CoreCivic (NYSE:CXW) Issues Earnings Results

CoreCivic (NYSE:CXW) posted its earnings results on Wednesday. The real estate investment trust reported $0.49 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $15.14 by ($14.65), FiscalAI reports. The firm had revenue of $744.09 million during the quarter, compared to the consensus estimate of $697.55 million. CoreCivic had a net margin of 5.15% and a return on equity of 9.22%. The business’s revenue was up 28.2% on a year-over-year basis. During the same quarter last year, the firm posted $0.48 EPS.

CoreCivic Trading Down 7.1%

Shares of CoreCivic stock traded down $2.16 on Thursday, hitting $28.36. 4,044,039 shares of the company’s stock traded hands, compared to its average volume of 1,405,919. The firm’s 50-day moving average price is $32.54 and its two-hundred day moving average price is $25.90. The company has a debt-to-equity ratio of 0.86, a current ratio of 1.32 and a quick ratio of 1.32. The stock has a market capitalization of $2.80 billion, a PE ratio of 22.69 and a beta of 0.63. CoreCivic has a one year low of $15.73 and a one year high of $36.55.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on the company. TD Cowen restated a “hold” rating on shares of CoreCivic in a research report on Friday, October 23rd. Wall Street Zen cut CoreCivic from a “buy” rating to a “hold” rating in a report on Saturday, October 24th. Weiss Ratings cut CoreCivic from a “buy (b)” rating to a “buy (b-)” rating in a report on Wednesday, October 28th. JonesTrading reiterated a “buy” rating and issued a $42.00 price objective on shares of CoreCivic in a research report on Friday, September 18th. Finally, Benchmark upped their target price on shares of CoreCivic from $41.00 to $45.00 and gave the company a “buy” rating in a research report on Friday, August 7th. Four research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to MarketBeat, CoreCivic presently has a consensus rating of “Moderate Buy” and an average price target of $39.40.

CoreCivic announced that its Board of Directors has approved a stock repurchase plan on Monday, August 10th that allows the company to repurchase $500 million in outstanding shares. This buyback authorization allows the real estate investment trust to purchase up to 15.7% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s board believes its stock is undervalued.

Insiders Place Their Bets

In related news, EVP Lucibeth Mayberry sold 120,000 shares of CoreCivic stock in a transaction on Wednesday, August 12th. The stock was sold at an average price of $33.29, for a total transaction of $3,994,800.00. Following the completion of the sale, the executive vice president directly owned 149,329 shares of the company’s stock, valued at $4,971,162.41. The trade was a 44.56% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO David Garfinkle sold 50,000 shares of the company’s stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $33.76, for a total value of $1,688,000.00. Following the completion of the sale, the chief financial officer owned 343,353 shares of the company’s stock, valued at $11,591,597.28. This represents a 12.71% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 459,287 shares of company stock worth $15,431,193 over the last three months. Insiders own 1.76% of the company’s stock.

About CoreCivic

CoreCivic, Inc is a diversified government solutions company that owns, manages and develops correctional and detention facilities in the United States. The company provides detention and corrections services to federal, state and local government agencies, primarily under contracts that call for the housing and care of individuals in custody.

In addition to secure facilities, CoreCivic operates residential reentry centers and provides community-based services designed to support individuals transitioning from incarceration.