Reported Earnings • May 07
First quarter 2026 earnings released: US$0.16 loss per share (vs US$0.25 profit in 1Q 2025) First quarter 2026 results: US$0.16 loss per share (down from US$0.25 profit in 1Q 2025). Revenue: US$54.2m (down 56% from 1Q 2025). Net loss: US$15.7m (down 165% from profit in 1Q 2025). Over the last 3 years on average, earnings per share has increased by 34% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Announcement • May 04
Acacia Research Corporation, Annual General Meeting, Jun 23, 2026 Acacia Research Corporation, Annual General Meeting, Jun 23, 2026. Announcement • Apr 23
Acacia Research Corporation to Report Q1, 2026 Results on May 07, 2026 Acacia Research Corporation announced that they will report Q1, 2026 results Pre-Market on May 07, 2026 Reported Earnings • Mar 12
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: US$0.23 (up from US$0.36 loss in FY 2024). Revenue: US$285.2m (up 133% from FY 2024). Net income: US$21.7m (up US$57.7m from FY 2024). Profit margin: 7.6% (up from net loss in FY 2024). Revenue exceeded analyst estimates by 4.4%. Earnings per share (EPS) also surpassed analyst estimates. Over the last 3 years on average, earnings per share has increased by 90% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Announcement • Feb 25
Acacia Research Corporation to Report Q4, 2025 Results on Mar 11, 2026 Acacia Research Corporation announced that they will report Q4, 2025 results Pre-Market on Mar 11, 2026 Announcement • Feb 07
Geoff Ribar Announces Intention of Not to Stand as Member of the Board of Directors, Chairman of the Nominating, Governance and Sustainability Committee of the Board, and a Member of the Audit Committee of the Board of Acacia Research Corporation Acacia Research Corporation announced that on February 2, 2026, Geoff Ribar, a member of the Board of Directors, chairman of the Nominating, Governance and Sustainability Committee of the Board, and a member of the Audit Committee of the Board, notified the Company that he does not intend to stand for reelection to the Board at the Company's 2026 Annual Meeting of Stockholders due to personal reasons, including his time commitments to other boards. Reported Earnings • Nov 06
Third quarter 2025 earnings: EPS and revenues exceed analyst expectations Third quarter 2025 results: US$0.028 loss per share (improved from US$0.14 loss in 3Q 2024). Revenue: US$59.4m (up 155% from 3Q 2024). Net loss: US$2.73m (loss narrowed 81% from 3Q 2024). Revenue exceeded analyst estimates by 56%. Earnings per share (EPS) also surpassed analyst estimates by 80%. Revenue is expected to decline by 39% p.a. on average during the next 2 years, while revenues in the Diversified Financial industry in the US are expected to grow by 6.3%. Over the last 3 years on average, earnings per share has increased by 38% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Announcement • Oct 23
Acacia Research Corporation to Report Q3, 2025 Results on Nov 05, 2025 Acacia Research Corporation announced that they will report Q3, 2025 results Pre-Market on Nov 05, 2025 Reported Earnings • Aug 06
Second quarter 2025 earnings released Second quarter 2025 results: Net income: (up US$8.45m from 2Q 2024). Over the last 3 years on average, earnings per share has fallen by 10% per year whereas the company’s share price has fallen by 13% per year. New Risk • Aug 06
New minor risk - Profitability The company is currently unprofitable and not forecast to become profitable over the next year. Trailing 12-month net loss: US$12m Forecast net loss in 1 year: US$31m This is considered a minor risk. Companies that are not profitable are more likely to be burning through cash and less likely to be well established. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. Without profits, the company is under pressure to grow significantly while potentially having to reduce costs and possibly needing to take on debt or raise capital to remain afloat. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 7.1% per year over the past 5 years. Minor Risks Currently unprofitable and not forecast to become profitable next year (US$31m net loss next year). Significant insider selling over the past 3 months (US$61k sold). Announcement • Jul 23
Acacia Research Corporation to Report Q2, 2025 Results on Aug 06, 2025 Acacia Research Corporation announced that they will report Q2, 2025 results Pre-Market on Aug 06, 2025 Announcement • Jun 24
