Grand Prairie-based Six Flags Entertainment Corp., operator of Six Flags Over Texas in Arlington and other theme parks, said Thursday that it will split its shares 2-for-1.
The move comes less than a year after the stock resumed trading following the company's bankruptcy reorganization.The shares have roughly doubled in that time.The number of outstanding common shares will double to about 54 million, the company said.On June 27, shareholders will receive an additional share of stock for each one they owned as of June 15, the company said.Ian Zaffino, an analyst with investment firm Oppenheimer & Co., said the stock split is "a big move" and signals a "bullishness" on the part of Six Flags' management. "The stock has been very successful," Zaffino said. "It's a sign of more value to come."The price of shares are halved in a split, which typically occurs when a company believes its stock price is getting too high and wants to make it attractive to more investors.Six Flags shares were relisted on the New York Stock Exchange on June 21, closing that day at $36.49. On April 30, 2010, the company had emerged from Chapter 11 bankruptcy, which put a group of creditors in charge.After the stock split was announced, Six Flags shares (ticker: SIX) traded as high as $74.62 before closing at $73.80, up $1.50.In February, the company said it would buy back up to $60 million of common shares over three years as a sign of confidence in the business. This week, the company said it repurchased $20 million of shares at an average price of $66.03 during the first quarter.The day after it announced the repurchase plan, four top executives bought thousands of shares worth a total of $2 million on the open market.Sandra Baker, 817-390-7727Have more to add? News tip? Tell us
