Acorda shares have also retreated since mid-May due to lower analyst profit estimates. Whereas analysts were before expecting EPS of $0.73 for 2016 and $0.96 for 2017, they now expect EPS of $0.44 and $0.75 per share for the two years, respectively. The lower EPS estimates are mainly due to higher-than-anticipated R&D expense guidance for the full year.
Despite the lower EPS estimates, many hedge funds are long Acorda they like Acorda’s promising pipeline, which could pay off substantially in future years. If Acorda successfully defends its Ampyra patents, there is also substantial upside. Aegis has a $52 price target.
At the end of June, 21 funds tracked by Insider Monkey were long Acorda Therapeutics Inc (NASDAQ:ACOR), compared to 26 funds a quarter earlier. Phill Gross and Robert Atchinson‘s Adage Capital Management cut its stake by 14% quarter-over-quarter to 1,175,000 shares at the end of June, while James E. Flynn‘s Deerfield Management kept its stake unchanged at just over 1.0 million shares.