SeaWorld Entertainment Inc. (NYSE:SEAS) is the subject of a class action investigation by law firm Andrews & Springer LLC. The law firm alleges that it is investigating the company over a possible breach of fiduciary duty. The announcement comes as the company prepares to unveil its first quarter earnings on May 9, 2017.
Class Action Lawsuit
Information is still sketchy on what the company could have done wrong in relation to its duty of protecting investor’s interests. The only thing that is clear at the moment is that the law firm is encouraging owners of SeaWorld Entertainment shares to log in to their website if they wish to protect their investments and receive additional information.
Even as Andrew & Springer lodges investigations into the company’s operations it appears some investors remain confident about the company’s long-term prospects. Hill Path Holdings is fresh from announcing a 7.7% stake in the theme park and Entertainment Company.
SeaWorld Positive Analysts Ratings
The company also continues to enjoy favorable ratings on the Street equity researchers at Janney Montgomery having reiterated a buy rating on the stock. In a research note issued to investors on April 13th 2017, the researchers reiterated a share price target of $24 representing potential upside of more than 30% from the current levels.
Ahead of the company’s earnings call on May 9 researchers at Zack Investment Research remain confident of the theme park company posting sales of $207.09 for the first quarter. Consensus estimates from eight analysts currently stands at the company posting revenues of $213.15 million with the lowest estimate standing at $199.5 million.
Should SeaWorld meet analysts’ estimates on sales then the same would represent a negative year over year growth given that it posted sales of $220.4 million for the same quarter last year.
SeaWorld Entertainment stock has been on an impressive run in the market this year and is currently trading at highs of $17.77 a share. The stock is slowly closing in on its 52-week highs of $20.17 a share. It now awaits to be seen if the class action lawsuit at hand will have any impact more so in affecting investor’s sentiments going forward.