Shares of Acadia Healthcare Company Inc (NASDAQ:ACHC) are trading up this morning after the company announced that they have agreed to acquire behavioral healhcare services company, Priory Group, in a stock-and-cash deal.
According to the agreement, 5.363 million shares of Acadia Healthcare Company Inc (NASDAQ:ACHC) will be issued to the sellers and cash of approximately $1.887 billion will be used for the acquisition. Priory is expected to have $865 million in revenue on the books for the year 2015 and there is an expected annualized accretion of between $0.38 and $0.42 per newly diluted share.
The stock closed at $62.46 during the last trading session. It is down 15.75% since May 29, 2015 and is downtrending. It has underperformed the S&P500 by 13.63%.
From a total of 4 analysts covering Acadia Healthcare (NASDAQ:ACHC) stock, 3 rate it a “Buy”, 0 a “Sell”, and 1 a “Hold”. This means that 75% of the ratings are positive. The highest target price is $100 while the lowest target price is $90. The mean of all analyst targets is $93.80 which is 50.18% above today’s ($62.46) stock price. Acadia Healthcare was the topic of 7 analyst reports since August 6, 2015 according to the firm StockzIntelligence Inc. JP Morgan initiated shares on September 16 with a “Neutral” rating. Cantor Fitzgerald maintained ACHC stock in a recent report from August 6 with a “Buy” rating. Finally, Mizuho maintained the stock with a “Buy” rating in a report they issued on an August 6.
The institutional sentiment decreased to 1.26 in Q2 2015. It’s down 0.05, from 1.31 in 2015Q2. The ratio fall, as 30 funds sold all their Acadia Healthcare Company Inc shares they owned while 82 reduced their positions. 45 funds bought stakes while 96 increased their total positions. Institutions now own 71.67 million shares which is 18.14% more than the previous share count of 60.67 million in 2015Q2.
Raveneur Investment Group Lp holds 5.91% of its total portfolio in Acadia Healthcare Company Inc, equating to 263,683 shares. Rock Springs Capital Management Lp owns 812,000 shares representing 4.37% of their total US portfolio. Moreover, Magee Thomson Investment Partners Llc has 3.73% of their total portfolio invested in the company, equating to 182,500 shares. The Massachusetts-based Bain Capital Investors Llc has a total of 3.26% of their portfolio invested in the stock. Pembroke Management Ltd, a Quebec – Canada-based fund reported 561,045 shares owned.
Since March 6, 2015, the stock had 0 buys, and 15 sales for a total of $843.86 million in net activity. Dodd Fred Thomas Jr sold 10,576 shares worth $795,127. Howard Christopher L sold 36,141 shares worth $2.91 million. Shear Bruce A sold 28,555 shares worth $1.37 million. Goldberg Randall P sold 2,131 shares worth $129,955. The insider Polson Jack E sold 20,230 shares worth $1.63 million.
Acadia Healthcare Company, Inc. is a well-known provider of behavioral healthcare services. The company has a market cap of $4.48 billion. The Firm develops and operates inpatient psychiatric facilities, residential treatment centers, group homes, substance abuse facilities and facilities providing outpatient behavioral healthcare services to serve the behavioral health and recovery needs of communities. It has 41.45 P/E ratio. It operates in two divisions: U.S.