Shares of Six Flags Entertainment (FUN) climbed nearly 18% on Tuesday after activist hedge fund Jana Partners revealed a new stake in the company. Jana said it teamed up with National Football League player Travis Kelce and other investors to buy around 9% of Six Flags, worth about $200 million. The announcement lifted the theme park operator’s market value to about $2.6-$2.7 billion.
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Before this move, the stock had fallen almost 50% this year. The decline followed weak attendance and bad weather across its parks. Jana’s managing partner, Scott Ostfeld said at an investor conference that Six Flags can improve both its brand and its guest experience. He added that the company has room to modernize its systems, refresh its leadership, and even explore a sale.
A Star Investor Joins the Ride
Travis Kelce is not joining the Six Flags board, but his name adds attention to the group. He said he has loved theme parks since childhood and shared videos from earlier visits on social media. Kelce also spoke about his interest in rides on his podcast “New Heights,” which he hosts with his brother, former Philadelphia Eagles player Jason Kelce.
Celebrity ties often help activist investors build public awareness, especially at consumer brands. Jana has used that playbook before. The firm worked with Dwyane Wade and CC Sabathia during a past campaign at Freshpet (FRPT).
Leadership and Next Steps
Along with Kelce, Jana also brought in Glenn Murphy, the former Gap (GPS) chief executive, and Dave Habiger, the chair of Reddit, as possible board nominees. Six Flags recently said that its chief executive, executive chair, and lead independent director will all step down by the end of this year.
The company already has other activist investors on board. Sachem Head Capital Management placed an executive on the Six Flags board earlier this month. Meanwhile, Land & Buildings has been urging the company to sell or spin off its real estate into a trust. For now, investors appear hopeful that the mix of new capital, new voices, and a familiar sports star can help Six Flags recover from a rough year and bring more visitors back to its parks.
Is FUN a Good Stock to Buy?
Six Flags Entertainment boasts a relatively positive outlook among the Street’s analysts, with a Moderate Buy consensus rating. The average FUN stock price target stands at $31.08, implying a 21.26% upside from the current price.
