What Happened?

Shares of behavioral health company Acadia Healthcare (NASDAQ:ACHC) fell 24.1% in the afternoon session after the company reported weak fourth quarter results: Its revenue guidance for next quarter missed significantly and its EPS fell short of Wall Street's estimates. Overall, this was a softer quarter.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Acadia Healthcare? Access our full analysis report here, it’s free.

What The Market Is Telling Us

Acadia Healthcare’s shares are somewhat volatile and have had 11 moves greater than 5% over the last year. But moves this big are rare even for Acadia Healthcare and indicate this news significantly impacted the market’s perception of the business.

Acadia Healthcare is down 25% since the beginning of the year, and at $30.60 per share, it is trading 64.3% below its 52-week high of $85.62 from March 2024. Investors who bought $1,000 worth of Acadia Healthcare’s shares 5 years ago would now be looking at an investment worth $1,034.

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