CoreCivic (NYSE:CXW) Stock Gets Downgrade from Wall Street Zen

Key Points

• Wall Street Zen downgraded CoreCivic from “buy” to “hold,” although broader analyst sentiment remains a “Moderate Buy,” with four buy ratings and one hold rating and an average price target of $39.40.
• CoreCivic reported quarterly EPS of $0.38, beating estimates of $0.34, while revenue reached $684.92 million, up 27.3% year over year. The company also authorized a $500 million share-repurchase program, covering up to 15.7% of outstanding shares.
• Insiders have sold 459,287 shares worth about $15.4 million over the past 90 days, while institutional investors own 85.13% of the company; the stock opened at $29.97, below its $36.55 52-week high.

CoreCivic (NYSE:CXW - Get Free Report) was downgraded by Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Saturday, Wall Street Zen reports.

Other equities research analysts have also recently issued reports about the stock. Benchmark boosted their price objective 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. JonesTrading reaffirmed a "buy" rating and set a $42.00 price target on shares of CoreCivic in a research note on Friday, September 18th. Northland Securities set a $40.00 price objective on shares of CoreCivic in a report on Friday, June 26th. Noble Financial reaffirmed an "outperform" rating on shares of CoreCivic in a research report on Monday, August 10th. Finally, UBS Group set a $35.00 price objective on CoreCivic in a report on Tuesday, July 7th. Four equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat, CoreCivic has an average rating of "Moderate Buy" and an average target price of $39.40.

CoreCivic Trading Up 2.2%

Shares of NYSE:CXW opened at $29.97 on Friday. The company has a market cap of $2.96 billion, a P/E ratio of 23.97 and a beta of 0.57. CoreCivic has a 52-week low of $15.73 and a 52-week high of $36.55. The stock's 50-day moving average is $32.97 and its 200-day moving average is $28.37. The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.32 and a current ratio of 1.32.

CoreCivic (NYSE:CXW - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The real estate investment trust reported $0.38 EPS for the quarter, topping analysts' consensus estimates of $0.34 by $0.04. CoreCivic had a return on equity of 9.22% and a net margin of 5.15%. The company had revenue of $684.92 million during the quarter, compared to the consensus estimate of $618.63 million. During the same quarter last year, the company earned $0.59 EPS. The company's quarterly revenue was up 27.3% on a year-over-year basis. CoreCivic has set its FY 2026 guidance at 2.610-2.700 EPS. Equities research analysts predict that CoreCivic will post 2.69 earnings per share for the current year.

CoreCivic announced that its Board of Directors has initiated a share repurchase program on Monday, August 10th that permits the company to buy back $500.00 million in shares. This buyback authorization permits the real estate investment trust to repurchase up to 15.7% of its shares through open market purchases. Stock buyback programs are typically an indication that the company's board believes its stock is undervalued.

Insider Activity at CoreCivic

In related news, EVP Daren Swenson sold 20,000 shares of CoreCivic stock in a transaction that occurred on Friday, September 11th. The shares were sold at an average price of $34.85, for a total transaction of $697,000.00. Following the sale, the executive vice president directly owned 142,666 shares in the company, valued at $4,971,910.10. This trade represents a 12.30% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Anthony L. Grande sold 12,564 shares of the company's stock in a transaction that occurred on Wednesday, August 26th. The shares were sold at an average price of $33.85, for a total transaction of $425,291.40. Following the completion of the transaction, the executive vice president owned 144,782 shares of the company's stock, valued at approximately $4,900,870.70. This trade represents a 7.98% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 459,287 shares of company stock worth $15,431,193 in the last 90 days. Corporate insiders own 1.76% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. BlackRock Inc. bought a new position in CoreCivic during the second quarter worth $480,557,000. Assenagon Asset Management S.A. bought a new position in CoreCivic during the third quarter worth $93,789,000. Lee Danner & Bass Inc. grew its stake in shares of CoreCivic by 273.1% in the 1st quarter. Lee Danner & Bass Inc. now owns 2,173,498 shares of the real estate investment trust's stock valued at $41,101,000 after buying an additional 1,590,940 shares during the period. Park West Asset Management LLC acquired a new position in CoreCivic during the 2nd quarter worth approximately $27,310,000. Finally, JB Capital Partners LP acquired a new position in shares of CoreCivic during the second quarter worth approximately $25,677,480. Institutional investors and hedge funds own 85.13% of the company's stock.

CoreCivic Company Profile

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.

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