Acadia Healthcare (NASDAQ:ACHC) Trading Down 5.8% After 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.

Acadia Healthcare Company, Inc. (NASDAQ:ACHC - Get Free Report) shares were down 5.8% during trading 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, down from their previous price target of $27.00. 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.

A number of other brokerages have also commented on ACHC. Guggenheim decreased their price objective on Acadia Healthcare from $36.00 to $29.00 and set a "buy" rating for the company in a report on Thursday, August 7th. UBS Group dropped their target price 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 raised shares of Acadia Healthcare from a "sell" rating to a "hold" rating in a report on Sunday, August 3rd. Mizuho reduced their target price on Acadia Healthcare from $32.00 to $22.00 and set a "neutral" rating on the stock in a research note on Wednesday, August 13th. Finally, Barclays reduced their price objective on Acadia Healthcare from $28.00 to $20.00 and set an "equal weight" rating on the stock in a research note on Thursday, August 7th. Eight research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $39.00.

Institutional Investors Weigh In On Acadia Healthcare

A number of hedge funds have recently modified their holdings of the business. Orion Porfolio Solutions LLC grew its position in shares of Acadia Healthcare by 68.8% during the 2nd quarter. Orion Porfolio Solutions LLC now owns 31,479 shares of the company's stock valued at $714,000 after acquiring an additional 12,831 shares during the period. State of Wyoming lifted its stake in shares of Acadia Healthcare by 1,631.1% during the 2nd quarter. State of Wyoming now owns 24,356 shares of the company's stock valued at $553,000 after buying an additional 22,949 shares in the last quarter. Caxton Associates LLP lifted its stake in shares of Acadia Healthcare by 1,234.5% during the 2nd quarter. Caxton Associates LLP now owns 173,482 shares of the company's stock valued at $3,936,000 after buying an additional 160,482 shares in the last quarter. FORA Capital LLC lifted its stake in shares of Acadia Healthcare by 121.9% during the 2nd quarter. FORA Capital LLC now owns 46,562 shares of the company's stock valued at $1,056,000 after buying an additional 25,582 shares in the last quarter. Finally, Headlands Technologies LLC lifted its stake in shares of Acadia Healthcare by 149.4% during the 2nd quarter. Headlands Technologies LLC now owns 64,828 shares of the company's stock valued at $1,471,000 after buying an additional 38,835 shares in the last quarter.

Acadia Healthcare Stock Performance

The firm has a market cap of $1.98 billion, a PE ratio of 14.19, a PEG ratio of 4.28 and a beta of 0.89. The company has a current ratio of 1.32, a quick ratio of 1.32 and a debt-to-equity ratio of 0.73. The firm's 50 day simple moving average is $22.09 and its 200 day simple moving average is $24.06.

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

Acadia Healthcare Company Profile

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.