Acadia Healthcare ( (ACHC) ) is experiencing volatility. Read on for a possible explanation for the stock’s unusual movement.
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Acadia Healthcare shares are under pressure as investors react to worries about a projected $25 million to $30 million EBITDA hit from new Medicaid reimbursement rules in New York and a sharp rise in professional liability reserves. Sentiment has worsened further after a major institutional investor recently exited its position, adding to the selling.
The stock’s slide also follows a fresh analyst downgrade that has weighed on confidence in the company’s outlook. In response, the consensus price target has been cut to about $21.15, signaling that Wall Street now sees additional downside risk from where the shares are currently trading.
More about Acadia Healthcare
YTD Price Performance: 63.35%
Average Trading Volume: 3,717,758
Technical Sentiment Signal: Sell
Current Market Cap: $2.14B
For further insights into ACHC stock on TipRanks’ Stock Analysis page.
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