Cantor Fitzgerald Thinks Acadia Healthcare’s Stock is Going to Recover

By Jason Carr

Cantor Fitzgerald analyst Joseph France reiterated a Buy rating on Acadia Healthcare (NASDAQ: ACHC) today and set a price target of $60. The company’s shares opened today at $34.60, close to its 52-week low of $34.40.

According to TipRanks.com, France is a 3-star analyst with an average return of 0.6% and a 38.2% success rate. France covers the Healthcare sector, focusing on stocks such as WellCare Health Plans, Envision Healthcare, and Molina Healthcare.

Currently, the analyst consensus on Acadia Healthcare is Strong Buy and the average price target is $62.33, representing an 80.1% upside.

In a report issued on October 19, UBS also reiterated a Buy rating on the stock with a $55 price target.

Based on Acadia Healthcare’s latest earnings report from March 31, the company posted quarterly revenue of $627.2M and quarterly net profit of $25.69M. In comparison, last year the company earned revenue of $488.7M and had a net profit of $29.55M.

Based on the recent corporate insider activity of 75 insiders, corporate insider sentiment is negative on the stock. Most recently, in September 2016, Reeve Waud, a Director at ACHC sold 84,208 shares for a total of $4,354,476.

Acadia Healthcare Co., Inc. acquires and develops behavioral healthcare facilities. The company’s principal business is to develop and operate inpatient psychiatric facilities, residential treatment centers, group homes, substance abuse facilities and facilities providing outpatient behavioral health services to better serve the behavioral health and recovery needs of communities throughout the United States. The company was founded in December 2005 and is headquartered in Franklin, TN.