Acadia Healthcare (NASDAQ:ACHC) Stock Rating Raised to "Buy" at Wall Street Zen

Key Points

• Wall Street Zen upgraded Acadia Healthcare to “Buy” from “Hold.” Analyst views remain mixed overall: MarketBeat reports a consensus “Hold” rating and an average price target of $32.54.
• Acadia’s third-quarter results beat expectations, with EPS of $0.60 versus $0.46 forecast and revenue of $895.3 million versus $877.8 million expected; revenue rose 5.1% year over year. The company also raised its full-year outlook.
• Several analysts raised their price targets, including Guggenheim to $41 and Cantor Fitzgerald to $39, though some retained neutral or equal-weight ratings; quarterly EPS was lower than the $0.72 reported a year earlier.

Acadia Healthcare (NASDAQ:ACHC - Get Free Report) was upgraded by equities researchers at Wall Street Zen from a "hold" rating to a "buy" rating in a research report issued to clients and investors on Saturday, Wall Street Zen reports.

A number of other analysts also recently issued reports on ACHC. Barclays raised their price target on shares of Acadia Healthcare from $32.00 to $35.00 and gave the stock an "equal weight" rating in a report on Thursday. Cantor Fitzgerald boosted their target price on Acadia Healthcare from $30.00 to $39.00 and gave the company a "neutral" rating in a report on Friday. Guggenheim boosted their price target on Acadia Healthcare from $39.00 to $41.00 and gave the stock a "buy" rating in a research note on Friday. Leerink Partners boosted their price objective on shares of Acadia Healthcare from $30.00 to $33.00 and gave the company a "market perform" rating in a research report on Wednesday, September 23rd. Finally, KeyCorp increased their target price on shares of Acadia Healthcare from $30.00 to $40.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 14th. Eight investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, Acadia Healthcare presently has a consensus rating of "Hold" and an average target price of $32.54.

Acadia Healthcare Stock Performance

ACHC stock opened at $37.00 on Friday. The firm has a market cap of $3.44 billion, a PE ratio of -2.97, a P/E/G ratio of 9.54 and a beta of 0.64. The business has a 50 day moving average of $29.40 and a 200-day moving average of $26.14. The company has a quick ratio of 1.57, a current ratio of 1.57 and a debt-to-equity ratio of 1.20. Acadia Healthcare has a 12-month low of $11.43 and a 12-month high of $39.38.

Acadia Healthcare (NASDAQ:ACHC - Get Free Report) last announced its earnings results on Wednesday, November 4th. The company reported $0.60 earnings per share for the quarter, topping analysts' consensus estimates of $0.46 by $0.14. Acadia Healthcare had a positive return on equity of 6.19% and a negative net margin of 33.44%. The business had revenue of $895.31 million for the quarter, compared to analyst estimates of $877.76 million. During the same period in the prior year, the company earned $0.72 EPS. The company's quarterly revenue was up 5.1% compared to the same quarter last year. As a group, sell-side analysts expect that Acadia Healthcare will post 1.59 earnings per share for the current year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. BlackRock Inc. bought a new position in Acadia Healthcare during the 2nd quarter valued at approximately $441,685,000. Jefferies Financial Group Inc. bought a new stake in Acadia Healthcare in the 2nd quarter worth about $106,458,000. Deutsche Bank AG purchased a new position in shares of Acadia Healthcare in the 2nd quarter worth $49,746,000. First Trust Advisors LP increased its holdings in Acadia Healthcare by 73.0% during the first quarter. First Trust Advisors LP now owns 1,689,442 shares of the company's stock valued at $39,516,000 after buying an additional 712,852 shares during the last quarter. Finally, Braidwell LP lifted its position in shares of Acadia Healthcare by 76.7% during the 2nd quarter. Braidwell LP now owns 1,141,477 shares of the company's stock valued at $33,708,000 after buying an additional 495,577 shares in the last quarter.

Key Stories Impacting Acadia Healthcare

Here are the key news stories impacting Acadia Healthcare this week:

• Positive Sentiment: Acadia reported third-quarter EPS of $0.60, ahead of the $0.46 consensus, and revenue of $895.3 million, above estimates and up 5.1% year over year. The company also raised its full-year guidance, with its outlook described as slightly above expectations. Article
• Positive Sentiment: Guggenheim raised its target to $41 and kept a Buy rating; RBC lifted its target from $31 to $41 and maintained Outperform. These revisions reinforce optimism about further gains. Article Article
• Neutral Sentiment: Cantor Fitzgerald raised its target to $39 but retained a Neutral rating, signaling a more cautious view than the bullish analyst calls. Analyst rating
• Negative Sentiment: Quarterly EPS was below the $0.72 reported a year earlier. Barclays raised its target to $35 but kept an Equal Weight rating; that target is below the cited current share price, suggesting limited upside in its view. Analyst rating

Acadia Healthcare Company Profile

Acadia Healthcare Company, Inc is a provider of behavioral healthcare services headquartered in Franklin, Tennessee. The company operates psychiatric hospitals, specialty treatment facilities and outpatient programs focused on mental health and substance use disorders.

Acadia's services include inpatient and outpatient psychiatric care, addiction treatment, residential treatment, eating-disorder programs, and services for children and adolescents. Its facilities serve patients with a range of behavioral health conditions, including depression, anxiety, trauma-related disorders and substance use disorders.

Founded in 2005, Acadia operates primarily in the United States and also has a significant presence in the United Kingdom through its ownership of Priory, a behavioral healthcare provider.

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