CoreCivic (NYSE:CXW) Shares Gap Up on Earnings Beat

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.

CoreCivic, Inc. (NYSE:CXW - Get Free Report)'s share price gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. 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 changing hands.

The real estate investment trust reported $0.59 earnings per share for the quarter, topping the consensus estimate of $0.43 by $0.16. The business had revenue of $538.17 million during the quarter, compared to the consensus estimate of $499.02 million. CoreCivic had a net margin of 5.21% and a return on equity of 7.12%. The firm's revenue for the quarter was up 9.8% on a year-over-year basis. During the same period in the previous year, the firm posted $0.42 earnings per share.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on the stock. Wall Street Zen raised shares of CoreCivic from a "hold" rating to a "strong-buy" rating in a research note on Saturday. Jones Trading restated a "buy" rating and issued a $30.00 price objective on shares of CoreCivic in a report on Thursday. Finally, Wedbush restated an "outperform" rating and issued a $38.00 price objective on shares of CoreCivic in a report on Wednesday, June 11th. Four analysts have rated the stock with a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Buy" and a consensus target price of $33.33.

Insider Activity

In related news, COO Patrick D. Swindle sold 23,000 shares of the stock in a transaction that occurred on Tuesday, May 20th. The shares were sold at an average price of $22.39, for a total transaction of $514,970.00. Following the transaction, the chief operating officer owned 241,630 shares in the company, valued at $5,410,095.70. This represents a 8.69% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Lucibeth Mayberry sold 75,000 shares of the stock in a transaction that occurred on Wednesday, May 14th. The shares were sold at an average price of $21.49, for a total transaction of $1,611,750.00. Following the transaction, the executive vice president owned 211,232 shares in the company, valued at approximately $4,539,375.68. This trade represents a 26.20% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 184,246 shares of company stock valued at $4,061,215. Company insiders own 2.30% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the business. Woodmont Investment Counsel LLC purchased a new position in shares of CoreCivic during the 1st quarter worth $514,000. Wedge Capital Management L L P NC boosted its stake in shares of 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 acquiring an additional 18,036 shares during the last quarter. Principal Financial Group Inc. boosted its stake in shares of 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 acquiring an additional 12,374 shares during the last quarter. Nebula Research & Development LLC purchased a new position in shares of CoreCivic during the 4th quarter worth $361,000. Finally, State of Tennessee Department of Treasury boosted its stake in shares of 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 acquiring an additional 19,391 shares during the last quarter. 85.13% of the stock is currently owned by institutional investors.

CoreCivic Stock Performance

The company has a current ratio of 1.60, a quick ratio of 1.60 and a debt-to-equity ratio of 0.68. The business's 50 day moving average is $20.92 and its two-hundred day moving average is $20.68. The company has a market cap of $2.17 billion, a PE ratio of 21.55 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.