Six Flags Entertainment (FUN) stock was down on Monday, as the theme park operator can’t take the summer heat. A series of issues have plagued Six Flags this summer, hurting its financial performance and weighing down the company’s shares. Among these problems are lower attendance and displeasure with park quality. These issues have led to the company reporting heavy losses in the past two quarters. Additionally, the company’s total debt stands at a staggering $5.29 billion.
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Other issues that have haunted Six Flags this summer are poor weather and ride malfunctions. It’s been a hot summer, and many people have chosen to stay inside rather than subject themselves to the blazing sun while standing in line for rides. On top of that, Siren’s Curse has caused problems. This is a new ride that opened at Cedar Point in late June. Since then, the roller coaster has broken down multiple times. It’s not a good look for Six Flags when one of its new rides that it has advertised has trouble staying open for parkgoers.
While all of this is bad news for Six Flags, it isn’t the only theme park that has suffered this summer. Attendance is down across the industry, with several other theme parks failing to draw in visitors. This has also affected sales of season passes, which are larger purchases that help encourage return visits and additional spending.
Six Flags Stock Movement Today
Six Flags stock was down 1.17% on Monday, extending a 46.34% drop year-to-date. FUN stock is likely to see continued negative movement if it can’t get its act together. Especially since the summer season, its busiest season of the year, ends in just one month.
Is Six Flags Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Six Flags is Moderate Buy, based on five Buy, two Hold, and a single Sell rating over the past three months. With that comes an average FUN stock price target of $30.25, representing a potential 19.8% upside for the shares.
