Six Flags Entertainment Corp. (NYSE: FUN) stock traded higher Wednesday after a regulatory filing revealed substantial share purchases by funds linked to director Rehan Jaffer. The amusement park operator also announced a new executive appointment as it works to improve operations and strengthen its financial performance.

Director-Linked Funds Acquire 1.45 Million Shares

According to a Securities and Exchange Commission Form 4 filing, funds managed by H Partners Management purchased 1.45 million Six Flags shares across three trading sessions for approximately $14.93 million.

The purchases included 700,000 shares on Nov. 6 at a weighted average price of $10, followed by 350,000 shares on Nov. 9 at $10.86. The funds acquired another 400,000 shares on Nov. 10 at an average price of $10.32.

Following the transactions, the funds held 6.35 million shares, up from 4.9 million before the purchases.

Jaffer, founder and managing member of H Partners Management, serves on the Six Flags board. He may be deemed to have voting and investment authority over the shares held by the funds. However, Jaffer disclaimed beneficial ownership except to the extent of his financial interest.

Six Flags Appoints New Procurement Chief

Separately, Six Flags announced Wednesday that it appointed Adam Boal as chief procurement officer.

Boal joins from CBRE, where he managed approximately $2.5 billion in corporate spending and oversaw procurement platforms supporting about $30 billion in client spending. Previously, he managed $3.5 billion in spending at AstraZeneca.

Six Flags expects his experience in supplier relationships, technology and procurement transformation to support its operational improvement efforts.

Recent Earnings

The developments follow Six Flags' third-quarter results, released Nov. 5. Revenue declined 11% to $1.17 billion, although it exceeded Wall Street expectations. Meanwhile, the company's net loss narrowed to $366.1 million from $1.19 billion a year earlier.

However, weaker October attendance trends prompted management to lower its fourth-quarter profitability outlook. Six Flags now expects same-park adjusted EBITDA of $140 million to $150 million, compared with $167 million a year earlier.

Short Float Adds Potential For Volatility

Six Flags' elevated short interest may have amplified Wednesday's rally. About 27.81 million shares are sold short, representing 33% of the company's 84.81 million-share float. The high short float raises the possibility of a short squeeze if the stock continues to climb and bearish traders rush to cover their positions.

FUN Price Action: Six Flags Entertainment shares were up 11.02% at $11.28 at the time of publication on Wednesday, according to market data.