Nitorum Capital Pares Down Six Flags Position: Should Investors Be Worried About the Stock?

FUN +1.70%

Key Points

• Nitorum sold 223,956 Six Flags shares, a net position change estimated at $13.15 million.

• The transaction represented 1.04% of 13F reportable assets under management.

• The firm's post-trade holding is 821,782 shares, valued at $18.67 million.

• Six Flags now accounts for 3.28% of fund AUM, placing it outside the top five holdings.

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Nitorum Capital, L.P. cut its stake in Six Flags Entertainment Corporation (NYSE:FUN) by 223,956 shares in the third quarter, reducing exposure by an estimated $13.15 million, according to the Nov. 14, 2025, SEC filing.

What happened

According to its Nov. 14, 2025, SEC filing, Nitorum Capital reduced its position in Six Flags Entertainment during the third quarter.

The sale of 223,956 shares brought its holding to 821,782 shares, now valued at $18.67 million as of Sept. 30, 2025.

What else to know

Nitorum sold shares, bringing Six Flags to 3.28% of its 13F assets under management.

The firm's top holdings after the filing:

1. Martin Marietta Materials (NYSE:MLM): $50 million (8.8% of AUM)

2. Churchill Downs Inc (NASDAQ:CHDN): $45 million (8% of AUM)

3. MannKind Corp (NASDAQ:MNKD): $35 million (6.2% of AUM)

4. Dell Technologies Inc (NYSE:DELL): $33 million (5.9% of AUM)

5. RB Global Inc (NYSE:RBA): $32 million (5.6% of AUM)

As of Nov. 24, 2025, shares were priced at $14.62, down 67% over the past year, underperforming the S&P 500 by 80 percentage points.

Company Overview

Metric

Value

Revenue (TTM)

$3.14 billion

Net income (TTM)

$-1.75 billion

Price (as of market close 2025-11-24)

$14.62

One-year price change

-67%

Company Snapshot

Six Flags Entertainment:

• Operates amusement parks, water parks, and resort properties across North America, generating revenue through admissions, in-park spending, and licensing of intellectual property such as Looney Tunes, DC Comics, and PEANUTS.

• Has a business model centered on delivering themed entertainment experiences and monetizing guest visits via ticket sales, food and beverage, merchandise, and branded experiences.

• Serves families, thrill-seekers, and tourists, primarily targeting leisure consumers in the United States, Canada, and Mexico.

Six Flags Entertainment is a leading regional amusement park operator with a broad footprint across 17 states in the U.S., Canada, and Mexico.

The company leverages a diverse portfolio of branded attractions and intellectual property partnerships to drive guest engagement and repeat visitation.

Its scale, established brand, and unique licensing agreements provide a competitive edge in the North American leisure and entertainment sector.

Foolish take

After opening a position in Six Flags in late 2024, Nitorum continued whittling away at its stake in the company, selling shares in three of the last four quarters.

Nitorum's purchase was made around the same time Six Flags announced its massive acquisition of Cedar Fair last year, creating a nationwide amusement park powerhouse.

However, the company's share price has declined since the merger -- now down nearly 75% from its all-time high -- as the newly formed company has struggled to combine its operations profitably.

After not delivering on the synergies and cost savings expected at the announcement of the deal -- while also paying more than anticipated on capital expenditures to update equipment and renovate parks -- Six Flags saw activist investor JANA Partners take a stake in the company.

While JANA's involvement should help (considering its impressive track record), Nitorum's decision to reduce its exposure to the stock still may make sense, as it has become a risky bet.

Following a disappointing (and all-important) summer season that was hampered by adverse weather, according to management, Six Flags now has a market capitalization of only $1.5 billion, versus $5 billion in net debt. With its free cash flow turning negative as it tries to incorporate Cedar Fair into its operations, Six Flags is in desperate need of a good 2026 to turn things around, or its debt load could become a problem.

That said, if JANA can help Six Flags turn things around and return the company to its historical 10% net income margins, the company would only be trading at 5 times earnings using today's price.

Glossary

13F reportable assets: Securities that institutional investment managers must disclose quarterly to the SEC on Form 13F.Assets under management (AUM): The total market value of investments managed by a fund or investment firm.Position: The amount of a particular security or investment held by an individual or institution.Exposure: The degree to which a portfolio is affected by changes in the value of a particular asset or market.Top holdings: The largest investments in a fund's portfolio, typically by market value.Licensing of intellectual property: Granting rights to use brands, characters, or trademarks in exchange for fees or royalties.Branded experiences: Attractions or services themed around well-known brands or characters to enhance customer engagement.TTM: The 12 months ending with the most recent quarterly report.Competitive edge: An advantage that allows a company to outperform its rivals in the marketplace.Reportable assets: Investments that must be disclosed to regulators due to their size or type.

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Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends MannKind and Six Flags Entertainment. The Motley Fool recommends Churchill Downs. The Motley Fool has a disclosure policy.

Nitorum Capital Pares Down Six Flags Position: Should Investors Be Worried About the Stock? was originally published by The Motley Fool