CoreCivic Target of Unusually High Options Trading (NYSE:CXW)

Key Points

• Unusual options activity: traders bought 10,085 call options on Friday for NYSE:CXW, about an 818% increase versus the typical daily volume of 1,098 calls.
• Heavy institutional accumulation: several hedge funds significantly increased positions (e.g., Rubric +140.6%, Balyasny +361.3%) and institutions now own 85.13% of CoreCivic shares.
• Stock and fundamentals: shares rose ~3% to $20.65; CoreCivic reported Q earnings of $0.52 beating estimates and revenue up 26% year-over-year, while analysts carry a consensus "Moderate Buy" and an average price target of $32.

CoreCivic, Inc. (NYSE:CXW - Get Free Report) was the recipient of some unusual options trading activity on Friday. Stock traders bought 10,085 call options on the stock. This is an increase of approximately 818% compared to the typical daily volume of 1,098 call options.

Hedge Funds Weigh In On CoreCivic

A number of institutional investors and hedge funds have recently bought and sold shares of CXW. Rubric Capital Management LP increased its holdings in CoreCivic by 140.6% in the 3rd quarter. Rubric Capital Management LP now owns 1,961,446 shares of the real estate investment trust's stock valued at $39,915,000 after buying an additional 1,146,166 shares during the period. Balyasny Asset Management L.P. increased its holdings in CoreCivic by 361.3% in the 2nd quarter. Balyasny Asset Management L.P. now owns 1,260,637 shares of the real estate investment trust's stock valued at $26,562,000 after buying an additional 987,375 shares during the period. Hatch Cove Capital LLC bought a new stake in CoreCivic in the 4th quarter valued at $12,951,000. Philosophy Capital Management LLC increased its holdings in CoreCivic by 144.9% in the 3rd quarter. Philosophy Capital Management LLC now owns 1,021,373 shares of the real estate investment trust's stock valued at $20,785,000 after buying an additional 604,311 shares during the period. Finally, Turiya Advisors Asia Ltd bought a new stake in CoreCivic in the 3rd quarter valued at $9,748,000. Institutional investors own 85.13% of the company's stock.

CoreCivic Stock Up 3.0%

Shares of CoreCivic stock traded up $0.61 during midday trading on Friday, reaching $20.65. 195,258 shares of the company's stock traded hands, compared to its average volume of 1,098,790. CoreCivic has a 52 week low of $15.73 and a 52 week high of $23.54. The company has a market cap of $2.04 billion, a price-to-earnings ratio of 19.17 and a beta of 0.61. The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.66 and a current ratio of 1.66. The company's 50 day simple moving average is $19.09 and its 200 day simple moving average is $18.76.

CoreCivic (NYSE:CXW - Get Free Report) last issued its quarterly earnings data on Wednesday, February 11th. The real estate investment trust reported $0.52 earnings per share for the quarter, topping analysts' consensus estimates of $0.43 by $0.09. CoreCivic had a net margin of 5.27% and a return on equity of 8.17%. The business had revenue of $603.95 million during the quarter, compared to analysts' expectations of $585.12 million. During the same period in the previous year, the company earned $0.39 earnings per share. CoreCivic's revenue for the quarter was up 26.0% on a year-over-year basis. Equities analysts expect that CoreCivic will post 2.57 earnings per share for the current fiscal year.

Analyst Ratings Changes

Several equities analysts have commented on CXW shares. JonesTrading reissued a "buy" rating and set a $30.00 target price on shares of CoreCivic in a research note on Friday, February 13th. Benchmark started coverage on shares of CoreCivic in a research report on Tuesday, March 24th. They issued a "buy" rating and a $28.00 target price on the stock. Finally, Wall Street Zen raised shares of CoreCivic from a "hold" rating to a "buy" rating in a research report on Sunday, April 19th. Three investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $32.00.

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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