pass sales observed [9]. Financial Health - Six Flags has a high leverage ratio of 6.3%, indicating precarious financial health, as anything above 4 is considered very high [12]. - The company is facing challenges in generating revenue from food and beverage sales due to lower attendance [10]. Leadership Changes - CEO Richard Zim is set to step down at the end of the year, with John Riley from Palace Entertainment being appointed as the new CEO, bringing turnaround experience from the theme park industry [13][17]. - Jana Partners, an activist investor firm, has taken a 9% stake in Six Flags, potentially influencing the company's direction [14][15]. Future Outlook - There is cautious optimism regarding the potential for a turnaround with new management and support from Jana Partners, although significant challenges remain [18][19]. - The company may need to clean up its balance sheet and possibly close underperforming parks to improve its situation [19].

Can Travis Kelce, the three-time Super Bowl champion tight end for the Kansas City Chiefs and the fiance of the world's biggest pop star, Taylor Swift, turn around Six Flags Entertainment, North America's largest regional amusement park operator. Now, if you asked me that question a little over a month ago, I would have said, "What are you smoking here?" But because you got to believe it or not, this is now a real question investors are grappling with. See, Six Flags as we know it today was created last yea ...