American Century Companies Inc. has reduced its holdings in ACADIA Pharmaceuticals Inc. (NASDAQ: ACAD) by 4.0% during the second quarter of 2023. According to the latest filing with the Securities and Exchange Commission (SEC), the investment firm sold 65,361 shares, leaving it with a total of 1,567,388 shares valued at approximately $33.8 million.
This decrease in holdings reflects a broader trend among institutional investors, many of whom have adjusted their stakes in ACADIA Pharmaceuticals. For instance, Banque Transatlantique SA entered the market with a new stake valued at around $31,000 in the first quarter. Similarly, Federated Hermes Inc. significantly increased its holdings by 231.5%, now owning 2,317 shares worth $38,000.
Mirae Asset Global Investments Co. Ltd. also grew its holdings by 15.8% during the second quarter, acquiring an additional 884 shares, bringing their total to 6,465 shares valued at $139,000. Overall, institutional investors and hedge funds control approximately 96.71% of ACADIA Pharmaceuticals’ stock.
Analysts Adjust Price Targets for ACADIA Pharmaceuticals
As part of ongoing evaluations, several equities analysts have recently revised their price targets for ACADIA Pharmaceuticals. Notably, JPMorgan Chase & Co. lowered its price objective from $33.00 to $31.00, while maintaining an “overweight” rating. The Goldman Sachs Group increased its target from $15.00 to $17.00, assigning a “sell” rating.
In a more positive outlook, JMP Securities raised its target from $37.00 to $38.00, categorizing the stock as “market outperform.” Mizuho also increased its price objective from $23.00 to $24.00, while Royal Bank of Canada adjusted its target from $34.00 to $32.00, maintaining an “outperform” rating. Currently, there is a consensus rating of “Moderate Buy” for ACADIA Pharmaceuticals, with a consensus price target of $28.83.
Insider Trading Activity and Stock Performance
Recent insider trading activity has raised eyebrows among analysts and investors alike. On November 18, James Kihara, an insider at ACADIA Pharmaceuticals, sold 4,084 shares at an average price of $23.69, totaling $96,749.96. Following this transaction, Kihara holds 25,058 shares valued at about $593,624.02. This sale represented a 14.01% reduction in his ownership.
Similarly, Mark C. Schneyer, Executive Vice President, sold 10,262 shares on the same day, also at an average price of $23.69, amounting to $243,106.78. After this transaction, Schneyer owns 53,338 shares valued at approximately $1.26 million, reflecting a 16.14% decrease in ownership. Over the past 90 days, insiders have sold a total of 49,444 shares valued at about $1.14 million.
As of the most recent trading session, ACADIA Pharmaceuticals opened at $25.00. The company has experienced a 52-week low of $13.40 and a high of $26.65. The firm has a market capitalization of $4.23 billion, a P/E ratio of 18.79, and a beta of 0.80.
ACADIA Pharmaceuticals last reported earnings on November 5, where it posted $0.42 earnings per share (EPS), significantly surpassing the consensus estimate of $0.14. The company achieved a net margin of 21.80% and reported revenue of $278.63 million for the quarter, marking an 11.3% year-over-year increase.
Founded to address unmet medical needs, ACADIA Pharmaceuticals specializes in developing innovative treatments for central nervous system disorders and rare diseases. Its key products include NUPLAZID for Parkinson’s disease psychosis and DAYBUE, a treatment for Rett Syndrome. As the company navigates this pivotal period, investor interest and institutional involvement will likely continue to shape its trajectory in the biopharmaceutical sector.
