Bearish Analyst Attention Weighs on FUN Shares

The Cedar Point parent has been trading in a tight range on the charts in recent weeks

by Josh Selway

Published on Dec 2, 2019 at 10:20 AM

The shares of Cedar Fair, L.P. (NYSE:FUN) have been consolidating in the $55 area since pulling back from their early October highs roughly 10 points north of this region. Today, the amusement park stock is down 1.2% at $55.26, due to negative analyst attention from B. Riley. 

The brokerage firm dropped its rating on FUN to "neutral" from "buy," and trimmed its price target to $57 from $60. More specifically, B. Riley doesn't think the strong traffic growth of 2019 will be sustainable next year. The rest of the eight analysts in coverage have "strong buy" ratings.

Options trading is virtually nonexistent on the equity, but those who have picked up contracts on Cedar Fair have preferred calls. Data from the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows 66 long calls to just 4 long puts. The 60 strike in particular saw heavy attention, with traders building positions in the December and January series.

With that being said, interest in Cedar Fair options has been slightly hotter than usual. Data shows total open interest is 8,428 contracts, a number that ranks in the 74th annual percentile.


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