Acacia Research Corporation Announces Chief Financial Officer Changes, Effective June 24, 2025 Acacia Research Corporation announced the appointment of Michael Zambito as Chief Financial Officer, effective June 24, 2025. Kirsten Hoover, Acacia’s current Interim Chief Financial Officer, will continue to serve as Acacia’s Controller and remains a key member of Acacia’s finance team. Prior to joining Acacia, Mr. Zambito spent the past 30 years at Ernst & Young. Most recently, he spent over 23 years, including the last 17 as a Partner, in Ernst & Young’s EY-Parthenon (formerly Strategy and Transactions) practice. Prior to this, he spent seven years in Ernst & Young’s NY audit practice, as staff through manager. Mr. Zambito received his MBA from Columbia Business School and holds a Bachelor of Science degree in Business Administration with a major in Accounting from the University of Richmond. Recent Insider Transactions • Jun 15
Independent Director recently sold US$61k worth of stock On the 11th of June, Isaac Kohlberg sold around 16k shares on-market at roughly US$3.84 per share. This transaction amounted to 16% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of US$84k more than they bought in the last 12 months. Reported Earnings • May 09
First quarter 2025 earnings: EPS and revenues exceed analyst expectations First quarter 2025 results: EPS: US$0.25 (up from US$0.002 loss in 1Q 2024). Revenue: US$124.4m (up 412% from 1Q 2024). Net income: US$24.3m (up US$24.5m from 1Q 2024). Profit margin: 20% (up from net loss in 1Q 2024). Revenue exceeded analyst estimates by 126%. Earnings per share (EPS) also surpassed analyst estimates. Revenue is forecast to grow 1.6% p.a. on average during the next 2 years, compared to a 5.3% growth forecast for the Diversified Financial industry in the US. Over the last 3 years on average, earnings per share has fallen by 50% per year but the company’s share price has only fallen by 6% per year, which means it has not declined as severely as earnings. Announcement • Apr 24
Acacia Research Corporation to Report Q1, 2025 Results on May 08, 2025 Acacia Research Corporation announced that they will report Q1, 2025 results Pre-Market on May 08, 2025 Announcement • Apr 11
Acacia Research Corporation, Annual General Meeting, May 15, 2025 Acacia Research Corporation, Annual General Meeting, May 15, 2025. Price Target Changed • Mar 14
Price target decreased by 14% to US$6.00 Down from US$7.00, the current price target is provided by 1 analyst. New target price is 68% above last closing price of US$3.58. Stock is down 23% over the past year. The company is forecast to post a net loss per share of US$0.21 next year compared to a net loss per share of US$0.36 last year. Reported Earnings • Mar 13
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: US$0.36 loss per share (down from US$0.73 profit in FY 2023). Revenue: US$122.3m (down 2.2% from FY 2023). Net loss: US$36.1m (down 165% from profit in FY 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 20%. Over the last 3 years on average, earnings per share has fallen by 58% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Announcement • Mar 04
Acacia Research Corporation to Report Q4, 2024 Results on Mar 13, 2025 Acacia Research Corporation announced that they will report Q4, 2024 results at 9:30 AM, US Eastern Standard Time on Mar 13, 2025 Recent Insider Transactions • Nov 27
Independent Director recently sold US$69k worth of stock On the 25th of November, Isaac Kohlberg sold around 15k shares on-market at roughly US$4.57 per share. This transaction amounted to 18% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Despite this recent sale, insiders have collectively bought US$59k more than they sold in the last 12 months. Recent Insider Transactions Derivative • Nov 26
Independent Director notifies of intention to sell stock Isaac Kohlberg intends to sell 15k shares in the next 90 days after lodging an Intent To Sell Form on the 25th of November. If the sale is conducted around the recent share price of US$4.57, it would amount to US$69k. Since June 2024, Isaac has owned 84.27k shares directly. Company insiders have collectively bought US$127k more than they sold, via options and on-market transactions, in the last 12 months. Reported Earnings • Nov 13
Third quarter 2024 earnings released: US$0.14 loss per share (vs US$0.018 loss in 3Q 2023) Third quarter 2024 results: US$0.14 loss per share (further deteriorated from US$0.018 loss in 3Q 2023). Revenue: US$23.3m (up 131% from 3Q 2023). Net loss: US$14.0m (loss widened US$12.3m from 3Q 2023). Revenue is forecast to grow 37% p.a. on average during the next 2 years, compared to a 4.0% growth forecast for the Diversified Financial industry in the US. Over the last 3 years on average, earnings per share has fallen by 45% per year but the company’s share price has only fallen by 9% per year, which means it has not declined as severely as earnings. Announcement • Oct 29
Acacia Research Corporation to Report Q3, 2024 Results on Nov 12, 2024 Acacia Research Corporation announced that they will report Q3, 2024 results Pre-Market on Nov 12, 2024 Announcement • Oct 23
