CoreCivic (NYSE:CXW) Shares Gap Up Following Strong Earnings

Key Points

• CoreCivic's shares opened at $21.53 after a strong earnings announcement, exceeding previous close of $19.60. They last traded at $20.49, with a trading volume of 242,962 shares.
• The company reported $0.59 earnings per share (EPS) for the quarter, beating analysts' estimates of $0.43 by $0.16, along with revenues of $538.17 million, also surpassing expectations.
• Several brokerages maintain a bullish outlook, with Wedbush issuing an "outperform" rating and a target price of $38.00, indicating continued investor confidence in CoreCivic's stock performance.

Shares of CoreCivic, Inc. (NYSE:CXW - Get Free Report) gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $19.60, but opened at $21.53. CoreCivic shares last traded at $20.49, with a volume of 242,962 shares trading hands.

The real estate investment trust reported $0.59 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.43 by $0.16. The company had revenue of $538.17 million for the quarter, compared to the consensus estimate of $499.02 million. CoreCivic had a net margin of 4.33% and a return on equity of 5.75%. CoreCivic's revenue was up 9.8% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.42 earnings per share.

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on CXW. Wedbush reissued an "outperform" rating and issued a $38.00 target price on shares of CoreCivic in a research note on Wednesday, June 11th. Jones Trading restated a "buy" rating and issued a $30.00 price target on shares of CoreCivic in a report on Friday, July 18th. Finally, Wall Street Zen cut shares of CoreCivic from a "buy" rating to a "hold" rating in a report on Saturday, July 5th. One investment analyst has rated the stock with a hold rating and four have issued a buy rating to the company. According to MarketBeat.com, CoreCivic has a consensus rating of "Moderate Buy" and a consensus price target of $33.33.

Insiders Place Their Bets

In other news, EVP Anthony L. Grande sold 10,000 shares of the firm's stock in a transaction dated Monday, May 19th. The shares were sold at an average price of $22.22, for a total value of $222,200.00. Following the sale, the executive vice president directly owned 180,559 shares in the company, valued at approximately $4,012,020.98. This trade represents a 5.25% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Stacia Hylton sold 4,000 shares of the firm's stock in a transaction dated Friday, May 30th. The shares were sold at an average price of $21.69, for a total transaction of $86,760.00. Following the completion of the sale, the director owned 82,969 shares in the company, valued at $1,799,597.61. This represents a 4.60% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 184,246 shares of company stock worth $4,061,215. Insiders own 2.30% of the company's stock.

Hedge Funds Weigh In On CoreCivic

Institutional investors have recently bought and sold shares of the business. Woodmont Investment Counsel LLC purchased a new position in shares of CoreCivic during the 1st quarter valued at approximately $514,000. Wedge Capital Management L L P NC boosted its stake in CoreCivic by 29.3% during the 1st quarter. Wedge Capital Management L L P NC now owns 79,527 shares of the real estate investment trust's stock worth $1,614,000 after purchasing an additional 18,036 shares during the last quarter. Principal Financial Group Inc. boosted its stake in CoreCivic by 2.3% during the 1st quarter. Principal Financial Group Inc. now owns 547,061 shares of the real estate investment trust's stock worth $11,100,000 after purchasing an additional 12,374 shares during the last quarter. Nebula Research & Development LLC acquired a new stake in CoreCivic during the 4th quarter worth $361,000. Finally, State of Tennessee Department of Treasury boosted its stake in CoreCivic by 65.5% during the 4th quarter. State of Tennessee Department of Treasury now owns 48,999 shares of the real estate investment trust's stock worth $1,065,000 after purchasing an additional 19,391 shares during the last quarter. 85.13% of the stock is owned by hedge funds and other institutional investors.

CoreCivic Stock Performance

The company has a debt-to-equity ratio of 0.66, a quick ratio of 1.55 and a current ratio of 1.55. The firm's 50 day simple moving average is $20.99 and its 200-day simple moving average is $20.74. The company has a market cap of $2.24 billion, a price-to-earnings ratio of 26.85 and a beta of 0.80.

CoreCivic Company Profile

CoreCivic, Inc owns and operates partnership correctional, detention, and residential reentry facilities in the United States. It operates through three segments: CoreCivic Safety, CoreCivic Community, and CoreCivic Properties. The company provides a range of solutions to government partners that serve the public good through corrections and detention management, a network of residential reentry centers to help address America's recidivism crisis, and government real estate solutions.

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