Acadia Healthcare (NASDAQ:ACHC) Trading Down 5.8% on Analyst Downgrade

Key Points

• Shares of Acadia Healthcare fell 5.8% following a downgrade by Bank of America, which changed its rating from buy to neutral and set a price target of $25.00.
• Despite the downgrade, the company maintains a consensus rating of "Moderate Buy" from analysts, with an average target price of $39.00.
• Acadia Healthcare reported a quarterly earnings per share of $0.83, exceeding expectations, and had revenue increased by 9.2% year-over-year, totaling $869.23 million.

Shares of Acadia Healthcare Company, Inc. (NASDAQ:ACHC - Get Free Report) were down 5.8% on Wednesday after Bank of America downgraded the stock from a buy rating to a neutral rating. Bank of America now has a $25.00 price target on the stock. Acadia Healthcare traded as low as $22.05 and last traded at $21.94. Approximately 280,886 shares traded hands during trading, a decline of 87% from the average daily volume of 2,209,954 shares. The stock had previously closed at $23.30.

ACHC has been the subject of several other reports. Raymond James Financial reaffirmed an "outperform" rating and issued a $26.00 price objective (down from $40.00) on shares of Acadia Healthcare in a report on Thursday, August 14th. Cowen restated a "buy" rating on shares of Acadia Healthcare in a research report on Thursday, August 7th. UBS Group reduced their price target on Acadia Healthcare from $45.00 to $31.00 and set a "buy" rating on the stock in a research report on Thursday, August 7th. Wall Street Zen upgraded shares of Acadia Healthcare from a "sell" rating to a "hold" rating in a report on Sunday, August 3rd. Finally, Stephens upgraded Acadia Healthcare to a "hold" rating in a research report on Monday, June 2nd. Eight investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $39.00.

Institutional Trading of Acadia Healthcare

Large investors have recently bought and sold shares of the company. Caitong International Asset Management Co. Ltd grew its position in shares of Acadia Healthcare by 11,218.2% in the first quarter. Caitong International Asset Management Co. Ltd now owns 1,245 shares of the company's stock valued at $38,000 after purchasing an additional 1,234 shares in the last quarter. UMB Bank n.a. lifted its stake in Acadia Healthcare by 149.5% during the first quarter. UMB Bank n.a. now owns 1,260 shares of the company's stock worth $38,000 after purchasing an additional 755 shares during the last quarter. Allworth Financial LP boosted its stake in Acadia Healthcare by 676.4% in the second quarter. Allworth Financial LP now owns 1,351 shares of the company's stock worth $31,000 after buying an additional 1,177 shares in the last quarter. State of Wyoming purchased a new stake in Acadia Healthcare in the fourth quarter worth approximately $56,000. Finally, EverSource Wealth Advisors LLC boosted its holdings in Acadia Healthcare by 54.8% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,404 shares of the company's stock valued at $32,000 after acquiring an additional 497 shares during the period.

Acadia Healthcare Price Performance

The company has a market capitalization of $2.01 billion, a PE ratio of 14.45, a PEG ratio of 4.43 and a beta of 0.89. The firm has a fifty day moving average of $22.20 and a two-hundred day moving average of $24.58. The company has a current ratio of 1.32, a quick ratio of 1.32 and a debt-to-equity ratio of 0.73.

Acadia Healthcare (NASDAQ:ACHC - Get Free Report) last issued its earnings results on Tuesday, August 5th. The company reported $0.83 earnings per share for the quarter, beating the consensus estimate of $0.71 by $0.12. The company had revenue of $869.23 million during the quarter, compared to analysts' expectations of $839.59 million. Acadia Healthcare had a return on equity of 8.34% and a net margin of 4.31%.Acadia Healthcare's quarterly revenue was up 9.2% compared to the same quarter last year. During the same period in the prior year, the business posted $0.91 EPS. Acadia Healthcare has set its FY 2025 guidance at 2.450-2.65 EPS. Research analysts anticipate that Acadia Healthcare Company, Inc. will post 3.38 EPS for the current fiscal year.

About Acadia Healthcare

Acadia Healthcare Company, Inc provides behavioral healthcare services in the United States and Puerto Rico. The company develops and operates acute inpatient psychiatric facilities, specialty treatment facilities comprising residential recovery facilities and eating disorder facilities, comprehensive treatment centers, and residential treatment centers, as well as facilities offering outpatient behavioral healthcare services for the behavioral healthcare and recovery needs of communities.

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