Acadia Healthcare (NASDAQ:ACHC) Shares Climb 13.9% After Strong Earnings

Acadia Healthcare Company, Inc. (NASDAQ:ACHC) shares shot up 13.9% during mid-day trading on Wednesday following a better than expected earnings announcement. The company traded as high as $33.65 and last traded at $33.7420. Approximately 1,389,672 shares were traded during mid-day trading, a decline of 51% from the average session 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 analysts’ consensus estimates of $0.46 by $0.14. The firm had revenue of $895.31 million during 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%. The firm’s revenue was up 5.1% on a year-over-year basis. During the same period in the prior year, the company earned $0.72 EPS.

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 Analysts Forecast Growth

ACHC has been the subject of a number of recent research reports. Guggenheim boosted their price objective on Acadia Healthcare from $39.00 to $41.00 and gave the company a “buy” rating in a research note on Friday. UBS Group raised their target price on shares of Acadia Healthcare from $31.00 to $39.00 and gave the stock a “buy” rating in a research note on Thursday, July 9th. Raymond James Financial downgraded shares of Acadia Healthcare from a “strong-buy” rating to an “outperform” rating and set a $39.00 price target on the stock. in a report on Monday, September 28th. KeyCorp upped their price target 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. Finally, Leerink Partners increased their price objective on shares of Acadia Healthcare from $30.00 to $33.00 and gave the stock a “market perform” rating in a research note on Wednesday, September 23rd. Eight analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $32.54.

Institutional Investors Weigh In On Acadia Healthcare

Hedge funds and other institutional investors have recently modified their holdings of the stock. Allworth Financial LP purchased a new stake in shares of Acadia Healthcare in the 2nd quarter valued at $45,000. Global Retirement Partners LLC acquired a new position in Acadia Healthcare during the 2nd quarter worth about $68,000. Integrated Wealth Concepts LLC purchased a new position in Acadia Healthcare during the 2nd quarter valued at about $79,000. Quantbot Technologies LP purchased a new position in Acadia Healthcare during the 2nd quarter valued at about $88,000. Finally, Pinnacle Wealth Planning Services Inc. grew its position in Acadia Healthcare by 20.7% in the 3rd quarter. Pinnacle Wealth Planning Services Inc. now owns 3,209 shares of the company’s stock valued at $88,000 after acquiring an additional 550 shares in the last quarter.

Acadia Healthcare Stock Performance

The company has a debt-to-equity ratio of 1.20, a quick ratio of 1.57 and a current ratio of 1.57. The company has a market capitalization of $3.44 billion, a price-to-earnings ratio of -2.97, a P/E/G ratio of 10.39 and a beta of 0.64. The firm has a 50-day simple moving average of $29.27 and a two-hundred day simple moving average of $26.03.

About Acadia Healthcare

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.