Bank of America Corp DE Makes New Investment in CoreCivic, Inc. $CXW

Key Points

• Bank of America initiated a position in CoreCivic during the second quarter, purchasing 191,878 shares worth approximately $5.83 million. Institutional investors collectively own 85.13% of the company.
• Analysts maintain a favorable outlook, with CoreCivic receiving a consensus “Buy” rating and an average price target of $39.40, versus a recent share price near $32.11. The company also authorized a $500 million share-repurchase program.
• CoreCivic exceeded quarterly earnings and revenue expectations, reporting $0.38 in EPS and $684.92 million in revenue, though insiders sold roughly $15.4 million of stock over the prior three months. The company also appointed Lucibeth N. Mayberry as CEO after Patrick Swindle stepped down for health reasons.

Bank of America Corp DE bought a new position in shares of CoreCivic, Inc. (NYSE:CXW - Free Report) in the second quarter, according to the company in its most recent filing with the SEC. The institutional investor bought 191,878 shares of the real estate investment trust's stock, valued at approximately $5,829,000. Bank of America Corp DE owned approximately 0.19% of CoreCivic at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently modified their holdings of CXW. PNC Financial Services Group Inc. lifted its holdings in shares of CoreCivic by 1.6% in the first quarter. PNC Financial Services Group Inc. now owns 31,880 shares of the real estate investment trust's stock valued at $603,000 after purchasing an additional 510 shares in the last quarter. State of Wyoming grew its holdings in shares of CoreCivic by 3.1% during the first quarter. State of Wyoming now owns 22,172 shares of the real estate investment trust's stock worth $419,000 after buying an additional 659 shares in the last quarter. Bessemer Group Inc. raised its position in CoreCivic by 0.4% in the 1st quarter. Bessemer Group Inc. now owns 166,475 shares of the real estate investment trust's stock valued at $3,148,000 after buying an additional 742 shares during the last quarter. Persistent Asset Partners Ltd bought a new stake in CoreCivic in the 2nd quarter valued at approximately $52,000. Finally, Handelsbanken Fonder AB boosted its position in CoreCivic by 9.5% during the 2nd quarter. Handelsbanken Fonder AB now owns 24,300 shares of the real estate investment trust's stock worth $738,000 after acquiring an additional 2,100 shares during the last quarter. Institutional investors and hedge funds own 85.13% of the company's stock.

Insider Buying and Selling at CoreCivic

In other CoreCivic news, CFO David Garfinkle sold 50,000 shares of CoreCivic stock in a transaction on Monday, August 17th. The shares were sold at an average price of $33.76, for a total transaction of $1,688,000.00. Following the completion of the transaction, the chief financial officer directly owned 343,353 shares of the company's stock, valued at $11,591,597.28. The trade was a 12.71% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Mark A. Emkes sold 30,000 shares of CoreCivic stock in a transaction on Monday, August 24th. The stock was sold at an average price of $34.25, for a total transaction of $1,027,500.00. Following the transaction, the director directly owned 141,274 shares of the company's stock, valued at approximately $4,838,634.50. This trade represents a 17.52% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 459,287 shares of company stock worth $15,431,193 in the last three months. 1.76% of the stock is owned by insiders.

Analysts Set New Price Targets

Several brokerages have issued reports on CXW. JonesTrading reiterated a "buy" rating and issued a $42.00 price target on shares of CoreCivic in a research note on Friday, September 18th. UBS Group set a $35.00 price objective on CoreCivic in a report on Tuesday, July 7th. Weiss Ratings raised CoreCivic from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Wednesday, July 1st. Northland Securities set a $40.00 price target on CoreCivic in a research report on Friday, June 26th. Finally, Benchmark raised their price target on CoreCivic from $41.00 to $45.00 and gave the company a "buy" rating in a research note on Friday, August 7th. Four analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, CoreCivic presently has a consensus rating of "Buy" and a consensus price target of $39.40.

CoreCivic News Roundup

Here are the key news stories impacting CoreCivic this week:

• Positive Sentiment: The board appointed Lucibeth N. Mayberry as president, chief executive officer and a director, providing an immediate leadership successor. The company said Patrick D. Swindle stepped down because of health reasons. CoreCivic leadership announcement
• Neutral Sentiment: Coverage discussing CoreCivic’s transition and the NYSE Composite focuses on the potential implications of the leadership change for the company’s market profile and index-related investor attention, rather than announcing a change to operations or financial guidance. CoreCivic transition and NYSE Composite
• Negative Sentiment: Investors viewed the sudden departure of CEO Patrick Swindle as a risk because it creates uncertainty around strategic continuity and execution, even though the company attributed the move to health reasons. Reports in multiple markets linked the leadership transition to the stock’s decline. Why CoreCivic stock is falling

CoreCivic Stock Down 0.1%

Shares of CXW stock opened at $32.11 on Monday. CoreCivic, Inc. has a 52-week low of $15.73 and a 52-week high of $36.55. The stock has a market cap of $3.18 billion, a price-to-earnings ratio of 25.69 and a beta of 0.60. The firm's 50-day moving average is $32.87 and its 200-day moving average is $26.67. The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.32 and a current ratio of 1.32.

CoreCivic (NYSE:CXW - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The real estate investment trust reported $0.38 EPS for the quarter, topping analysts' consensus estimates of $0.34 by $0.04. The business had revenue of $684.92 million during the quarter, compared to analysts' expectations of $618.63 million. CoreCivic had a return on equity of 9.22% and a net margin of 5.15%.CoreCivic's quarterly revenue was up 27.3% on a year-over-year basis. During the same quarter last year, the company posted $0.59 earnings per share. CoreCivic has set its FY 2026 guidance at 2.610-2.700 EPS. Sell-side analysts predict that CoreCivic, Inc. will post 2.69 EPS for the current year.

CoreCivic announced that its Board of Directors has initiated a share repurchase program on Monday, August 10th that permits the company to buyback $500.00 million in shares. This buyback authorization permits the real estate investment trust to buy up to 15.7% of its stock through open market purchases. Stock buyback programs are typically an indication that the company's leadership believes its stock is undervalued.

CoreCivic Profile

CoreCivic, Inc NYSE: CXW is a diversified government-solutions company that provides detention, corrections and residential reentry services. The company partners with federal, state and local government agencies to design, develop, own, lease and manage correctional and detention facilities in the United States.

Through its CoreCivic Safety operations, the company manages correctional and detention facilities and provides related services, including security, inmate care, transportation and rehabilitation programs.

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