Acacia Research Corporation (NasdaqGS:ACTG) acquired Deflecto, LLC from Edgewater Growth Capital Partners L.P. managed by Edgewater Services, LLC for approximately $100 million. Acacia Research Corporation (NasdaqGS:ACTG) acquired Deflecto, LLC from Edgewater Growth Capital Partners L.P. managed by Edgewater Services, LLC for approximately $100 million on October 18, 2024. The Purchase Price was funded with a combination of borrowings under the Term Loan and cash on hand. On October 18, 2024, in connection with the closing of the Transaction, Acacia Research Corporation borrowed the $48 million under the Term Loan to finance, in part, the Purchase Price for the Transaction. JPMorgan Chase is acting as the lead arranger and administrative agent under the Facility, and the Facility is syndicated among other financial institutions. In the trailing twelve-month period ended August 31, 2024, Deflecto generated revenue of approximately $131 million. Based on current market conditions and trends, Acacia expects Deflecto to generate approximately $128-$136 million in revenue and approximately $17.5-$19.5 million of EBITDA in 2024. Under Acacia’s ownership, Deflecto will continue to be led by Ross Pliska, Chief Executive Officer, and the existing Deflecto management team.
Samantha Crispin of Baker Botts L.L.P. acted as legal advisor for Acacia Research Corporation. Deloitte Financial Advisory Services LLP acted as financial advisor for Acacia Research Corporation. Michael A. Nemeroff, Esq and Joseph T. Bueche, Esq of Vedder Price P.C. acted as legal advisor for Deflecto, LLC and Edgewater Growth Capital Management , L.P. Cowen Inc. acted as financial advisor for Deflecto, LLC.
Acacia Research Corporation (NasdaqGS:ACTG) completed the acquisition of Deflecto, LLC from Edgewater Growth Capital Partners L.P. managed by Edgewater Services, LLC on October 18, 2024 Major Estimate Revision • Oct 01
Consensus EPS estimates fall from profit to US$0.07 loss The consensus outlook for fiscal year 2024 has been updated. Forecast loss of -US$0.07 per share in 2024, versus previous forecasts of US$0.15 per share. Revenue forecast unchanged from US$106.9m at last update. Diversified Financial industry in the US expected to see average net income growth of 17% next year. Consensus price target of US$7.00 unchanged from last update. Share price fell 6.5% to US$4.45 over the past week. Major Estimate Revision • Aug 15
Consensus EPS estimates fall by 55%, revenue upgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast increased from US$100.8m to US$106.9m. EPS estimate fell from US$0.33 to US$0.15 per share. Net income forecast to shrink 63% next year vs 17% growth forecast for Diversified Financial industry in the US . Consensus price target of US$7.00 unchanged from last update. Share price fell 5.1% to US$4.67 over the past week. Reported Earnings • Aug 09
Second quarter 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2024 results: US$0.084 loss per share (improved from US$0.36 loss in 2Q 2023). Revenue: US$25.8m (up 227% from 2Q 2023). Net loss: US$8.45m (loss narrowed 60% from 2Q 2023). Revenue exceeded analyst estimates by 31%. Earnings per share (EPS) missed analyst estimates. Revenue is expected to decline by 7.4% p.a. on average during the next 2 years, while revenues in the Diversified Financial industry in the US are expected to grow by 4.6%. Over the last 3 years on average, earnings per share has fallen by 29% per year but the company’s share price has only fallen by 7% per year, which means it has not declined as severely as earnings. Announcement • Jul 25
Acacia Research Corporation to Report Q2, 2024 Results on Aug 08, 2024 Acacia Research Corporation announced that they will report Q2, 2024 results on Aug 08, 2024 Buy Or Sell Opportunity • Jul 11
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 7.2% to US$5.38. The fair value is estimated to be US$4.44, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 25% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to decline by 20% in a year. Earnings are forecast to decline by 21% in the next year. Buy Or Sell Opportunity • Jun 12
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 34% to US$5.33. The fair value is estimated to be US$4.40, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 25% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to decline by 20% in a year. Earnings are forecast to decline by 21% in the next year. Board Change • Jun 02
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Director Michelle Felman was the last director to join the board, commencing their role in 2024. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Recent Insider Transactions • May 21
