Shares of SeaWorld Entertainment Inc. tumbled 7% in premarket trade Tuesday, putting them on track to open at a record low, after the theme park operator said it would stop paying out dividends. The company said late Monday that it would redeploy the capital by "opportunistically repurchasing the company's shares" during the rest of the year. Analyst Tyler Batory at Janney Montgomery Scott suggested that wasn't a great idea, as it supports his belief that the company's turnaround will take longer than expected. "While a dividend cut is not a complete surprise, our view is that a portion of the money could be better spent reinvesting in the business and building new attractions," Batory wrote in a note to clients. He noted that some of SeaWorld's debt covenants limit spending on capital expenditures. The stock had already plunged 36% year to date through Monday, while rival Six Flags Entertainment Corp. shares had lost 5% and the S&P 500 had gained 4.7%.
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