There is no way ACADIA Pharmaceuticals Inc. (ACAD) can keep these numbers up

ACADIA Pharmaceuticals Inc. (NASDAQ: ACAD) stock fell -1.21% on Monday to $24.42 against a previous-day closing price of $24.72. With 1.91 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.59 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $25.09 whereas the lowest price it dropped to was $24.18. The 52-week range on ACAD shows that it touched its highest point at $33.99 and its lowest point at $13.73 during that stretch. It currently has a 1-year price target of $31.13. Beta for the stock currently stands at 0.59.

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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 down-trending over the past week, with a drop of -9.99%, but this was down by -15.50% over a month. Three-month performance surged to 1.45% while six-month performance rose 23.33%. The stock gained 33.66% in the past year, while it has gained 53.39% so far this year. A look at the trailing 12-month EPS for ACAD yields -0.68 with Next year EPS estimates of 0.60. For the next quarter, that number is -0.44. This implies an EPS growth rate of -27.70% for this year and 233.30% for next year.

Float and Shares Shorts:

At present, 163.46 million ACAD shares are outstanding with a float of 163.00 million shares on hand for trading. On Aug 30, 2023, short shares totaled 10.18 million, which was 6.22% higher than short shares on Jul 30, 2023. In addition to Mr. Stephen R. Davis J.D. as the firm’s Pres, CEO & Director, Mr. Mark C. Schneyer serves as its Exec. VP & CFO.

Institutional Ownership:

Through their ownership of 99.18% of ACAD’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 66.12% of ACAD, in contrast to 32.63% held by mutual funds. Shares owned by individuals account for 31.69%. As the largest shareholder in ACAD with 26.18% of the stake, Baker Bros. Advisors LP holds 42,864,612 shares worth 42,864,612. A second-largest stockholder of ACAD, The Vanguard Group, Inc., holds 13,512,577 shares, controlling over 8.25% of the firm’s shares. RTW Investments LP is the third largest shareholder in ACAD, holding 9,783,249 shares or 5.98% stake. With a 2.31% stake in ACAD, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 3,783,353 shares are owned by the mutual fund manager. The Vanguard Small Cap Index Fund, which owns about 1.94% of ACAD stock, is the second-largest Mutual Fund holder. It holds 3,177,436 shares valued at 85.85 million. SPDR S&P Biotech ETF holds 1.77% of the stake in ACAD, owning 2,904,979 shares worth 78.49 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, ACAD reported revenue of $134.56M and operating income of -$33.65M. The EBITDA in the recently reported quarter was -$33.65M and diluted EPS was -$0.21.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ACAD since 0 analysts follow the stock currently. 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 $42.00 and a low target of $13.00, the average target price over the next 12 months is $31.13. Based on these targets, ACAD could surge 71.99% to reach the target high and fall by -46.76% to reach the target low. Reaching the average price target will result in a growth of 27.48% 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.

Summary of Insider Activity:

Insiders traded ACAD stock several times over the past three months with 1 Buys and 4 Sells. In these transactions, 100,000 shares were bought while 181,602 shares were sold. The number of buy transactions has increased to 32 while that of sell transactions has risen to 30 over the past year. The total number of shares bought during that period was 312,927 while 278,398 shares were sold.

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