Director recently bought US$100k worth of stock On the 17th of May, Martin McNulty bought around 19k shares on-market at roughly US$5.29 per share. This transaction amounted to 37% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Martin has been a buyer over the last 12 months, purchasing a net total of US$250k worth in shares. Buy Or Sell Opportunity • May 14
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 22% to US$5.29. The fair value is estimated to be US$4.40, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 25% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to decline by 20% in a year. Earnings are forecast to decline by 21% in the next year. Reported Earnings • May 10
First quarter 2024 earnings released: US$0.002 loss per share (vs US$0.15 profit in 1Q 2023) First quarter 2024 results: US$0.002 loss per share (down from US$0.15 profit in 1Q 2023). Revenue: US$24.3m (up 64% from 1Q 2023). Net loss: US$186.0k (down 103% from profit in 1Q 2023). Revenue is forecast to stay flat during the next 2 years compared to a 3.6% growth forecast for the Diversified Financial industry in the US. Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Announcement • Apr 27
Acacia Research Corporation to Report Q1, 2024 Results on May 09, 2024 Acacia Research Corporation announced that they will report Q1, 2024 results After-Market on May 09, 2024 Announcement • Apr 21
Acacia Research Corporation, Annual General Meeting, May 21, 2024 Acacia Research Corporation, Annual General Meeting, May 21, 2024, at 11:30 US Eastern Standard Time. Agenda: To elect seven directors to serve on our board of directors until the 2025 annual meeting of stockholders or until their respective successors are duly elected and qualified; to ratify the appointment of grant thornton llp as our independent registered public accounting firm for the fiscal year ending december 31, 2024; and to discuss other matters. Price Target Changed • Mar 17
Price target increased by 17% to US$7.00 Up from US$6.00, the current price target is provided by 1 analyst. New target price is 51% above last closing price of US$4.65. Stock is up 11% over the past year. The company is forecast to post earnings per share of US$0.29 for next year compared to US$0.73 last year. New Risk • Mar 15
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 10% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Earnings are forecast to decline by an average of 10% per year for the foreseeable future. Shareholders have been substantially diluted in the past year (71% increase in shares outstanding). Minor Risk Large one-off items impacting financial results. Reported Earnings • Mar 15
Full year 2023 earnings: EPS and revenues exceed analyst expectations Full year 2023 results: EPS: US$0.89 (up from US$3.13 loss in FY 2022). Revenue: US$125.1m (up 111% from FY 2022). Net income: US$67.1m (up US$200.1m from FY 2022). Profit margin: 54% (up from net loss in FY 2022). Revenue exceeded analyst estimates significantly. Earnings per share (EPS) also surpassed analyst estimates. Revenue is forecast to grow 2.1% p.a. on average during the next 2 years, compared to a 4.1% growth forecast for the Diversified Financial industry in the US. Over the last 3 years on average, earnings per share has fallen by 24% per year but the company’s share price has only fallen by 7% per year, which means it has not declined as severely as earnings. Announcement • Mar 01
Acacia Research Corporation to Report Q4, 2023 Results on Mar 14, 2024 Acacia Research Corporation announced that they will report Q4, 2023 results After-Market on Mar 14, 2024 Announcement • Feb 17
Acacia Research Corporation Announces Board Changes On February 12, 2024, Jonathan Sagal, a member of the Board of Directors of Acacia Research Corporation notified the Company of his intention to resign as a director of the Company, effective February 13, 2024. On February 13, 2024, Ajay Sundar, Managing Director at Starboard Value LP was appointed as a director of the Company to serve until the Company’s 2024 annual meeting of stockholders and until his successor is duly elected and qualified. Mr. Sundar is a Managing Director at Starboard Value, an investment adviser with a focused and fundamental approach to investing primarily in publicly traded U.S. companies. Prior to joining Starboard Value in August 2015, Mr. Sundar was an Investment Banking Analyst in the Consumer & Retail Group at Citigroup in New York. Mr. Sundar received a B.S. in Commerce from the McIntire School of Commerce at the University of Virginia. Announcement • Nov 15
Acacia Research Corporation (NasdaqGS:ACTG) acquired an unknown majority stake in Benchmark Energy II, LLC from McArron Partners, L.P. Acacia Research Corporation (NasdaqGS:ACTG) acquired an unknown majority stake in Benchmark Energy II, LLC from McArron Partners, L.P. on November 13, 2023. McArron Partners will retain minority stake in Benchmark Energy.
