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Cedar Fair Stock Climbs Higher Despite Third-Quarter Earnings Miss

Earnings missed estimates, though revenue came in better than expected

Digital Content Manager
Nov 4, 2020 at 11:11 AM
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The shares of Cedar Fair, L.P. (NYSE:FUN) are up 2.4% at $28.40 this morning, following a third-quarter earnings miss, while revenue beat analysts' estimates. The amusement park concern's CEO Richard A. Zimmerman said that while the pandemic continues to challenge operations, the company was "very pleased" with demand trends for parks that have reopened. 

It's been a roller coaster of a year for FUN. The equity is already down roughly 50% in 2020, and pressure at the 140-day moving average is once again acting as a rejection region on the charts. The $24 level is still holding out as support, however, and the equity is still set for its second consecutive close atop recent pressure at the 20-day moving average. 

Despite Cedar Fair stock's negative price action, analysts remain optimistic, with five of the seven in coverage sporting "strong buy" ratings. Adding to this, the 12-month consensus price target of $34 is a 19.9% premium to current levels. 

Options traders have had a similarly sunny outlook, per FUN's 10-day call/put volume ratio of 16.36 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands higher than 88% of readings from the past year, suggesting long calls are being picked up at a quicker-than-usual pace of late. 

 

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