Texas Capital started off coverage on Six Flags Entertainment Corporation (SIX) on Wednesday with a Buy rating. Analyst Eric World said that following the merger between the two largest regional theme park operators, the combined entity, Six Flags Entertainment ( ...

Investors with a lot of money to spend have taken a bullish stance on Six Flags Entertainment (NYSE: FUN).And retail traders should know.We noticed this today when the positions showed up on publicly available options history that we track here at Benzinga.Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with FUN, it often means somebody knows something is about to happen.Today, Benzinga's options scanner spotted 8 options trades for Six Flags En ...

Group 1 - Six Flags Entertainment Corporation reported a strong start for its 2026 season pass program, indicating positive attendance trends [2] - The company experienced weather-related challenges previously, but the current update suggests a recovery in attendance [2]

Core Viewpoint - Six Flags Entertainment Corp. reported a significant quarterly loss of $100 million, prompting investor concerns about potential securities fraud and the company's failure to disclose financial difficulties earlier [1][2][6]. Financial Performance - The company's stock has dropped over 45% year-to-date, with a decline of more than 60% from its all-time high of over $70 in 2017, currently trading around $25 per share [3][9]. - Following the earnings release on August 6, which revealed a drastic shift from profit to a substantial loss, the company also reduced its full-year forecast, negatively impacting its market value [3][10]. Management and Strategy - CEO Selim Bassoul, who took over in late 2021 with a turnaround plan, is set to resign at the end of the year, adding to the uncertainty surrounding the company [6][14]. - Executives attributed the poor performance to bad weather and disappointing season-pass sales, raising concerns about the company's reliance on repeat customers [4][9]. Legal and Regulatory Issues - Two law firms, Schall Law Firm and Portnoy Law Firm, are investigating whether Six Flags misled shareholders regarding its financial health prior to the release of its second-quarter results [2][11]. - The investigations may lead to class-action lawsuits as investors seek accountability for the reported losses and management's prior assurances of stable growth [10][13].

Core Viewpoint - Six Flags Entertainment Corporation is under investigation for potential securities fraud and unlawful business practices following disappointing financial results and a significant drop in stock price [1][3][4]. Financial Performance - On August 6, 2025, Six Flags reported a reduction in its EBITDA guidance for the year to between $860 million and $910 million, down from a previous expectation of $1.08 billion to $1.12 billion [3]. - The downgrade in guidance is attributed to several factors, including first-half results, a smaller season-pass base, and economic volatility affecting customer behavior [3]. Management Changes - Richard Zimmerman, the president and CEO of Six Flags, is set to step down from his roles by the end of the year [3]. Market Reaction - Following the announcement of the disappointing results and guidance downgrade, Six Flags' stock price fell by $6.38 per share, or 20.78%, closing at $24.32 per share on August 6, 2025 [4].

Financial Targets & Growth Strategy - The company aims for approximately 6% CAGR (Compound Annual Growth Rate) in sustainable revenue growth from 2025 to 2028[29] - The company is targeting a Modified EBITDA margin of approximately 40% by 2028[29] - The company anticipates a ~$400 million increase in Free Cash Flow in 2028 compared to the projected 2025[30] - The company is targeting net total leverage to be less than 40x by the end of 2026[29] - The company projects net revenues of ~$38 billion in 2028[32] Synergies & Cost Savings - The company is targeting ~$180 million in synergies by the end of 2026[20, 29] - The company plans to achieve cost savings through headcount/labor reductions and non-headcount/labor reductions[194] Attendance & Guest Experience - The company aims to regain approximately 10 million visits through new rides, improved marketing, and a unified season pass strategy[21, 90, 91] - The company is focused on improving guest satisfaction to drive attendance at underpenetrated parks[22, 95, 97] - The company's strategy includes expanding low penetration parks to half of high penetration parks level, which would yield 10 million in new attendance[63] Market Position & Revenue Drivers - The company is the largest regional amusement park operator in North America, entertaining 50 million guests in 2024 on a combined basis[36] - The company aims to grow in-park revenue and expand attendance, targeting ~$38 billion in revenue by 2028[85]