Acadia Healthcare Company, Inc.

Acadia Healthcare Company, Inc. (NASDAQ: ACHC) is a healthcare company that develops and operates inpatient psychiatric facilities, residential treatment centers, group homes, substance abuse facilities, and facilities that provide outpatient behavioral healthcare services to communities across the United States. ASHC operated 229 behavioral healthcare facilities with ~10,100 beds in 40 states and Puerto Rico as of June 30, 2021.

Key Highlights

• The company reported a 13.26% rise in revenues to USD 1.13 billion during 6MFY21 (ended June 30, 2021) compared to USD 1.00 billion during 6MFY20.
• ACHC reported a decline in net income to USD 54.23 million during 6MFY21 vs. USD 74.52 million during 6MFY20.
• As of June 30, 2021, the company's cash and cash equivalents were USD 185.55 million, and total debt amounted to USD 1.49 billion, indicating a highly leveraged balance sheet.
• ACHC and Lutheran Health Network of Indiana, LLC held a groundbreaking ceremony for Maple Heights Behavioral Health, a new 120-bed inpatient behavioral health facility in Fort Wayne, Indiana, on August 5, 2021. The facility is scheduled to open in H2FY22.
• The company has a lawsuit pending on behalf of certain ACHC shareholders in the United States District Court for the Middle District of Tennessee over alleged violations of Securities Laws. On May 31, 2019, the defendants filed a motion to dismiss the complaint, which the Court denied on January 20, 2021.
• Stock is currently trading around its 50-day SMA levels and well above its crucial long-term 200-day SMA levels.
• Stock is currently leaning towards the higher-band of the 52-week range of USD 27.07 to USD 68.00.

Technical Price Chart (as of August 05, 2021). Analysis by Kalkine

Conclusion: ACHC's share price surged 101.36% in the past twelve months. Considering this significant uptick in the stock price, we feel the current share price adequately reflects the robust business fundamentals and choose to remain on the sidelines. Hence, we recommend an "Expensive" rating on the stock at the closing price of USD 62.24, down 0.42% as of August 05, 2021.

*The reference data in this report has been partly sourced from REFINITIV.

Genius Brands International, Inc.

Genius Brands International, Inc. (NASDAQ: GNUS) is a content and brand management company that creates and licenses multimedia content for toddlers to tweens worldwide.

Key Highlights

• The company reported a three-fold increase in total revenue to USD 1.06 million in Q1FY21 (ended March 31, 2021) compared to USD 0.335 million in Q1FY20.
• Net loss for Q1FY21 expanded to USD 76.26 million from USD 5.84 million in Q1FY20.
• On August 02, 2021, GNUS announced its animated series Rainbow Rangers witnessed a significant increase in its viewership across multiple media worldwide. Similarly, on July 13, 2021, it announced that it crossed 40 million views of its Stan Lee’s Superhero Kindergarten adventure series.
• On July 06, 2021, GNUS announced the appointment of Kerry Phelan as Executive VP and General Manager of Global Franchise Management to steer brand development in the retail marketplace globally.
• Stock is currently trading below its crucial long-term as well as short-term support levels of 50-day and 200-day SMA levels, a bearish indicator.
• Stock is currently leaning towards the lower band of the 52-week range of USD 0.95 to USD 3.12.
• GNUS’ share price has increased 47.22% in the past nine months.

Technical Price Chart (as of August 05, 2021). Analysis by Kalkine

Conclusion: The company’s performance further deteriorated in Q1FY21 compared to the previous comparable period. Given the lackluster fundamentals and lack of visibility into the topline as well as bottom-line growth, we recommend an “Avoid” rating on the stock at the closing price of USD 1.59 on August 05, 2021.

*The reference data in this report has been partly sourced from REFINITIV.