Six Flags Faces Class Action for Securities Fraud Post-Cedar Fair Merger, Investors Down Nearly 64%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Businesswire
- Post-Merger Lawsuit: Six Flags is facing a class action lawsuit following its merger with Cedar Fair in 2024, with a deadline of January 5, 2026, as investors have suffered losses of nearly 64% from a stock price drop from $55 to $20.
- Poor Financial Performance: The Q2 2025 financial results revealed only $930 million in revenue and an adjusted EBITDA of $243 million, significantly below market expectations, prompting the company to consider divesting non-core assets to manage a debt-to-earnings leverage ratio of 6.2x.
- Management Changes: The resignation of CEO Richard Zimmerman due to disappointing performance highlights the company's failure to achieve expected synergies post-merger, exacerbating investor confidence issues.
- Underinvestment Issues: The lawsuit alleges that Six Flags had deferred essential capital expenditures for years prior to the merger, resulting in operational deficiencies that undermine the company's competitive position and future growth potential.
Analyst Views on FUN
Wall Street analysts forecast FUN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FUN is 26.64 USD with a low forecast of 20.00 USD and a high forecast of 40.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
8 Buy
3 Hold
1 Sell
Moderate Buy
Current: 15.020
Low
20.00
Averages
26.64
High
40.00
Current: 15.020
Low
20.00
Averages
26.64
High
40.00
About FUN
Six Flags Entertainment Corporation is an amusement-resort operator with approximately 27 amusement parks, 15 water parks and nine resort properties across 17 states in the United States, Canada and Mexico. The Company has a portfolio of intellectual property, such as Looney Tunes, DC Comics and PEANUTS. Its parks are family-oriented, with recreational facilities for people of all ages. The Company's parks include Cedar Point Shores, Valleyfair, Dorney Park, Knott's Berry Farm Soak City, Canada's Wonderland, Kings Dominion, Schlitterbahn Waterpark and Resort New Braunfels, Schlitterbahn Waterpark Galveston, Six Flags Hurricane Harbor Oklahoma City, Six Flags Hurricane Harbor Concord, Six Flags St. Louis, Six Flags Hurricane Harbor Oaxtepec, Six Flags Great Adventure, Six Flags New England, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
