Acacia Research has cleared the asymmetry gate with an improving earnings trend, but quality sits well below the exit threshold, momentum has failed its gate, and a small-cap sizing cap keeps the position at avoid.
Thesis pillars
- Quality Below Floor Exit Signal→Stable
- Momentum Gate Failed→Stable
- Earnings Beat Streak After Inline Start→Stable
- +2 more pillars — see the Why tab for full reasoning
Acacia Research Corporation (ACTG) Stock Analysis
Catalyst-Driven edge
Industrials · Business Equipment & Supplies
Sell if holding. Engine safety override at $4.46: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 5.5/10 and A.R:R 2.5:1 is above the 1.5:1 BUY gate. Specifically: Below-average business quality; Negative price momentum.
Acacia Research Corporation is a diversified value-oriented acquirer and operator of businesses across the industrial, energy and technology sectors, controlled by activist investor Starboard Value LP. Its segments include a patent licensing and enforcement business with over... Read more
Sell if holding. Engine safety override at $4.46: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 5.5/10 and A.R:R 2.5:1 is above the 1.5:1 BUY gate. Specifically: Below-average business quality; Negative price momentum. Chart setup: No clear chart pattern; technical signals are mixed. Score 5.5/10, moderate confidence.
Passes 7/8 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity 28d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum. Suitability: aggressive.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHGeographicAnadarko Basin10-K Item 1: 'Currently, our Energy Operations Business is concentrated in the Anadarko basin, making it vulnerable to risks associated with operating in a limited number of geographic areas.'
- HIGHcounterpartyStarboard Value LP10-K Item 1A: 'The success of our Company and the integration of our operating businesses is dependent on our relationship with Starboard.'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
3 floor-breakers·1 ceiling hit
Unprofitable operations — net margin -8.5%. Quality floor flags this regardless of sector context.static
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $4.46: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 5.5/10 and A.R:R 2.5:1 is above the 1.5:1 BUY gate. Specifically: Below-average business quality; Negative price momentum. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $4.25. Score 5.5/10, moderate confidence.
Take-profit target: $5.10 (+14.3% upside). Prior stop was $4.25. Stop-loss: $4.25.
Concentration risk — Geographic: Anadarko Basin; Concentration risk — Counterparty: Starboard Value LP; Quality below floor (1.7 < 4.0).
Acacia Research Corporation trades at a P/E of N/A (forward -8.5). TrendMatrix value score: 9.0/10. Verdict: Sell.
7 analysts cover ACTG with a consensus score of 4.1/5. Average price target: $6.
What does Acacia Research Corporation do?Acacia Research Corporation is a diversified value-oriented acquirer and operator of businesses across the industrial,...
Acacia Research Corporation is a diversified value-oriented acquirer and operator of businesses across the industrial, energy and technology sectors, controlled by activist investor Starboard Value LP. Its segments include a patent licensing and enforcement business with over 1,600 license agreements and roughly $1.9 billion in cumulative gross licensing revenue, a 73.5%-owned energy business, Benchmark Energy, concentrated in the Anadarko Basin, and an industrial manufacturing business built around its Printronix acquisition.