Geo Group Inc (The) (NYSE:GEO) Receives Average Rating of "Buy" from Analysts

Key Points

• Analysts maintain a consensus “Buy” rating on GEO, with four buy ratings, one strong buy and one hold. The average 12-month price target is $40, above the stock’s reported $30.93 opening price.
• GEO exceeded quarterly expectations, reporting $0.37 in EPS versus the $0.29 consensus and $732.07 million in revenue, up 15.1% year over year.
• The stock has risen substantially from its 52-week low of $12.51, reaching as high as $33.15, while two company insiders recently sold shares; institutional investors own 76.1% of outstanding stock.

Geo Group Inc (The) (NYSE:GEO - Get Free Report) has received a consensus rating of "Buy" from the six analysts that are covering the stock, MarketBeat reports. One research analyst has rated the stock with a hold rating, four have issued a buy rating and one has assigned a strong buy rating to the company. The average 1 year price objective among analysts that have covered the stock in the last year is $40.00.

Several research analysts recently commented on GEO shares. Weiss Ratings raised shares of Geo Group from a "hold (c)" rating to a "hold (c+)" rating in a research note on Tuesday, June 9th. JonesTrading boosted their price objective on shares of Geo Group from $33.00 to $40.00 and gave the company a "buy" rating in a research report on Thursday, August 6th. Zacks Research upgraded shares of Geo Group from a "hold" rating to a "strong-buy" rating in a research note on Monday, July 20th. Wall Street Zen lowered shares of Geo Group from a "buy" rating to a "hold" rating in a research report on Saturday, July 25th. Finally, UBS Group reaffirmed an "outperform" rating on shares of Geo Group in a research note on Monday, August 10th.

Geo Group Price Performance

GEO opened at $30.93 on Friday. The business has a fifty day moving average of $30.79 and a 200 day moving average of $23.78. Geo Group has a 52-week low of $12.51 and a 52-week high of $33.15. The company has a quick ratio of 1.65, a current ratio of 1.65 and a debt-to-equity ratio of 1.00. The stock has a market cap of $4.07 billion, a P/E ratio of 14.59, a PEG ratio of 1.67 and a beta of 0.78.

Geo Group (NYSE:GEO - Get Free Report) last released its earnings results on Thursday, August 6th. The real estate investment trust reported $0.37 earnings per share for the quarter, topping analysts' consensus estimates of $0.29 by $0.08. Geo Group had a return on equity of 10.42% and a net margin of 10.31%.The business had revenue of $732.07 million for the quarter, compared to analyst estimates of $721.43 million. During the same quarter last year, the firm posted $0.22 earnings per share. The business's revenue was up 15.1% compared to the same quarter last year. As a group, sell-side analysts anticipate that Geo Group will post 1.31 EPS for the current year.

Insider Buying and Selling at Geo Group

In other Geo Group news, VP Matthew Albence sold 10,000 shares of Geo Group stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $31.69, for a total transaction of $316,900.00. Following the completion of the sale, the vice president directly owned 99,399 shares of the company's stock, valued at $3,149,954.31. The trade was a 9.14% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Ronald A. Brack sold 7,000 shares of the company'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 sale, the insider owned 71,614 shares of the company's stock, valued at $2,291,648. This represents a 8.90% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 4.98% of the company's stock.

Institutional Trading of Geo Group

Hedge funds have recently added to or reduced their stakes in the business. Geneos Wealth Management Inc. increased its position in Geo Group by 245.1% during the 2nd quarter. Geneos Wealth Management Inc. now owns 1,101 shares of the real estate investment trust's stock valued at $26,000 after purchasing an additional 782 shares during the period. Bessemer Group Inc. lifted its position in shares of Geo Group by 111.9% in the 1st quarter. Bessemer Group Inc. now owns 1,723 shares of the real estate investment trust's stock worth $29,000 after purchasing an additional 910 shares during the period. IFP Advisors Inc purchased a new stake in shares of Geo Group in the 4th quarter worth approximately $30,000. Global Retirement Partners LLC bought a new position in shares of Geo Group during the second quarter valued at approximately $34,000. Finally, NewEdge Advisors LLC boosted its stake in shares of Geo Group by 81.9% during the first quarter. NewEdge Advisors LLC now owns 1,864 shares of the real estate investment trust's stock valued at $54,000 after purchasing an additional 839 shares in the last quarter. 76.10% of the stock is owned by hedge funds and other institutional investors.

Geo Group Company Profile

The GEO Group NYSE: GEO is a leading provider of correctional, detention and community reentry services to government agencies around the world. As a real estate investment trust, the company specializes in the design, financing, development and operation of secure facilities for adult and juvenile offenders, immigration detainees and individuals requiring mental health treatment or substance abuse programming. GEO's integrated service model also encompasses electronic monitoring, rehabilitative programming and post-release supervision aimed at reducing recidivism and enhancing public safety.

GEO's portfolio spans a range of facility types, including medium- and maximum-security correctional institutions, residential reentry centers, mental health treatment units and immigration detention centers.

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