Six Flags Hits All-Time Low as Fatal Coaster Fall Spurs Safety and Legal Storm
FUN is trading near its 52-week low of $8.37 (1.9% above the low).
Summary
Shares of Six Flags fell to an all-time low for a fourth straight session after a 42-year-old man was ejected from the Goliath hypercoaster at Six Flags Over Georgia on Monday and died; four children were injured. The company has now closed nine coasters across six parks as a precaution, up from the eight reported earlier this week. UBS analyst Arpine Kocharyab told clients the direct P&L hit depends on whether the investigation finds a systemic restraint or design failure, but flagged reputational spillover into attendance and pass sales as the bigger risk given the company's leverage. That risk is amplified by a September lawsuit representing 100 plaintiffs over injuries tied to the X2 coaster at Magic Mountain and a separate investor suit alleging management misled shareholders about deferred maintenance ahead of the 2024 Cedar Fair merger. The stock is down more than 60% over the past year and sits near its 52-week low, with the accident investigation still open and no root cause established.
At the time of this announcement, FUN was trading at $8.53 on NYSE in the Trade & Services sector, with a market capitalization of approximately $872.8M. The 52-week trading range was $8.37 to $27.37. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.