AAC Holdings, Inc. (NYSE:AAC) Placing Shorts on Notice

AAC Holdings, Inc. (NYSE:AAC)

AAC Holdings, Inc. (NYSE:AAC) posted some good numbers and the market sent AAC shares higher. AAC closed Monday at $7.59 and closed Tuesday up over 20% at $9.17 on heavy volumes. AAC Holdings reported a yearly loss of $589,000, or $0.03/share. Revenue was reported as $279.8 million. These figures were largely in line with analyst estimates. AAC Holdings also provided guidance for 2017 – the company expects full-year revenue in the range of $295 million to $305 million.

Brentwood, TN-based AAC Holdings, Inc. provides inpatient substance abuse treatment services at its American locations. It also offers therapy services including motivational interviewing, cognitive behavioral therapy, rational emotive behavior therapy, dialectical behavioral therapy, solution-focused therapy, eye movement desensitization and reprocessing, and systematic family intervention services. As of December 31, 2015, the company operated nine residential substance abuse treatment facilities and nine outpatient substance abuse treatment facilities.

In 2016, AAC Holdings, Inc. (NYSE:AAC) grew from 897 to 1,140 residential beds and added 150 sober-living beds. This allowed the company to increase their admissions by over 50%. This was offset by $16 million in start-up and legal expenses which contributed to the yearly loss. Informed sources say that AACHoldings, Inc. (NYSE:AAC) will increase their business over 50% over the next three to five years.

AAC Holdings, Inc. (NYSE:AAC) has had impressive growth in sales as well as earnings. In 2011 sales were $28.3 million and that number grew to $212.3 million in 2015. Shareholders enjoyed a EPS of $0.04 in 2011 and that number steadily grew. In 2015 AAC had an EPS of $0.49.

Investors, and especially traders, should pay close attention to the number of shares held short in AAC and consider that figure with average volumes taken into account.

Ticker Symbol AAC
Last Price a/o 4:01 AM EST  $                      9.17
Average Volume                    158,000
Market Cap (mlns)  $                  222.01
Sales (mlns) $265.70
Shares Outstanding (mlns) 24.21
Share Float (mlns) 11.57
Shortable Yes
Optionable Yes
Inside Ownership 5.50%
Short Float 25.40%
Short Interest Ratio 18.6
Quarterly Return -4.18%
YTD Return 26.60%
Year Return -55.05%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.