ACADIA Pharmaceuticals Inc. (ACAD) Shares Fall Big on Plans for $300 Million Public Offering


ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) today announced that they intend on offering and selling $300,000,000 of common stock shares as part of a public offering. Although no confirmation of definite plans were announced, shares of the stock have fallen big today on the fact that this will dilute shares if it takes place.

ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) has appointed J.P. Morgan Securities and BofA Merrill Lynch as their book-running managers for the potential offering, and the company has plans on granting their underwriters a 30-day option period in order to purchase an additional $45 million in shares of common stock. With a market capital of around $2.95 billion, this represents almost a 10% increase in outstanding shares if it were to be based on yesterday’s closing price.

The stock is down 15.56% or $5.36 following the news, hitting $29.1 per share. About 2.37 million shares traded hands or 151.88% up from the average. ACAD has declined 17.06% since June 2, 2015 and is downtrending. It has underperformed the S&P500 by 12.37%.

From a total of 4 analysts covering ACADIA Pharmaceuticals (NASDAQ:ACAD) 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 $55 while the lowest target price is $48.0. The mean of all analyst targets is $50.90 which is 74.91% above today’s ($29.1) stock price. ACADIA Pharmaceuticals was the topic of 10 analyst reports since August 7, 2015 according to the firm StockzIntelligence Inc. JP Morgan maintained shares on September 4 with a “Buy” rating. Vetr upgraded ACAD stock in a recent report from August 10 to a “Hold” rating. Finally, Needham maintained the stock with a “Buy” rating in a report they issued on an August 7.

The institutional sentiment increased to 1.24 in Q2 2015. It’s up 0.29, from 0.95 in 2015Q2. The ratio increased, as 25 funds sold all their ACADIA Pharmaceuticals Inc. shares they owned while 57 reduced their positions. 23 funds bought stakes while 79 increased their total positions. Institutions now own 107.11 million shares which is 11.05% more than the previous share count of 96.45 million in 2015Q2.

March Altus Capital Management Lp holds 9.51% of its total portfolio in ACADIA Pharmaceuticals Inc., equating to 48,825 shares. Emory University owns 83,010 shares representing 7.11% of their total US portfolio. Moreover, Baker Bros. Advisors Lp has 6.26% of their total portfolio invested in the company, equating to 20.48 million shares. The Florida-based Harvey Capital Management Inc has a total of 5.82% of their portfolio invested in the stock. Venbio Select Advisor Llc, a California-based fund reported 581,900 shares owned.

ACADIA Pharmaceuticals Inc. is a biopharmaceutical company. The company has a market cap of $3.37 billion. The Firm is focused on the development and commercialization of medicines for the treatment of neurological and related central nervous system disorders. It currently has negative earnings. The Company’s drug candidate NUPLAZID is under development for the treatment of Parkinson’s disease psychosis, Alzheimer’s disease psychosis, Schizophrenia and Sleep disturbances.