Why Smart Money Is Dumping Six Flags: Red Flags Everywhere

Nitorum Capital just bailed on Six Flags Entertainment (FUN), selling nearly 224k shares worth $13.15M in Q3. Not a casual trim—this is the third exit in four quarters.

The Real Story

They bought in late 2024 when Six Flags announced the massive Cedar Fair merger, hyping a “nationwide powerhouse.” Sounds great on paper. Reality? The stock tanked 67% in a year and is down 75% from all-time highs.

Why the selloff matters

The merger synergies? Never materialized. Cost savings? Nowhere. Meanwhile, capex overruns kept piling up as parks needed equipment updates. The summer season got hammered (they blame weather, but that’s convenient). Free cash flow went negative.

The Crunch

Six Flags now has $1.5B market cap vs $5B in net debt. That’s a dangerous ratio. With negative FCF and a bruised business model, they need a killer 2026 or debt becomes the real story.

The Silver Lining

Activist investor JANA Partners took a stake, which could help. If they actually restore those historical 10% net margins? Stock trades at just 5x earnings at current price. That’s upside—but it’s a big “if.”

Bottom line: When momentum funds start exiting, it’s worth asking why. Six Flags just proved that size isn’t strategy.