ACADIA Pharmaceuticals (NASDAQ:ACAD) Shares Down 10.3% on Analyst Downgrade

ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) shares were down 10.3% during mid-day trading on Thursday after HC Wainwright lowered their price target on the stock from $37.00 to $33.00. HC Wainwright currently has a buy rating on the stock. ACADIA Pharmaceuticals traded as low as $21.97 and last traded at $22.8140. Approximately 904,792 shares traded hands during mid-day trading, a decline of 45% from the average session volume of 1,656,982 shares. The stock had previously closed at $25.43.

A number of other research analysts have also recently weighed in on the stock. Morgan Stanley lifted their price objective on shares of ACADIA Pharmaceuticals from $27.00 to $28.00 and gave the company an “equal weight” rating in a report on Tuesday, August 25th. Wall Street Zen raised shares of ACADIA Pharmaceuticals from a “hold” rating to a “buy” rating in a research note on Saturday, August 8th. Deutsche Bank Aktiengesellschaft dropped their target price on ACADIA Pharmaceuticals from $38.00 to $31.00 and set a “buy” rating on the stock in a research report on Friday. Citizens Jmp cut their price target on ACADIA Pharmaceuticals from $36.00 to $33.00 and set a “market outperform” rating for the company in a research note on Friday. Finally, Needham & Company LLC reduced their price target on ACADIA Pharmaceuticals from $41.00 to $35.00 and set a “buy” rating for the company in a report on Friday. Fourteen analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $32.75.

Insiders Place Their Bets

In other ACADIA Pharmaceuticals news, EVP Mark Schneyer sold 14,292 shares of the stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $29.22, for a total transaction of $417,612.24. Following the transaction, the executive vice president directly owned 67,828 shares of the company’s stock, valued at $1,981,934.16. This trade represents a 17.40% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Elizabeth Thompson sold 16,558 shares of the stock in a transaction on Thursday, July 30th. The shares were sold at an average price of $26.13, for a total transaction of $432,660.54. Following the transaction, the executive vice president directly owned 18,994 shares in the company, valued at approximately $496,313.22. The trade was a 46.57% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 36,699 shares of company stock valued at $1,019,894 over the last 90 days. 26.20% of the stock is currently owned by company insiders.

Trending Headlines about ACADIA Pharmaceuticals

Here are the key news stories impacting ACADIA Pharmaceuticals this week:

• Positive Sentiment: The once-daily 60 mg dose reduced hallucinations and delusions more than placebo and produced results that were directionally supportive, despite narrowly missing statistical significance on the primary endpoint. ACADIA said the findings are sufficient to justify Phase 3 testing. ACAD Stock Down 13% as Phase II Alzheimer’s Study Misses Primary Goal
• Positive Sentiment: Analysts maintained bullish ratings, though they reduced price targets to reflect the clinical risk. HC Wainwright and Citizens lowered targets to $33 while retaining “buy” and “market outperform” ratings, respectively. Needham also reaffirmed its “buy” rating with a $41 target.
• Neutral Sentiment: ACADIA’s reported safety profile for remlifanserin was viewed as clean, but the company must demonstrate a larger and more reliable treatment effect in Phase 3. Acadia chugs on with Alzheimer’s psychosis programme despite Phase II miss
• Neutral Sentiment: Unusually high call-option activity indicates increased trading interest and potentially bullish positioning, but it does not establish a fundamental change in the company’s outlook.
• Neutral Sentiment: Construction was completed on ACADIA’s Princeton office, an operational update with limited near-term financial significance. Construction finished on Acadia Pharmaceuticals’ Princeton office
• Negative Sentiment: Remlifanserin missed the RADIANT Phase 2 study’s primary endpoint because the 60 mg benefit did not reach statistical significance at six weeks. The miss undermines confidence in the drug’s efficacy and increases the risk that Phase 3 testing could fail. Acadia’s Alzheimer’s psychosis drug misses main goal
• Negative Sentiment: Analysts cut success expectations and price targets following the data. Citi reportedly reduced its estimated probability of Phase 3 success to 20%, while other commentary cited a modest effect size and concerns about replicability and clinical utility.

Institutional Investors Weigh In On ACADIA Pharmaceuticals

Several institutional investors have recently bought and sold shares of the company. Envestnet Portfolio Solutions Inc. purchased a new stake in ACADIA Pharmaceuticals during the 2nd quarter worth approximately $597,000. Integrated Wealth Concepts LLC purchased a new position in shares of ACADIA Pharmaceuticals in the second quarter valued at approximately $50,000. Baird Financial Group Inc. purchased a new position in shares of ACADIA Pharmaceuticals in the second quarter valued at approximately $232,000. Nykredit A S acquired a new stake in shares of ACADIA Pharmaceuticals in the second quarter worth approximately $38,000. Finally, Amundi boosted its stake in shares of ACADIA Pharmaceuticals by 27.7% in the second quarter. Amundi now owns 34,153 shares of the biopharmaceutical company’s stock worth $864,000 after acquiring an additional 7,400 shares during the last quarter. 96.71% of the stock is currently owned by institutional investors and hedge funds.

ACADIA Pharmaceuticals Stock Down 6.8%

The stock has a market capitalization of $3.56 billion, a PE ratio of 9.32 and a beta of 0.86. The company has a 50-day moving average of $27.50 and a 200 day moving average of $24.18.

ACADIA Pharmaceuticals (NASDAQ:ACAD) last posted its quarterly earnings data on Tuesday, August 4th. The biopharmaceutical company reported $0.18 EPS for the quarter, beating the consensus estimate of $0.07 by $0.11. ACADIA Pharmaceuticals had a return on equity of 9.03% and a net margin of 33.42%.The firm had revenue of $308.00 million during the quarter, compared to the consensus estimate of $296.55 million. During the same period in the prior year, the company earned $0.16 EPS. The firm’s revenue was up 16.4% compared to the same quarter last year. As a group, equities analysts predict that ACADIA Pharmaceuticals Inc. will post 0.64 EPS for the current fiscal year.

ACADIA Pharmaceuticals Company Profile

ACADIA Pharmaceuticals Inc is a biopharmaceutical company focused on developing and commercializing medicines for neurological and psychiatric disorders. The company is headquartered in San Diego, California, and conducts research and commercial activities primarily in the United States.

ACADIA’s marketed products include NUPLAZID (pimavanserin), an atypical antipsychotic approved for the treatment of hallucinations and delusions associated with Parkinson’s disease psychosis. The company also markets DAYBUE (trofinetide), a therapy for Rett syndrome, a rare neurodevelopmental disorder.

Founded in 1993, ACADIA continues to advance a pipeline of therapies for central nervous system conditions, including additional neurological and psychiatric disorders.