Acacia Research Corporation
$4.64
-1.9%Acacia Research Corporation, together with its subsidiaries, invests in intellectual property and related absolute return assets; and engages in the licensing and enforcement of patented technologies. The company operates through two segments, Intellectual Property Operations and Industrial Operations. The company owns or controls the rights to various patent portfolios, which include U.S. patents and foreign counterparts covering technologies used in a range of industries. It has executed approximately 1,600 license agreements, and approximately 200 patent portfolio licensing and enforcement programs. It also designs manufactures printers and parts, and consumable products through dealers and distributors for various industrial printing applications. In addition, the company offers supply-chain printing solutions for manufacturing, transportation and logistics, retail distribution, food and beverage distribution, and pharmaceutical distribution industries; and line matrix printers for mission critical applications within labeling and inventory management, build sheets, invoicing, manifests and bills of lading, and reporting industries. Acacia Research Corporation was incorporated in 1993 and is based in New York, New York.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is mid-range (P/E 20.2).
Valuation inputs: P/E 20.2, earnings yield +5.0%, momentum -1.9%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE +4.0%, ROIC +0.7%).
Profitability stack: net margin +7.6%, ROE +4.0%, ROIC +0.7%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +24.2%, momentum -1.9%, net margin +7.6%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Acacia Research Corporation Market vs Earnings Trajectory
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Acacia Research Corporation Fair Value Envelope
Acacia Research Corporation Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Minimal operating profit suggests high operating costs or pricing challenges. Scalability is concerning.
Net Profit Margin
Moderate profitability with room for improvement. Monitor interest expenses and tax efficiency.
Effective Tax Rate
Moderate tax rate typical for most corporations. Represents standard tax burden on profits.
Profitability Insight
Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.
Acacia Research Corporation Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.
CapEx Intensity
Moderate capital requirements typical of many stable businesses. Healthy balance between reinvestment and cash generation.
FCF Growth Trend
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.
Cash Flow Quality Insight
Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.
Acacia Research Corporation Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.
Debt-to-Equity Ratio
Conservative capital structure. The company relies primarily on equity financing, indicating low financial risk.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Balanced asset mix between current and non-current assets, typical of many stable businesses.
Financial Health Insight
Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.
Acacia Research Corporation Street Expectations Map
No Target Data
No analyst price targets available for actg.
Acacia Research Corporation Insider Positioning
During the last 12 months, insiders have purchased $125K and sold $196K worth of ACTG shares, resulting in $71K of net selling activity.
3 Months
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3-6 Months
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6-9 Months
15.4K
50.00K
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+50K
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9-12 Months
21.7K
75.15K
51.1K
195.93K
-121K
-$121K
Top Buyers
Molinelli Gavin
Director
$60K
Sundar Ajay
Director
$40K
Zambito Michael Sikoryak
Officer: Chief Financial Officer
$25K
Top Sellers
Kohlberg Isaac T.
Director
$61K
Soncini Jason W.
Officer: General Counsel
$44K
Mcnulty Martin D. Jr.
Director, Officer: Chief Executive Officer
$40K
Rasamny Robert
Officer: Chief Administrative Officer
$25K
Hoover Kirsten
Officer: Interim Cfo
$25K
Insider Activity Analysis
Net Insider Sentiment
Slightly bearish with $71K net selling. Selling modestly exceeds buying, which could be routine diversification rather than concern.
Buy/Sell Ratio
Moderately negative ratio. Selling is roughly double the buying, which may be routine or signal caution.
Insider Participation
5 insider sellers vs. 3 buyers. More insiders selling than buying suggests cautious or negative sentiment.
actg Dividend History
Learning Layer
Related Guides
Build conviction on ACTG by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.