Acacia Research Corporation (NasdaqGS:ACTG) completed the acquisition of an unknown majority stake in Benchmark Energy II, LLC from McArron Partners, L.P. on November 13, 2023. Reported Earnings • Nov 15
Third quarter 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2023 results: EPS: US$0.017 (down from US$0.54 in 3Q 2022). Revenue: US$10.1m (down 37% from 3Q 2022). Net income: US$1.64m (down 92% from 3Q 2022). Profit margin: 16% (down from 130% in 3Q 2022). Revenue exceeded analyst estimates by 26%. Earnings per share (EPS) missed analyst estimates by 127%. Revenue is expected to decline by 26% p.a. on average during the next 2 years, while revenues in the Diversified Financial industry in the US are expected to grow by 3.3%. Over the last 3 years on average, earnings per share has fallen by 29% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Announcement • Nov 14
Acacia Research Corporation (NasdaqGS:ACTG) announces an Equity Buyback for 5,800,000 shares, for $20 million. Acacia Research Corporation (NasdaqGS:ACTG) announces a share repurchase program. Under the program, the company will repurchase up to 5,800,000 shares, for $20 million. The repurchase authorization has no time limit. Price Target Changed • Aug 06
Price target decreased by 14% to US$6.00 Down from US$7.00, the current price target is provided by 1 analyst. New target price is 61% above last closing price of US$3.72. Stock is down 26% over the past year. The company is forecast to post a net loss per share of US$0.04 next year compared to a net loss per share of US$3.13 last year. Reported Earnings • Aug 04
Second quarter 2023 earnings released: US$0.32 loss per share (vs US$1.32 loss in 2Q 2022) Second quarter 2023 results: US$0.32 loss per share (improved from US$1.32 loss in 2Q 2022). Revenue: US$7.90m (down 53% from 2Q 2022). Net loss: US$18.8m (loss narrowed 68% from 2Q 2022). Revenue is forecast to grow 12% p.a. on average during the next 2 years, compared to a 5.9% growth forecast for the Diversified Financial industry in the US. Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Announcement • Jul 23
Acacia Research Corporation to Report Q2, 2023 Results on Aug 03, 2023 Acacia Research Corporation announced that they will report Q2, 2023 results After-Market on Aug 03, 2023 New Risk • Jul 21
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 118% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. This is currently the only risk that has been identified for the company. Recent Insider Transactions • May 27
Interim CEO recently bought US$150k worth of stock On the 24th of May, Martin McNulty bought around 40k shares on-market at roughly US$3.75 per share. This transaction amounted to 67% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. This was Martin's only on-market trade for the last 12 months. Announcement • May 23
Acacia Research Corporation Approves the Appointment of Geoff Ribar as Director Acacia Research Corporation at its Annual Meeting of Stockholders held on May 16, 2023, approved the appointment of Geoff Ribar as Director. Reported Earnings • May 12
First quarter 2023 earnings: EPS and revenues miss analyst expectations First quarter 2023 results: EPS: US$0.20 (up from US$1.61 loss in 1Q 2022). Revenue: US$14.8m (up 9.6% from 1Q 2022). Net income: US$9.45m (up US$84.6m from 1Q 2022). Profit margin: 64% (up from net loss in 1Q 2022). Revenue missed analyst estimates by 7.5%. Earnings per share (EPS) exceeded analyst estimates. Revenue is forecast to grow 3.1% p.a. on average during the next 2 years, compared to a 8.2% growth forecast for the Diversified Financial industry in the US. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has increased by 21% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Mar 17
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: US$3.13 loss per share (down from US$2.44 profit in FY 2021). Revenue: US$59.2m (down 33% from FY 2021). Net loss: US$133.0m (down 212% from profit in FY 2021). Revenue missed analyst estimates by 4.6%. Earnings per share (EPS) also missed analyst estimates by 31%. Over the last 3 years on average, earnings per share has increased by 25% per year whereas the company’s share price has increased by 22% per year. Recent Insider Transactions Derivative • Mar 05
Independent Director exercised options to buy US$108k worth of stock. On the 1st of March, Jonathan Sagal exercised options to buy 24k shares at a strike price of around US$5.25, costing a total of US$128k. This transaction amounted to 20% of their direct individual holding at the time of the trade. Since March 2022, Jonathan's direct individual holding has increased from 97.34k shares to 123.54k. This was the only transaction from an insider over the last 12 months. Announcement • Jan 10
