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New York City-based Engine Capital Management initiated a stake in Acadia Healthcare during the third quarter, acquiring nearly 2.6 million shares worth $64 million.
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The change represents 7.6% of reportable U.S. equity assets under management.
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Acadia Healthcare is now the fund’s fourth-largest holding out of 27 reported positions.
On November 14, New York City-based Engine Capital Management disclosed a new position in Acadia Healthcare (NASDAQ:ACHC), acquiring 2.6 million shares valued at $64 million.
According to a Securities and Exchange Commission (SEC) filing dated November 14, Engine Capital Management initiated a new position in Acadia Healthcare, acquiring nearly 2.6 million shares. The stake was valued at $64 million at the end of the third quarter. This transaction brought the fund’s total reported U.S. equity positions to 27.
Engine Capital’s new position in ACHC represents 7.6% of its reportable assets under management as of September 30.
Top holdings after the filing:
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NYSE: AVTR: $246.1 million (29.2% of AUM)
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NYSE: NATL: $94.7 million (11.2% of AUM)
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NASDAQ: LNW: $80.9 million (9.6% of AUM)
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NASDAQ: ACHC: $64.0 million (7.6% of AUM)
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NASDAQ: OFIX: $62.3 million (7.4% of AUM)
As of Friday, shares of Acadia Healthcare were priced at $15.47, down 63% over the past year and far underperforming the S&P 500, which is up 13% in the same period.
|
Metric |
Value |
|---|---|
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Revenue (TTM) |
$3.3 billion |
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Net income (TTM) |
$107.4 million |
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Market capitalization |
$1.4 billion |
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Price (as of market close Friday) |
$15.47 |
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Acadia Healthcare operates hundreds of behavioral healthcare facilities across the United States and Puerto Rico.
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The company focuses on inpatient psychiatric hospitals, specialty treatment facilities, residential treatment centers, and outpatient clinics.
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It serves a diverse patient base seeking mental health and addiction treatment services.
Acadia Healthcare is a leading provider of behavioral healthcare services, leveraging its broad network to address a wide range of mental health and addiction needs. Its scale and specialized care offerings position it as a key player in the behavioral health sector.
A sharp move into Acadia Healthcare matters because it shows a fund leaning into a sector facing short-term turbulence but long-term demand tailwinds. Behavioral health remains one of the few healthcare categories with structurally rising need, and Acadia’s recent results hint at stabilization even as near-term profitability is under pressure. For long-term investors, this kind of contrarian build-up can signal that current valuation weakness may not reflect the company’s full earnings power once volumes recover and expansion projects mature.
Engine Capital’s new $64 million position comes as Acadia reported 4.4% year-over-year revenue growth to $851.6 million and continued momentum in same-facility admissions, up 3.3%. But the company also lowered full-year revenue, EBITDA, and EPS guidance amid payor scrutiny, Medicaid softness, and higher liability costs. Adjusted EBITDA fell to $173 million from $194 million a year earlier.
Still, management is cutting 2026 capex by at least $300 million and pushing toward positive free cash flow—moves that could materially improve returns once bed additions start contributing. So what might be worth taking away? Demand is durable, margins are fixable, and the stock’s 63% drop over 12 months may have already priced in much of the pain.
