AAC (AAC) Cut to Strong Sell at Zacks Investment Research

AAC (NYSE:AAC) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a report released on Friday, Zacks.com reports.

According to Zacks, “AAC Holdings, Inc. is a provider of inpatient substance abuse treatment services for individuals with drug and alcohol addiction. It provides detoxification, residential treatment, partial hospitalization, and intensive outpatient care services. AAC Holdings, Inc. is headquartered in Brentwood, Tennessee. “

A number of other brokerages have also weighed in on AAC. Raymond James decreased their target price on AAC from $7.00 to $5.00 and set an “outperform” rating for the company in a research report on Thursday. ValuEngine raised AAC from a “hold” rating to a “buy” rating in a research report on Wednesday, April 3rd.

Shares of AAC stock traded down $0.18 on Friday, reaching $1.56. The company had a trading volume of 379,503 shares, compared to its average volume of 244,373. The stock has a market cap of $38.50 million, a price-to-earnings ratio of 2.60 and a beta of 2.39. The company has a debt-to-equity ratio of 2.58, a quick ratio of 2.17 and a current ratio of 2.17. AAC has a 1 year low of $1.33 and a 1 year high of $12.64.

AAC (NYSE:AAC) last announced its earnings results on Tuesday, April 16th. The company reported ($0.85) EPS for the quarter, missing the Zacks’ consensus estimate of ($0.20) by ($0.65). The company had revenue of $57.45 million during the quarter. AAC had a positive return on equity of 4.21% and a negative net margin of 10.20%. Sell-side analysts predict that AAC will post -0.04 earnings per share for the current fiscal year.

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Geode Capital Management LLC raised its holdings in AAC by 4.6% in the 4th quarter. Geode Capital Management LLC now owns 110,394 shares of the company’s stock worth $154,000 after purchasing an additional 4,864 shares during the period. Bank of America Corp DE raised its stake in AAC by 1.3% during the fourth quarter. Bank of America Corp DE now owns 338,166 shares of the company’s stock worth $473,000 after acquiring an additional 4,345 shares during the period. Two Sigma Investments LP acquired a new stake in AAC during the fourth quarter worth about $49,000. Royce & Associates LP raised its stake in AAC by 57.5% during the fourth quarter. Royce & Associates LP now owns 1,542,166 shares of the company’s stock worth $2,159,000 after acquiring an additional 563,308 shares during the period. Finally, Bank of New York Mellon Corp raised its stake in AAC by 47.0% during the fourth quarter. Bank of New York Mellon Corp now owns 175,579 shares of the company’s stock worth $246,000 after acquiring an additional 56,108 shares during the period. 48.98% of the stock is owned by hedge funds and other institutional investors.

About AAC

AAC Holdings, Inc provides inpatient and outpatient substance use treatment services for individuals with drug addiction, alcohol addiction, and co-occurring mental/behavioral health issues in the United States. Its therapy services include motivational interviewing, cognitive behavioral therapy, rational emotive behavior therapy, dialectical behavioral therapy, solution-focused therapy, eye movement desensitization and reprocessing, and systematic family intervention.

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