Acacia Research Corporation Announces CFO Changes Acacia Research Corporation announced that Richard Rosenstein, the Company's Chief Financial Officer, will step down from his position, effective at the close of business on January 27, 2023, to pursue another professional opportunity. The Company intends for Mr. Rosenstein to serve as a consultant through April 30, 2023. Effective as of January 28, 2023, Kirsten Hoover, who currently serves as Acacia's Corporate Controller and previously held other senior finance roles at the Company, will assume the role of interim Chief Financial Officer. The Board has commenced a search for a new Chief Financial Officer. The process will be supported by a leading, independent executive search firm. Mr. Rosenstein's departure is not the result of any dispute or disagreement with the Company, including with respect to matters related to the Company's accounting practices, general policies or financial reporting. Kirsten Hoover is an experienced corporate finance professional with strong institutional knowledge of Acacia and its go-forward strategy. She rejoined Acacia as its Corporate Controller in October 2021 after serving as the Senior Manager of Financial Reporting at Veritone Inc. from December 2019 through October 2021. Previously, Ms. Hoover held various accounting and finance roles at Acacia from 2002 through 2019, including as Corporate Controller from 2004 through 2019. She began her career in the Audit and Assurance practice within Deloitte, and holds a B.A. in Economics from the University of California, Santa Barbara. Buying Opportunity • Jan 03
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 4.3%. The fair value is estimated to be US$5.06, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 58% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to decline by 42% in a year. Earnings is forecast to decline by 165% in the next year. Reported Earnings • Nov 16
Third quarter 2022 earnings: EPS and revenues exceed analyst expectations Third quarter 2022 results: EPS: US$0.54 (down from US$1.49 in 3Q 2021). Revenue: US$15.9m (up US$14.3m from 3Q 2021). Net income: US$20.6m (down 72% from 3Q 2021). Revenue exceeded analyst estimates by 18%. Earnings per share (EPS) also surpassed analyst estimates. Revenue is expected to decline by 38% p.a. on average during the next 2 years, while revenues in the Diversified Financial industry in the US are expected to grow by 11%. Over the last 3 years on average, earnings per share has increased by 84% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 11
Third quarter 2022 earnings: EPS and revenues exceed analyst expectations Third quarter 2022 results: EPS: US$0.74 (down from US$1.49 in 3Q 2021). Revenue: US$15.9m (up US$14.3m from 3Q 2021). Net income: US$28.1m (down 62% from 3Q 2021). Revenue exceeded analyst estimates by 18%. Earnings per share (EPS) also surpassed analyst estimates. Revenue is expected to decline by 38% p.a. on average during the next 2 years, while revenues in the Diversified Financial industry in the US are expected to grow by 11%. Over the last 3 years on average, earnings per share has increased by 81% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Aug 18
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast increased from US$54.0m to US$57.2m. Forecast EPS reduced from -US$1.76 to -US$3.20 per share. Diversified Financial industry in the US expected to see average net income decline 11% next year. Consensus price target of US$8.00 unchanged from last update. Share price was steady at US$4.76 over the past week. Reported Earnings • Aug 12
Second quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2022 results: US$1.44 loss per share (down from US$0.63 profit in 2Q 2021). Revenue: US$16.7m (down 3.9% from 2Q 2021). Net loss: US$63.4m (down 308% from profit in 2Q 2021). Revenue exceeded analyst estimates by 24%. Earnings per share (EPS) missed analyst estimates by 2,780%. Over the next year, revenue is expected to shrink by 39% compared to a 2.5% growth forecast for the industry in the US. Over the last 3 years on average, earnings per share has increased by 105% per year but the company’s share price has only increased by 19% per year, which means it is significantly lagging earnings growth. Seeking Alpha • Jul 20
Acacia Research: Multiple Acquisitions On The Way The stock´s valuation is the strong calling card here.
