Six Flags Stock Surges 9% on Activist Campaign from Jana Partners
The activist investor has teamed up with NFL star Travis Kelce, building a stake in the amusement park operator to push for strategic changes.
Shares of Six Flags Entertainment (NYSE: FUN) surged more than 9% on Tuesday following a report that activist investor Jana Partners has built a significant stake in the company and is preparing to push for strategic changes, teaming up with an unconventional ally: NFL superstar Travis Kelce.
The amusement park operator’s stock climbed 9.28% to close at $23.79 in New York trading, its biggest single-day gain in over a month. The rally was sparked by a stating that Jana has accumulated a stake of approximately 9% in the company, a move that typically precedes a formal push to influence corporate strategy.
The involvement of Kelce, the Kansas City Chiefs tight end known for his high-profile celebrity status, marks a novel approach for a Wall Street activist campaign. While the precise role Kelce will play remains unclear, his participation is expected to attract considerable media attention and broaden the campaign's appeal, particularly to retail investors. It represents a creative tactic by Jana to amplify its message as it seeks to unlock value at the regional theme park giant, which has seen its stock trade well below its 52-week high of $49.77.
With a market capitalization of approximately $2.2 billion, Six Flags operates 27 parks across the United States, Mexico, and Canada. The company, like others in the leisure and travel industry, has been navigating shifting consumer spending habits and operational challenges in a post-pandemic landscape.
Jana Partners, founded by Barry Rosenstein, has a long history of successful activist campaigns at companies including Whole Foods Market, Conagra Brands, and Tiffany & Co. The firm is known for its meticulous, outcome-focused approach, often advocating for operational improvements, divestitures of non-core assets, or an outright sale of the company to maximize shareholder returns.
Six Flags is no stranger to activist pressure. The company has recently been a target for other investment firms, including Land & Buildings Investment Management and Sachem Head Capital Management, which have primarily focused on pressuring the company to monetize its extensive real estate portfolio. The arrival of Jana Partners, now reportedly a major shareholder, intensifies the pressure on Six Flags' management and board to consider significant strategic alternatives.
While Jana has not yet publicly detailed its specific demands, activist campaigns of this nature often focus on areas such as optimizing ticket pricing, enhancing park operations, re-evaluating capital expenditures, or exploring strategic transactions. The firm will likely file a formal 13D with the Securities and Exchange Commission in the coming days, which could provide more insight into its thesis and objectives.
Investors will be closely watching for a response from Six Flags Entertainment. The company has not yet issued a public statement regarding the Jana and Kelce campaign. The board must now contend with a multi-pronged activist front, adding a new layer of complexity to its long-term strategy.