CoreCivic (NYSE:CXW) to Buyback $500.00 million in Outstanding Stock

Key Points

• CoreCivic approved a $500 million stock repurchase plan, authorizing buybacks of up to 15.7% of its outstanding shares through open-market purchases—potentially signaling management views the stock as undervalued.
• Shares rose to $33.06, near the company’s 52-week high of $34.86, with a market capitalization of approximately $3.27 billion.
• Analyst sentiment is positive: CoreCivic has a consensus “Buy” rating and a consensus price target of $37.00, according to MarketBeat.

CoreCivic (NYSE:CXW - Get Free Report) announced that its board has approved a stock repurchase plan on Monday, August 10th, RTT News reports. The company plans to repurchase $500.00 million in outstanding shares. This repurchase authorization authorizes the real estate investment trust to purchase up to 15.7% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company's management believes its stock is undervalued.

CoreCivic Stock Performance

CoreCivic stock traded up $0.79 during mid-day trading on Monday, hitting $33.06. 1,629,358 shares of the company's stock traded hands, compared to its average volume of 1,102,546. The company has a debt-to-equity ratio of 0.86, a current ratio of 1.32 and a quick ratio of 1.32. The firm has a 50 day simple moving average of $29.46 and a two-hundred day simple moving average of $23.02. CoreCivic has a fifty-two week low of $15.73 and a fifty-two week high of $34.86. The stock has a market cap of $3.27 billion, a price-to-earnings ratio of 26.45 and a beta of 0.58.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on the company. Wall Street Zen upgraded CoreCivic from a "hold" rating to a "buy" rating in a report on Monday. Weiss Ratings upgraded shares of CoreCivic from a "hold (c+)" rating to a "buy (b-)" rating in a report on Wednesday, July 1st. UBS Group set a $35.00 target price on shares of CoreCivic in a research report on Tuesday, July 7th. Noble Financial reiterated an "outperform" rating on shares of CoreCivic in a research note on Monday. Finally, JonesTrading reissued a "buy" rating and set a $30.00 price target on shares of CoreCivic in a research report on Wednesday, August 5th. Four analysts have rated the stock with a Buy rating, According to data from MarketBeat, the stock presently has a consensus rating of "Buy" and a consensus target price of $37.00.

About CoreCivic

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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