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Six Flags Stock Jumps 15% as Markets Post Gains

Sig Flax (SIX) is one of today’s market movers, rising 15% in early trading as investors react positively to the $2trn bailout approved by Congress, which includes $500bn in government-backed loans specifically targeted to battered businesses, such as the tourism and leisure industry.

The amusement park group’s share price history shows that the stock bounced back from a sharp fall back on March 18 when it was traded at $10.36, to $17 so far today, accumulating a 5-day gain of 51.5%.

 

six flag stock chart

 

The Texas-based company recently appointed Mike Spanos as its new chief executive to manage the 26-property business that currently faces increasing operating expenses and a significant debt burden that brought down its earnings per share by nearly 35% by the end of 2019.

Spanos, a former PepsiCo executive with more than 25 years of experience in business, was appointed as the company’s new boss in November 2019, replacing Jim Reid-Anderson as head of the business.

The company has nearly $320m in debt obligations due in 2020, including principal and interest payments, and holds nearly $174.2bn in cash along with around $330m available in revolving debt. Furthermore, Six Flag’s Balance Sheet shows a long-term-debt-to-assets ratio of nearly 95%, as the company currently operates with negative equity.

Some of the company’s theme parks have been closed down temporarily due to the coronavirus outbreak in the US, which could affect the company’s near-term liquidity, even though investors seem to be assured about the company’s cash stockpile and the recently approved bailout, which could be exactly what the company needs now to continue its normal operations.

Six Flags is currently outperforming the most important stock market benchmarks including the S&P 500 which has gained 5% gain so far today, along with the Dow Jones US Travel & Leisure Index, which jumped by 6% in morning trading.

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    Alejandro Arrieche

    Alejandro is a financial writer with 7 years of experience in financial management and financial analysis. He writes technical content about economics, finance, investments, and real estate and have also assisted financial businesses in building their digital marketing strategy. His favorite topics are value investing and financial analysis.

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