Acadia Healthcare (ACHC) Agrees to $17M Settlement Amid Legal Scrutiny
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
- Legal Troubles Intensify: Acadia Healthcare faces multiple subpoenas from the DOJ and SEC following a New York Times article alleging patient coercion for profit, leading to increased legal costs that threaten financial stability.
- Financial Strain Evident: The company's adjusted EPS guidance for 2025 has been lowered to between $2.35 and $2.45, down from $2.45 to $2.65, indicating ongoing financial pressures and declining profitability.
- Rising Costs Impact: Total expenses surged 15% year-over-year due to rising wages, benefits, and supply prices, further squeezing margins and suggesting negative growth prospects in the coming quarters.
- Weak Stock Performance: ACHC shares have plummeted 64.53% year-to-date, significantly underperforming major market indices, reflecting pronounced technical weakness and market pessimism regarding future growth prospects.
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Analyst Views on ACHC
Wall Street analysts forecast ACHC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ACHC is 19.55 USD with a low forecast of 13.00 USD and a high forecast of 27.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
6 Buy
4 Hold
1 Sell
Moderate Buy
Current: 13.440
Low
13.00
Averages
19.55
High
27.00
Current: 13.440
Low
13.00
Averages
19.55
High
27.00
About ACHC
Acadia Healthcare Company, Inc. is a provider of behavioral healthcare services across the United States. It provides behavioral healthcare services to its patients in a variety of settings, including inpatient psychiatric hospitals, specialty treatment facilities, residential treatment centers and outpatient clinics. Its acute inpatient psychiatric facilities provide a high level of care in order to stabilize patients that are either a threat to themselves or to others. Its specialty treatment facilities include residential recovery facilities and eating disorder facilities. Its comprehensive treatment centers specialize in providing medication-assisted treatment in an outpatient setting. Its residential treatment centers treat patients with behavioral disorders in a non-hospital setting. The facilities balance therapy activities with social, academic and other activities. It operates a network of 262 behavioral healthcare facilities with over 11,850 beds in 39 states and Puerto Rico.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Acadia Healthcare Appoints Debra K. Osteen as CEO, Stock Surges 21.49%
- Executive Transition: Debra K. Osteen has been appointed as CEO of Acadia effective immediately, succeeding Chris Hunter who stepped down from the Board, indicating a significant leadership change that may influence future strategic directions.
- Financial Guidance Reaffirmed: Acadia reiterated its revenue guidance for 2025 at $3.28 billion to $3.30 billion and adjusted EPS guidance of $1.94 to $2.04, demonstrating the company's confidence in its future performance, which may attract more investor interest.
- Positive Market Reaction: Following the executive transition announcement, Acadia's stock surged 21.49% to $14.20, reflecting market optimism regarding the new leadership and potentially enhancing the company's competitive position.
- Historical Performance Review: For the fiscal year 2024, Acadia reported total revenue of $3.15 billion, indicating stable growth over the past year, and with the new CEO at the helm, further business expansion is anticipated.
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