Acadia Healthcare (NASDAQ:ACHC) Stock Price Up 13.9% Following Strong Earnings

Acadia Healthcare Company, Inc. (NASDAQ:ACHC) was up 13.9% during mid-day trading on Wednesday following a stronger than expected earnings report. The company traded as high as $33.65 and last traded at $33.7420. Approximately 1,389,672 shares changed hands during mid-day trading, a decline of 51% from the average daily volume of 2,807,796 shares. The stock had previously closed at $29.62.

The company reported $0.60 earnings per share for the quarter, topping the consensus estimate of $0.46 by $0.14. The company had revenue of $895.31 million for the quarter, compared to analysts’ expectations of $877.76 million. Acadia Healthcare had a negative net margin of 33.07% and a positive return on equity of 6.58%. Acadia Healthcare’s revenue for the quarter was up 5.1% compared to the same quarter last year. During the same period in the prior year, the business earned $0.72 earnings per share.

More Acadia Healthcare News

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

Wall Street Analyst Weigh In

ACHC has been the subject of several research analyst reports. TD Cowen lifted their price target on Acadia Healthcare from $30.00 to $36.00 and gave the stock a “buy” rating in a research note on Tuesday, July 14th. UBS Group increased their price objective on Acadia Healthcare from $31.00 to $39.00 and gave the company a “buy” rating in a research report on Thursday, July 9th. Leerink Partners raised their price objective on Acadia Healthcare from $30.00 to $33.00 and gave the company a “market perform” rating in a report on Wednesday, September 23rd. Barclays raised their price objective on Acadia Healthcare from $32.00 to $35.00 and gave the company an “equal weight” rating in a report on Thursday. Finally, Weiss Ratings restated a “sell (d)” rating on shares of Acadia Healthcare in a research report on Wednesday, September 9th. Eight equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $32.54.

Institutional Trading of Acadia Healthcare

Hedge funds have recently added to or reduced their stakes in the business. BlackRock Inc. bought a new position in shares of Acadia Healthcare during the second quarter valued at about $441,685,000. Jefferies Financial Group Inc. boosted its holdings in shares of Acadia Healthcare by 2.7% during the third quarter. Jefferies Financial Group Inc. now owns 3,703,240 shares of the company’s stock worth $101,839,000 after purchasing an additional 98,173 shares during the period. First Trust Advisors LP grew its stake in shares of Acadia Healthcare by 73.0% in the first quarter. First Trust Advisors LP now owns 1,689,442 shares of the company’s stock worth $39,516,000 after purchasing an additional 712,852 shares during the last quarter. Deutsche Bank AG bought a new stake in shares of Acadia Healthcare in the second quarter worth about $49,746,000. Finally, Maverick Capital Ltd. increased its holdings in Acadia Healthcare by 45.1% during the 1st quarter. Maverick Capital Ltd. now owns 1,314,116 shares of the company’s stock valued at $30,737,000 after purchasing an additional 408,697 shares during the period.

Acadia Healthcare Stock Performance

The business has a fifty day moving average of $29.27 and a 200-day moving average of $26.03. The company has a market cap of $3.44 billion, a PE ratio of -2.97, a P/E/G ratio of 10.39 and a beta of 0.64. The company has a current ratio of 1.57, a quick ratio of 1.57 and a debt-to-equity ratio of 1.20.

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.