Key Stats for ACHC Stock
- Price Change for $ACHC stock: 8%
- Current Share Price: $26.62
- 52-Week High: $60.52
- $ACHC Stock Price Target: $30.93
What Happened?
Acadia Healthcare (ACHC) stock jumped 6% on Thursday after a second activist investor stepped up pressure on the behavioral health company to explore a potential sale.
Khrom Capital Management, which owns roughly 5.5% of Acadia stock, sent a letter to the board urging management to launch a strategic review that could include selling the business.
The letter criticized years of poor stock performance and what Khrom called governance failures. Managing partner Eric Khrom didn’t mince words: “Excuses are no longer acceptable—meaningful action to create shareholder value must begin immediately.”
The firm said it believes “credible and interested” potential buyers exist for the Franklin, Tennessee-based company.
This marks the second activist campaign targeting Acadia in less than two weeks. Engine Capital, which holds about 3% of the company, sent its own letter last month calling for board changes, asset sales, and a halt to expensive facility expansion projects.
Engine Capital criticized what it described as Acadia’s “growth at any cost” approach and argued that the board lacked directors with relevant operating experience.
The timing is particularly challenging for Acadia. CEO Christopher Hunter acknowledged in a recent investor conference that 2025 has been a difficult year, with volumes coming in below expectations due to weaker Medicaid patient admissions. The company also disclosed additional volume softness in the third quarter through an 8-K filing.
See analysts’ growth forecasts and price targets for ACHC stock (It’s free!) >>>
What the Market Is Telling Us About ACHC Stock
The 6% pop in Acadia stock suggests investors welcome the activist pressure as a potential catalyst to unlock value in what both firms describe as a “deeply undervalued” company.
Shares have cratered 36% year-to-date and are trading 56% below their October 2024 peak of $59.32.
Management is already taking action to address performance issues. Acadia recently announced it’s slashing capital spending by at least $300 million in 2026 compared to 2025 levels, pausing several facility projects to focus on demonstrating free cash flow generation.
Acadia also closed five underperforming facilities and said it’s monitoring five more for potential closure.
Hunter defended the company’s long-term positioning during the conference, noting that Acadia has added nearly 1,800 beds between 2024 and 2025 and expects to add another 500 to 700 beds next year.
These beds should ramp up and make a meaningful contribution to revenue and profitability over the next few years.
He also emphasized the company’s investments in technology, quality measurement, and clinical outcomes as differentiators that should help with payer negotiations.
However, the activist investors aren’t buying the story. Khrom and Engine Capital argue that the board and management have squandered opportunities and that the stock’s dismal performance speaks for itself.
The pressure from two sizable shareholders to explore a sale creates real momentum for strategic alternatives, whether that’s an outright sale, asset divestitures, or significant operational overhauls.
The company also faces multiple federal investigations, adding another layer of uncertainty for investors.
The combination of operational headwinds, activist pressure, and regulatory scrutiny creates a complex situation where a strategic transaction might be the most straightforward path forward for shareholders.
Management will provide further updates when it reports third-quarter results, but the activists have made clear they’re not willing to wait much longer for meaningful change.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