The willingness to close on complex transactions definitely increases Acacia´s reach.
Over the long term, more volatility in equity markets would benefit Acacia.
Technical Analysis
If we look at a long-term chart of Acacia Research Corporation (ACTG), we can see that the 50-month moving average has now turned up meaningfully and the MACD indicator is fighting to drive on into positive territory. Furthermore, the bullish divergence in the RSI momentum indicator is a bullish indicator that indeed trend followers may start to get long this stock once a change in trend has been confirmed here in earnest. For this to happen, we need to see price break out above the multi-year downcycle trendline on strong volume. That resistance point at present comes in just above the $7 level. We believe shares will at least test this level over the near term in Acacia Research due to what we are seeing on the near-term chart.
Technical Chart Of Acacia Research (StockCharts)
As we can see from the near-term chart below, shares now have significant downside support, having bottomed at the $4.24 mark in late June which then led to the taking out of the stock´s 200-day moving average of $4.76 (At Present). Suffice it to say, the longer shares can remain above their 200-day moving average, the higher the probability that at least a new short-term bullish trend has begun. Furthermore, as we can see from the chart below, there was a significant increase in buying volume in late June which corresponded with a significant drop in short-interest (Current short-interest now comes in under 3%). Suffice it to say, all of these trends are bullish from a timing standpoint, which leads us to believe that shares should continue to rally from their present level ($4.82 approx.). The stock´s fundamentals and very keen valuation explain why Acacia may avail of renewed investor interest here.
Acacia In Bullish Mode (StockCharts)
Proven Track Record
In fact, with the VIX trading up around the 25 level, management remains poised to deploy elevated amounts of capital in order to take advantage of present lower stock prices in general. Therefore, when we combine the fact that stocks are currently on sale with Acacia´s $1 billion war chest, it becomes clearly evident that Acacia is in a good place given the firm´s ever-growing number of participating investors and executives that have the ability to close complex deals. The track record is there also as we see with the ongoing capital gains continuing to come off the life sciences portfolio. We also saw recently how Mycovia´s recent drug approval will lead to strong cash flow for Acacia over time. Investors will be hoping similar type gains can come off the capital which is coming off these deals.
Growth In Sales, Capex, & Working Capital
Acacia Research is expected to report -$1.76 in earnings per share this fiscal year on sales of $54 million. The following year, analysts who follow this stock expect Acacia to do -$0.08 in earnings per share which would be practically a return to positive profitability if indeed the projection was met for fiscal 2023. Since revenues can jump around significantly in Acacia, investors will be clued into how profitability including cash-flow generation can be enhanced from the opportunities it takes on. Despite the fact that Printronix drove sales forward in the company´s first-quarter results this year, other less followed metrics such as working capital and Capex spend also reported strong 12-month growth rates. Capex spend was up by 33% and Capex spend grew by almost 17% over the same period of 12 months prior.
