On August 15, two owners of Six Flags (SIX) Arik Ruchim (Director) and Rehan Jaffer lapped up a total of 10,50,000 shares of the company (525,000 shares each) at $23.81 per share. Shares of SIX closed over 3% higher on Monday and were trading 2% higher early Tuesday.
TipRanks’ Insider Trading Tool shows Insiders at Six Flags are clearly optimistic about the stock’s near-term prospects and have bought SIX stock worth a whopping $57 million in the last three months.
The tool also shows that Insider Confidence Signal is currently Very Positive for Six Flags.
Interestingly, TipRanks also provides a list of hot stocks that boasts of either a Very Positive or Positive insider confidence signal.
What Does Six Flags Do?
Based in the U.S., Six Flags Entertainment Corp. engages in the operation of theme parks under the brand name Six Flags. It offers state-of-the-art and traditional thrill rides, water attractions, themed areas, concerts and shows, restaurants, game venues, and retail outlets.
Last week, the company reported disappointing Q2 results, missing analysts’ expectations for both revenues and earnings.
Wall Street’s Take on Six Flags
In a sharp contrast to the insider buying activity, Jefferies analyst David Katz on Monday slashed the price target on Six Flags Entertainment by 47% to $32 (from $60) but reiterated a Buy rating.
Katz stated, “With attendance of 15% below 2019 and costs equal to 2019, we believe the 2Q22 downside is self-inflicted rather than from industry or macro, as the strategic shift brought the risk of early-stage volatility. We believe SIX’s business model and assets are more productive than the 2Q22 demonstrated and patience is the right course.”
As per TipRanks, analysts are cautiously optimistic about the stock and have a Moderate Buy consensus rating, which is based on six Buys and five Holds. Six Flags’ average price forecast of $30.90 implies 24.5% upside potential.
After losing half of its market capitalization in the past six months, Six Flags stock has recovered 17% over the past month.
Interestingly, it’s not just the corporate Insiders that are bullish on the stock. TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Six Flags, with a whopping 10.8% of investors on TipRanks increasing their exposure to SIX stock over the past 30 days.
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