Geo Group Inc (The) (GEO) - What Are Investment Firms Saying About This Stock?

Key Points

• Analysts remain broadly bullish: GEO has an average “Buy” rating from six firms, with a consensus 12-month price target of $40. Northland Securities raised its target from $30 to $40, while Wall Street Zen downgraded the stock to “Hold.”
• Institutional ownership increased significantly: BlackRock and Pentwater Capital each initiated large positions, while Assenagon Asset Management expanded its stake by 141.8%. Hedge funds and other institutions collectively own 76.1% of GEO.
• Recent results exceeded expectations, but insiders sold shares: GEO reported quarterly EPS of $0.37 versus the $0.29 consensus estimate, while revenue rose 15.1% year over year to $732.1 million. Insiders sold 28,797 shares worth approximately $911,916 over the past 90 days.

Geo Group Inc (The) (NYSE:GEO - Get Free Report) has earned an average rating of "Buy" from the six research firms that are presently covering the company, MarketBeat reports. One analyst has rated the stock with a hold rating, four have issued a buy rating and one has issued a strong buy rating on the company. The average 12-month price target among brokerages that have covered the stock in the last year is $40.00.

Several brokerages have recently commented on GEO. Wall Street Zen downgraded Geo Group from a "buy" rating to a "hold" rating in a research note on Saturday, July 25th. Noble Financial reaffirmed an "outperform" rating on shares of Geo Group in a report on Monday, August 10th. Northland Securities upped their price target on shares of Geo Group from $30.00 to $40.00 and gave the company an "outperform" rating in a research report on Friday, June 26th. UBS Group restated a "buy" rating on shares of Geo Group in a report on Tuesday, October 6th. Finally, Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Geo Group in a research note on Friday, September 4th.

Insider Buying and Selling at Geo Group

In other news, insider Ronald A. Brack sold 7,000 shares of the stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $32.00, for a total value of $224,000.00. Following the sale, the insider directly owned 71,614 shares of the company's stock, valued at approximately $2,291,648. This represents a 8.90% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, VP Matthew Albence sold 11,797 shares of the business's stock in a transaction that occurred on Friday, September 11th. The stock was sold at an average price of $31.45, for a total transaction of $371,015.65. Following the completion of the transaction, the vice president directly owned 87,602 shares of the company's stock, valued at approximately $2,755,082.90. This represents a 11.87% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 28,797 shares of company stock worth $911,916. Corporate insiders own 4.98% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in GEO. BlackRock Inc. purchased a new stake in shares of Geo Group in the second quarter valued at $570,744,000. Pentwater Capital Management LP purchased a new stake in shares of Geo Group during the second quarter valued at about $312,698,000. Assenagon Asset Management S.A. grew its holdings in Geo Group by 141.8% in the third quarter. Assenagon Asset Management S.A. now owns 3,895,780 shares of the real estate investment trust's stock worth $118,704,000 after purchasing an additional 2,284,770 shares during the last quarter. Hsbc Holdings PLC acquired a new position in shares of Geo Group during the second quarter valued at about $118,673,000. Finally, Cooper Creek Partners Management LLC increased its position in shares of Geo Group by 14.2% in the 1st quarter. Cooper Creek Partners Management LLC now owns 5,314,006 shares of the real estate investment trust's stock valued at $89,328,000 after acquiring an additional 661,281 shares during the period. 76.10% of the stock is owned by hedge funds and other institutional investors.

Geo Group Price Performance

NYSE GEO opened at $27.28 on Friday. The stock's 50-day moving average price is $30.87 and its two-hundred day moving average price is $27.52. The company has a market cap of $3.59 billion, a PE ratio of 12.87, a PEG ratio of 1.45 and a beta of 0.77. Geo Group has a 1 year low of $12.51 and a 1 year high of $33.17. The company has a current ratio of 1.65, a quick ratio of 1.65 and a debt-to-equity ratio of 1.00.

Geo Group (NYSE:GEO - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The real estate investment trust reported $0.37 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.29 by $0.08. Geo Group had a return on equity of 10.42% and a net margin of 10.31%. The company had revenue of $732.07 million during the quarter, compared to the consensus estimate of $721.43 million. During the same quarter in the prior year, the company posted $0.22 EPS. The firm's revenue was up 15.1% on a year-over-year basis. On average, analysts predict that Geo Group will post 1.33 EPS for the current year.

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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