Many stocks have been testing new highs in 2020, and one of the most notable is Six Flags Entertainment Corporation (SIX). Currently, SIX is trading at $27.06 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $20.88.
To add more color to this target, the company’s high over the last year is $59.52 and the low is $8.75. Over the last 52 weeks, SIX is down -54.54% while the S&P 500 is up 1.21%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, SIX reported a profit of $94.74 million. Six Flags Entertainment Corporation also saw revenues increase to $102.5 million. In addition, SIX has free cash flow of -$113.84 million as of 03-2020 The company’s EBITDA came in at -$46.2 million which compares well with its peers.
SIX booked profit margins of 11.20%, its Return on Equity (ROE) is -22.20%, and its Return on Assets is 5.70%. All told, it is clear that, SIX needs to be on your watchlist.
About Six Flags Entertainment Corporation
If readers are unfamiliar, Six Flags Entertainment Corporation owns and operates regional theme and waterparks under the Six Flags name. The company’s parks offer various thrill rides, water attractions, themed areas, concerts and shows, restaurants, game venues, and retail outlets. It owns and operates 26 parks in the United States, Mexico, and Canada. The company was formerly known as Six Flags, Inc. and changed its name to Six Flags Entertainment Corporation in April 2010. Six Flags Entertainment Corporation was founded in 1961 and is based in Grand Prairie, Texas.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. SIX has a short ratio of 2.15 and outstanding shares of 84.66M.
SIX has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 4.56 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 1.92. Six Flags Entertainment Corporation SIX also noted assets of $2.72 billion at the end of the last quarter. Investors should also keep an eye on sector updates as SIX has historically followed its peers on positive news.
All told, Six Flags Entertainment Corporation SIX has strung together solid data and demonstrated underlying fundamentals. At its current valuation, SIX represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Six Flags Entertainment Corporation SIX is now commanding a market cap of 2.29B and a float of 78.63M. SIX is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of SIX stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in SIX, either long or short, and we have not been compensated for this article.