JonesTrading Issues Positive Forecast for Geo Group (NYSE:GEO) Stock Price

Key Points

• JonesTrading raised its GEO price target from $40.00 to $42.75 and maintained a Buy rating, implying about 70% upside from the prior close.
• Analyst sentiment is broadly positive: GEO has an average Buy rating and a consensus price target of $41.38.
• GEO’s quarterly earnings were $0.39 per share, beating the $0.35 estimate, while revenue rose 11.5% year over year to $761.1 million but fell short of forecasts.

Geo Group (NYSE:GEO - Get Free Report) had its price target hoisted by stock analysts at JonesTrading from $40.00 to $42.75 in a report released on Thursday, Benzinga reports. The firm presently has a "buy" rating on the real estate investment trust's stock. JonesTrading's price target suggests a potential upside of 69.99% from the company's previous close.

A number of other brokerages have also recently commented on GEO. UBS Group reiterated a "buy" rating on shares of Geo Group in a report on Tuesday, October 6th. Wall Street Zen downgraded Geo Group from a "buy" rating to a "hold" rating in a research report on Saturday, July 25th. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Geo Group in a research note on Friday, September 4th. Zacks Research upgraded Geo Group from a "hold" rating to a "strong-buy" rating in a research report on Monday, July 20th. Finally, Noble Financial reissued an "outperform" rating on shares of Geo Group in a research note on Monday, August 10th. One research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of "Buy" and a consensus target price of $41.38.

Geo Group Stock Down 8.6%

Shares of NYSE GEO opened at $25.15 on Thursday. Geo Group has a 12-month low of $12.51 and a 12-month high of $33.17. The company has a market capitalization of $3.33 billion, a PE ratio of 11.86, a price-to-earnings-growth ratio of 1.48 and a beta of 0.78. The company has a debt-to-equity ratio of 1.00, a current ratio of 1.65 and a quick ratio of 1.65. The firm's 50-day moving average is $30.12 and its two-hundred day moving average is $24.44.

Geo Group (NYSE:GEO - Get Free Report) last released its quarterly earnings results on Thursday, November 5th. The real estate investment trust reported $0.39 EPS for the quarter, beating the consensus estimate of $0.35 by $0.04. Geo Group had a net margin of 10.31% and a return on equity of 10.42%. The business had revenue of $761.06 million for the quarter, compared to analyst estimates of $770.87 million. During the same period in the prior year, the business earned $0.25 earnings per share. The company's quarterly revenue was up 11.5% on a year-over-year basis. Equities analysts anticipate that Geo Group will post 1.33 EPS for the current fiscal year.

Insider Activity at Geo Group

In other Geo Group news, insider Ronald A. Brack sold 7,000 shares of the business's stock in a transaction on Friday, August 21st. The stock was sold at an average price of $32.00, for a total value of $224,000.00. Following the completion of the transaction, the insider directly owned 71,614 shares in the company, valued at approximately $2,291,648. The trade was a 8.90% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, VP Matthew Albence sold 11,797 shares of the business's stock in a transaction on Friday, September 11th. The shares were sold at an average price of $31.45, for a total value of $371,015.65. Following the completion of the transaction, the vice president owned 87,602 shares of the company's stock, valued at $2,755,082.90. This trade represents a 11.87% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 28,797 shares of company stock valued at $911,916 over the last ninety days. 4.98% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Geo Group

A number of hedge funds and other institutional investors have recently made changes to their positions in GEO. Maryland State Retirement & Pension System increased its stake in Geo Group by 49.4% in the third quarter. Maryland State Retirement & Pension System now owns 28,664 shares of the real estate investment trust's stock valued at $873,000 after purchasing an additional 9,483 shares during the last quarter. Illinois Municipal Retirement Fund lifted its position in Geo Group by 16.4% during the third quarter. Illinois Municipal Retirement Fund now owns 67,758 shares of the real estate investment trust's stock worth $2,065,000 after buying an additional 9,564 shares during the period. O Brien Greene & Co. Inc acquired a new stake in Geo Group in the 3rd quarter worth about $427,000. Parallel Advisors LLC boosted its stake in Geo Group by 165.5% in the 3rd quarter. Parallel Advisors LLC now owns 1,017 shares of the real estate investment trust's stock worth $31,000 after buying an additional 634 shares during the last quarter. Finally, CenterBook Partners LP boosted its stake in Geo Group by 181.2% in the 3rd quarter. CenterBook Partners LP now owns 104,432 shares of the real estate investment trust's stock worth $3,182,000 after buying an additional 67,298 shares during the last quarter. Hedge funds and other institutional investors own 76.10% of the company's stock.

More Geo Group News

Here are the key news stories impacting Geo Group this week:

• Positive Sentiment: GEO reported Q3 adjusted earnings of $0.39 per share, above the $0.35 consensus and up from $0.25 a year earlier. Revenue rose 11.5% year over year. Zacks Q3 earnings report
• Positive Sentiment: Management forecast Q4 revenue of $777 million–$827 million and adjusted EBITDA of $149 million–$154 million, citing expanding ICE activations. That outlook points to continued demand supporting results. Q4 outlook and ICE activations
• Neutral Sentiment: Q3 revenue of about $761.1 million missed the roughly $770.9 million analyst estimate. The earnings beat and year-over-year growth are favorable, but the revenue shortfall may temper the reaction. Q3 revenue estimate comparison
• Negative Sentiment: For-profit prison operators face political and contract-renewal uncertainty after Democrats’ midterm gains, which could weigh on expectations for future ICE-related business. This is a longer-term risk rather than a change to the reported quarter. Political risk for prison stocks

Geo Group Company Profile

The GEO Group, Inc NYSE: GEO is a provider of correctional, detention and community-based services. The company develops and operates secure facilities for government agencies, offering services that can include facility management, housing, transportation, food services, medical care, education and rehabilitation programs.

GEO also provides reentry and community-based services designed to support individuals transitioning from incarceration. Through its electronic monitoring and supervision offerings, the company assists government and law-enforcement agencies with alternatives to secure detention, including GPS monitoring, case management and other post-release support services.

Founded in 1984 as Wackenhut Corrections Corporation, the company adopted the name The GEO Group in 2003.

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