Healthy Upside Potential: ACADIA Pharmaceuticals Inc. (ACAD)

ACADIA Pharmaceuticals Inc. (NASDAQ: ACAD) stock fell -0.47% on Tuesday to $19.00 against a previous-day closing price of $19.09. With 0.92 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.22 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $19.53 whereas the lowest price it dropped to was $18.88. The 52-week range on ACAD shows that it touched its highest point at $28.06 and its lowest point at $12.24 during that stretch. It currently has a 1-year price target of $18.53. Beta for the stock currently stands at 0.60.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of ACAD was up-trending over the past week, with a rise of 5.26%, but this was up by 24.10% over a month. Three-month performance surged to 19.65% while six-month performance rose 33.52%. The stock lost -11.59% in the past year, while it has gained 19.35% so far this year. A look at the trailing 12-month EPS for ACAD yields -1.34 with Next year EPS estimates of -0.78. For the next quarter, that number is -0.24. This implies an EPS growth rate of 41.60% for this year and 40.90% for next year. EPS is expected to grow by 25.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 14.90%.

Float and Shares Shorts:

At present, 161.85 million ACAD shares are outstanding with a float of 161.70 million shares on hand for trading. On Oct 13, 2022, short shares totaled 9.52 million, which was 5.88% higher than short shares on Sep 14, 2022. In addition to Mr. Stephen R. Davis J.D. as the firm’s CEO & Director, Dr. Srdjan R. Stankovic M.D., M.S.P.H. serves as its Pres.

Institutional Ownership:

Through their ownership of 94.48% of ACAD’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 59.07% of ACAD, in contrast to 33.59% held by mutual funds. Shares owned by individuals account for 32.40%. As the largest shareholder in ACAD with 26.01% of the stake, Baker Bros. Advisors LP holds 42,109,470 shares worth 42,109,470. A second-largest stockholder of ACAD, The Vanguard Group, Inc., holds 12,611,481 shares, controlling over 7.79% of the firm’s shares. Fidelity Management & Research Co is the third largest shareholder in ACAD, holding 11,571,024 shares or 7.15% stake. With a 3.37% stake in ACAD, the SPDR S&P Biotech ETF is the largest stakeholder. A total of 5,462,609 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.30% of ACAD stock, is the second-largest Mutual Fund holder. It holds 3,719,591 shares valued at 59.22 million. Fidelity Growth Company Fund holds 2.00% of the stake in ACAD, owning 3,232,289 shares worth 51.46 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ACAD since 21 analysts follow the stock currently. There are 8 analysts who recommend BUY ratings, while 2 suggest SELL ratings. Of the remaining analysts, 11 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With ACAD analysts setting a high price target of $25.00 and a low target of $10.00, the average target price over the next 12 months is $18.53. Based on these targets, ACAD could surge 31.58% to reach the target high and fall by -47.37% to reach the target low. Reaching the average price target will result in a decline of -2.47% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. ACAD will report FY 2022 earnings on 02/27/2024. Analysts have provided yearly estimates in a range of -$1.13 being high and -$1.38 being low. For ACAD, this leads to a yearly average estimate of -$1.31. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. ACADIA Pharmaceuticals Inc. surprised analysts by $0.02 when it reported -$0.17 EPS against a consensus estimate of -$0.19. The surprise factor in the prior quarter was $0.04. Based on analyst estimates, the high estimate for the next quarter is -$0.15 and the low estimate is -$0.37. The average estimate for the next quarter is thus -$0.25.

Summary of Insider Activity:

Insiders traded ACAD stock several times over the past three months with 4 Buys and 4 Sells. In these transactions, 18,697 shares were bought while 6,872 shares were sold. The number of buy transactions has increased to 19 while that of sell transactions has risen to 17 over the past year. The total number of shares bought during that period was 116,518 while 29,516 shares were sold.

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