Bullish Balance Sheet Trends
These trends are being facilitated by what is happening on the balance sheet. Cash & Short-term investments of $572 million at the end of March 2022 were up close to $100 million over the same period of 12 months prior. Short-term borrowings in senior secured notes issued to Starboard Value at the end of Q1 came in at $168.7 million, which was down over $12 million sequentially. Management also repaid an additional $50 million in the beginning stages of the second quarter, so we should see a meaningful drop in debt in the upcoming second-quarter numbers.
Shares Trading Under Book Value Reported Earnings • May 13
First quarter 2022 earnings: EPS misses analyst expectations First quarter 2022 results: US$1.61 loss per share (up from US$3.34 loss in 1Q 2021). Revenue: US$13.5m (up 133% from 1Q 2021). Net loss: US$75.1m (loss narrowed 54% from 1Q 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 16,000%. Over the next year, revenue is expected to shrink by 42% compared to a 7.8% growth forecast for the industry in the US. Over the last 3 years on average, earnings per share has increased by 99% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Price Target Changed • Apr 27
Price target increased to US$8.00 Up from US$7.00, the current price target is provided by 1 analyst. New target price is 84% above last closing price of US$4.35. Stock is down 29% over the past year. The company is forecast to post a net loss per share of US$0.05 compared to earnings per share of US$2.43 last year. Major Estimate Revision • Apr 07
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast increased from US$35.0m to US$54.0m. EPS expected loss of US$0.05 per share, down from profit of US$0.10 per share previously. Professional Services industry in the US expected to see average net income growth of 6.3% next year. Consensus price target of US$8.00 unchanged from last update. Share price was steady at US$4.55 over the past week. Reported Earnings • Apr 01
Full year 2021 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2021 results: EPS: US$3.06 (up from US$1.85 in FY 2020). Revenue: US$88.0m (up 196% from FY 2020). Net income: US$149.2m (up 65% from FY 2020). Revenue exceeded analyst estimates by 196%. Earnings per share (EPS) also surpassed analyst estimates. Over the next year, revenue is expected to shrink by 60% compared to a 9.9% growth forecast for the industry in the US. Over the last 3 years on average, earnings per share has increased by 91% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Mar 31
Investor sentiment improved over the past week After last week's 15% share price gain to US$4.51, the stock trades at a trailing P/E ratio of 34.7x. Average forward P/E is 20x in the Professional Services industry in the US. Total returns to shareholders of 40% over the past three years. Reported Earnings • Nov 17
Third quarter 2021 earnings released: EPS US$1.83 (vs US$0.63 in 3Q 2020) Third quarter 2021 results: Revenue: US$1.58m (down 92% from 3Q 2020). Net income: US$89.6m (up 194% from 3Q 2020). Over the last 3 years on average, earnings per share has increased by 80% per year but the company’s share price has only increased by 25% per year, which means it is significantly lagging earnings growth. Executive Departure • Sep 13
President, Chief Investment Officer & Director Alfred Tobia has left the company On the 9th of September, Alfred Tobia's tenure as President, Chief Investment Officer & Director ended after 2.0 years in the role. As of June 2021, Alfred still personally held 138.46k shares (US$936k worth at the time). A total of 2 executives have left over the last 12 months. The current median tenure of the management team is 3.38 years. Reported Earnings • Aug 18
Second quarter 2021 earnings released: EPS US$0.31 (vs US$0.087 in 2Q 2020) The company reported a solid second quarter result with improved earnings and revenues, although profit margins were weaker. Second quarter 2021 results: Revenue: US$17.4m (up US$15.3m from 2Q 2020). Net income: US$15.1m (up 260% from 2Q 2020). Profit margin: 87% (down from 198% in 2Q 2020). Over the last 3 years on average, earnings per share has increased by 61% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Board Change • Jul 31
High number of new directors Independent Director Jon Sagal was the last director to join the board, commencing their role in 2019. Recent Insider Transactions • Jun 10
Chief Financial Officer recently sold US$53k worth of stock On the 7th of June, Richard Rosenstein sold around 10k shares on-market at roughly US$5.51 per share. This was the largest sale by an insider in the last 3 months. This was Richard's only on-market trade for the last 12 months. 