CoreCivic (NYSE:CXW) Downgraded to "Hold" Rating by Wall Street Zen

Key Points

• CoreCivic was downgraded by Wall Street Zen from Buy to Hold, even though other analysts still lean bullish on the stock.
• The company recently reported Q1 earnings of $0.40 per share, missing estimates of $0.56, but revenue came in above expectations at $614.73 million and rose 25.8% year over year.
• Despite the downgrade, analyst sentiment remains constructive overall, with a consensus rating of Moderate Buy and an average price target of $32 versus Friday’s opening price of $20.37.

CoreCivic (NYSE:CXW - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "buy" rating to a "hold" rating in a report released on Saturday.

A number of other research firms have also recently commented on CXW. JonesTrading reissued a "buy" rating and issued a $30.00 price target on shares of CoreCivic in a research note on Friday, February 13th. Benchmark assumed coverage on shares of CoreCivic in a research note on Tuesday, March 24th. They issued a "buy" rating and a $28.00 price target for the company. Three analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, CoreCivic has a consensus rating of "Moderate Buy" and a consensus price target of $32.00.

CoreCivic Price Performance

CXW stock opened at $20.37 on Friday. The company has a debt-to-equity ratio of 0.99, a current ratio of 2.44 and a quick ratio of 1.66. CoreCivic has a one year low of $15.73 and a one year high of $23.20. The stock has a market cap of $2.01 billion, a PE ratio of 16.56 and a beta of 0.68. The firm has a 50 day simple moving average of $19.52 and a two-hundred day simple moving average of $18.89.

CoreCivic (NYSE:CXW - Get Free Report) last released its quarterly earnings results on Wednesday, May 6th. The real estate investment trust reported $0.40 EPS for the quarter, missing analysts' consensus estimates of $0.56 by ($0.16). CoreCivic had a return on equity of 9.29% and a net margin of 5.53%.The company had revenue of $614.73 million during the quarter, compared to analysts' expectations of $604.48 million. During the same period in the prior year, the firm earned $0.45 EPS. CoreCivic's quarterly revenue was up 25.8% on a year-over-year basis. CoreCivic has set its FY 2026 guidance at 2.580-2.680 EPS. On average, analysts predict that CoreCivic will post 2.6 EPS for the current fiscal year.

Institutional Investors Weigh In On CoreCivic

Institutional investors have recently made changes to their positions in the business. NBC Securities Inc. boosted its stake in shares of CoreCivic by 533.9% in the 4th quarter. NBC Securities Inc. now owns 1,458 shares of the real estate investment trust's stock valued at $28,000 after purchasing an additional 1,228 shares in the last quarter. Covestor Ltd raised its holdings in CoreCivic by 31,516.7% during the 3rd quarter. Covestor Ltd now owns 1,897 shares of the real estate investment trust's stock valued at $39,000 after buying an additional 1,891 shares during the last quarter. Leonteq Securities AG bought a new stake in CoreCivic during the 4th quarter valued at $57,000. Smartleaf Asset Management LLC raised its holdings in CoreCivic by 33.0% during the 2nd quarter. Smartleaf Asset Management LLC now owns 2,829 shares of the real estate investment trust's stock valued at $59,000 after buying an additional 702 shares during the last quarter. Finally, Fifth Third Bancorp raised its holdings in CoreCivic by 320.7% during the 4th quarter. Fifth Third Bancorp now owns 3,340 shares of the real estate investment trust's stock valued at $64,000 after buying an additional 2,546 shares during the last quarter. Hedge funds and other institutional investors own 85.13% of the company's stock.

CoreCivic Company Profile

CoreCivic, Inc NYSE: CXW is a real estate investment trust specializing in the ownership, management and operation of private correctional and detention facilities in the United States. The company enters into contracts with federal, state and local government agencies to house inmates and detainees in facilities that it owns or operates on a concession basis. In addition to traditional prison operations, CoreCivic provides specialized services such as community-based reentry programs, electronic monitoring and rehabilitation initiatives aimed at reducing recidivism.

CoreCivic's portfolio encompasses a mix of adult correctional facilities, immigration detention centers, residential reentry centers and other community-based programs.

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