Bank of America Downgrades Acadia Healthcare Stock Rating Significantly

Acadia Healthcare’s stock rating has been notably downgraded by Bank of America, moving from a “neutral” to an “underperform” rating. This change was made public in a report released on November 5, 2023, with the bank setting a new price target of $13.00, down from a previous target of $21.50. This adjustment indicates a potential downside of 11.20% based on the company’s prior closing price.

Several other financial institutions have also revised their projections for Acadia Healthcare. KeyCorp has lowered its price objective from $30.00 to $25.00, while maintaining an “overweight” rating. Mizuho has adjusted its target from $32.00 to $22.00 with a “neutral” rating. Additionally, UBS Group has reduced its price objective from $28.00 to $24.00 but continues to endorse a “buy” rating. Deutsche Bank has also decreased its target price from $33.00 to $20.00, maintaining a “buy” rating.

Despite these downgrades, Cowen has reaffirmed its “buy” rating for Acadia Healthcare. Overall, eight analysts have given the stock a “buy” rating, six have issued a “hold” rating, and two have assigned a “sell” rating. According to MarketBeat, the average rating for the stock is “hold,” with a consensus target price of $23.17.

Recent Earnings and Financial Performance

Acadia Healthcare recently released its earnings for the most recent quarter on November 5, 2023. The company reported earnings per share (EPS) of $0.72, surpassing analysts’ expectations of $0.71 by $0.01. The company’s net margin was recorded at 3.29%, with a return on equity of 7.66%. Revenue for the quarter reached $851.57 million, slightly below the anticipated $852.43 million. Compared to the same period last year, the revenue increased by 4.4%.

Looking ahead, Acadia Healthcare has provided guidance for the fiscal year 2025, projecting an EPS between $2.350 and $2.450. Analysts estimate the company will achieve an EPS of $3.38 for the current fiscal year.

Investor Activity and Stake Changes

Recent trading activity indicates notable shifts in investor positions regarding Acadia Healthcare. Caxton Associates LLP has acquired a new stake valued at approximately $394,000 in the first quarter. Envestnet Portfolio Solutions Inc. increased its holdings by 256.4% in the second quarter, bringing its total to 26,053 shares, valued at $591,000 after acquiring an additional 18,742 shares.

Oppenheimer Asset Management Inc. raised its position by 85.1% in the second quarter, now owning 28,683 shares valued at $651,000. Janney Montgomery Scott LLC also entered a new position during the second quarter, valued at approximately $479,000. Finally, PNC Financial Services Group Inc. increased its holdings by 10.3% in the first quarter, now owning 6,672 shares worth $202,000.

Acadia Healthcare, headquartered in the United States, specializes in providing behavioral healthcare services, operating various facilities that include acute inpatient psychiatric centers and comprehensive treatment centers. As the market navigates these changes, stakeholders closely monitor the company’s performance and analyst ratings.