Acadia Healthcare (NASDAQ:ACHC) Cut to “Sell” at Zacks Investment Research

Zacks Investment Research cut shares of Acadia Healthcare (NASDAQ:ACHC) from a hold rating to a sell rating in a research note issued to investors on Wednesday, Zacks.com reports. They currently have $31.00 price target on the stock.

According to Zacks, “Acadia Healthcare’s earnings of 61 cents per share beat the Zacks Consensus Estimate by 3.39% but were down 13% year over year. Earnings reflected rise in revenues, which was more than offset by a higher increase in expenses. Its shares have outperformed its industry, year to date. The company’s top line has been improving on the back of organic and inorganic growth initiatives. It has been actively emphasizing on acquisitions for expedited growth. Moreover, it is well poised to fund new bed development, given its impressive balance sheet, which has been generating increasing cash from operations over the years. It is in the process of adding approximately 700 new beds to existing and new facilities in 2019, which in turn will aid the top line. However, rising expenses, high labor cost, soft U.K business are concerns.”

Other analysts have also issued research reports about the company. Mizuho set a $30.00 price objective on Acadia Healthcare and gave the stock a hold rating in a research report on Friday, May 31st. BMO Capital Markets upped their price objective on Acadia Healthcare from $33.00 to $36.00 and gave the stock a market perform rating in a research report on Wednesday, May 1st. BidaskClub lowered Acadia Healthcare from a sell rating to a strong sell rating in a research report on Tuesday. ValuEngine raised Acadia Healthcare from a strong sell rating to a sell rating in a research report on Wednesday, April 24th. Finally, Deutsche Bank set a $32.00 price objective on Acadia Healthcare and gave the stock a hold rating in a research report on Thursday, May 2nd. Three research analysts have rated the stock with a sell rating, seven have given a hold rating and three have issued a buy rating to the stock. Acadia Healthcare has an average rating of Hold and a consensus target price of $37.00.

NASDAQ ACHC traded down $0.50 on Wednesday, reaching $28.77. The stock had a trading volume of 455,717 shares, compared to its average volume of 745,835. The company has a market capitalization of $2.60 billion, a price-to-earnings ratio of 14.55, a price-to-earnings-growth ratio of 1.30 and a beta of 0.68. The company has a quick ratio of 1.09, a current ratio of 1.09 and a debt-to-equity ratio of 1.53. Acadia Healthcare has a 12-month low of $24.27 and a 12-month high of $45.35. The company’s fifty day moving average price is $32.71.

Acadia Healthcare (NASDAQ:ACHC) last announced its earnings results on Tuesday, July 30th. The company reported $0.61 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.59 by $0.02. The company had revenue of $789.00 million for the quarter, compared to analyst estimates of $795.31 million. Acadia Healthcare had a positive return on equity of 7.20% and a negative net margin of 6.80%. The firm’s quarterly revenue was up 3.0% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.70 earnings per share. On average, sell-side analysts expect that Acadia Healthcare will post 2.14 earnings per share for the current year.

Institutional investors have recently bought and sold shares of the company. Clearbridge Investments LLC acquired a new position in shares of Acadia Healthcare during the first quarter worth $12,709,000. Dimensional Fund Advisors LP grew its stake in shares of Acadia Healthcare by 3.3% during the fourth quarter. Dimensional Fund Advisors LP now owns 5,591,881 shares of the company’s stock worth $143,767,000 after purchasing an additional 176,791 shares in the last quarter. TCW Group Inc. grew its stake in shares of Acadia Healthcare by 17.9% during the first quarter. TCW Group Inc. now owns 65,319 shares of the company’s stock worth $1,914,000 after purchasing an additional 9,917 shares in the last quarter. Dynamic Technology Lab Private Ltd acquired a new position in shares of Acadia Healthcare during the first quarter worth $513,000. Finally, Neuberger Berman Group LLC grew its stake in shares of Acadia Healthcare by 89.3% during the first quarter. Neuberger Berman Group LLC now owns 1,658,751 shares of the company’s stock worth $48,620,000 after purchasing an additional 782,480 shares in the last quarter.

About Acadia Healthcare

Acadia Healthcare Company, Inc develops and operates inpatient psychiatric facilities, residential treatment centers, group homes, substance abuse facilities, and outpatient behavioral healthcare facilities to serve the behavioral health and recovery needs of communities in the United States, the United Kingdom, and Puerto Rico.

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