Hedge Funds Are Buying Six Flags Entertainment Corp (SIX)

Is Six Flags Entertainment Corp (NYSE:SIX) a buy?

In the financial world, there are plenty of methods investors can use to analyze their holdings. Some of the most underrated are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the best money managers can outperform the market by a very impressive margin (see just how much).

Just as key, positive insider trading sentiment is a second way to analyze the marketplace. Obviously, there are lots of incentives for an upper level exec to sell shares of his or her company, but only one, very clear reason why they would buy. Many empirical studies have demonstrated the useful potential of this tactic if piggybackers understand what to do (learn more here).

What’s more, let’s discuss the recent info about Six Flags Entertainment Corp (NYSE:SIX).

What does the smart money think about Six Flags Entertainment Corp (NYSE:SIX)?

Heading into Q3, a total of 30 of the hedge funds we track were bullish in this stock, a change of 3% from the previous quarter. With the smart money’s capital changing hands, there exists a select group of key hedge fund managers who were increasing their holdings substantially.

When using filings from the hedgies we track, Rehan Jaffer’s H Partners Management had the most valuable position in Six Flags Entertainment Corp (NYSE:SIX), worth close to $898.2 million, comprising 67.5% of its total 13F portfolio. Sitting at the No. 2 spot is Scout Capital Management, managed by James Crichton and Adam Weiss, which held a $135.6 million position; 2.2% of its 13F portfolio is allocated to the company. Other hedgies that hold long positions include Jim Simons’s Renaissance Technologies, Mark Broach’s Manatuck Hill Partners and Panayotis Takis Sparaggis’s Alkeon Capital Management.

Consequently, certain bigger names have been driving this bullishness. H Partners Management, managed by Rehan Jaffer, created the biggest position in Six Flags Entertainment Corp (NYSE:SIX). H Partners Management had 898.2 million invested in the company at the end of the quarter. James Crichton and Adam Weiss’s Scout Capital Management also made a $135.6 million investment in the stock during the quarter. The other funds with brand new SIX positions are Jim Simons’s Renaissance Technologies, Mark Broach’s Manatuck Hill Partners, and Panayotis Takis Sparaggis’s Alkeon Capital Management.

What do corporate executives and insiders think about Six Flags Entertainment Corp (NYSE:SIX)?

Bullish insider trading is best served when the primary stock in question has experienced transactions within the past 180 days. Over the latest 180-day time period, Six Flags Entertainment Corp (NYSE:SIX) has seen 2 unique insiders purchasing, and 4 insider sales (see the details of insider trades here).

We’ll also take a look at the relationship between both of these indicators in other stocks similar to Six Flags Entertainment Corp (NYSE:SIX). These stocks are Priceline.com Inc (NASDAQ:PCLN), Carnival plc (ADR) (NYSE:CUK), MakeMyTrip Limited (NASDAQ:MMYT), Orbitz Worldwide, Inc. (NYSE:OWW), and Cedar Fair, L.P. (NYSE:FUN). All of these stocks are in the general entertainment industry and their market caps match SIX’s market cap.