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Six Flags Stock Jumps After Activist Jana Partners Pushes for Company Sale
Shares of Six Flags Entertainment Corp. (NYSE: FUN) climbed in pre-market trading after activist hedge fund Jana Partners disclosed a significant stake and publicly pressured the company's board to explore a sale.
Activist Pressure from Jana Partners
Jana Partners revealed in a letter to the board that it holds a roughly 9% economic stake in Six Flags, valued at approximately $200 million, according to a report from Investing.com. The fund is urging the board to immediately hire an investment bank and conduct a strategic review, which could culminate in the sale of the business.
The activist's push stems from frustration with the company's performance, particularly what it called "deeply disappointing" second-quarter results. The source material noted that Six Flags' Q2 report featured revenue well below analyst expectations and a significant per-share loss, contrary to a consensus estimate for a profit.
AdMarket Reaction and Context
Investors reacted to the news by bidding up the stock, anticipating a potential takeover premium if a sale materializes. In pre-open trading, Six Flags shares were up 1.1% to $12.44.
The activist campaign provides a catalyst for a stock that has struggled significantly. Prior to this move, the shares had lost more than half their value from a 52-week high of $27.37 and were trading just above the 52-week low of $12.00. The gains are company-specific, as the broader market backdrop was neutral and no major news was reported by sector peers.
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