Bank of New York Mellon Corp Acquires New Shares in CoreCivic, Inc. $CXW

Key Points

• Bank of New York Mellon acquired 609,466 CoreCivic shares valued at approximately $18.5 million, giving it a 0.62% stake. Institutional investors and hedge funds collectively own 85.13% of the company.
• CoreCivic exceeded quarterly expectations, reporting $0.38 in EPS versus the $0.34 consensus and $684.9 million in revenue, up 27.3% year over year. The company also authorized a $500 million share buyback, covering up to 15.7% of outstanding shares.
• Analysts maintain a positive outlook, with a consensus “Buy” rating and $37 price target versus the reported $33.17 share price. However, insiders sold 439,287 shares worth approximately $14.7 million over the past 90 days.

Bank of New York Mellon Corp bought a new position in shares of CoreCivic, Inc. (NYSE:CXW - Free Report) during the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund bought 609,466 shares of the real estate investment trust's stock, valued at approximately $18,516,000. Bank of New York Mellon Corp owned approximately 0.62% of CoreCivic at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in the business. Leonteq Securities AG acquired a new position in shares of CoreCivic in the 4th quarter valued at approximately $57,000. Smartleaf Asset Management LLC raised its holdings in CoreCivic by 33.0% during the 2nd quarter. Smartleaf Asset Management LLC now owns 2,829 shares of the real estate investment trust's stock worth $59,000 after buying an additional 702 shares during the period. Fifth Third Bancorp lifted its stake in CoreCivic by 320.7% in the fourth quarter. Fifth Third Bancorp now owns 3,340 shares of the real estate investment trust's stock valued at $64,000 after buying an additional 2,546 shares in the last quarter. Kestra Advisory Services LLC bought a new position in CoreCivic in the fourth quarter valued at approximately $71,000. Finally, Summit Securities Group LLC acquired a new position in shares of CoreCivic in the fourth quarter valued at approximately $137,000. 85.13% of the stock is owned by institutional investors and hedge funds.

CoreCivic Stock Performance

Shares of CXW opened at $33.17 on Tuesday. The stock has a market capitalization of $3.28 billion, a price-to-earnings ratio of 26.54 and a beta of 0.58. CoreCivic, Inc. has a 12 month low of $15.73 and a 12 month high of $34.86. The firm has a fifty day simple moving average of $31.61 and a 200 day simple moving average of $24.53. The company has a current ratio of 1.32, a quick ratio of 1.32 and a debt-to-equity ratio of 0.86.

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

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

Insider Buying and Selling

In other CoreCivic news, CFO David Garfinkle sold 50,000 shares of the business's stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $33.96, for a total transaction of $1,698,000.00. Following the transaction, the chief financial officer owned 293,353 shares of the company's stock, valued at $9,962,267.88. The trade was a 14.56% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director John R. Prann, Jr. sold 3,098 shares of the company's stock in a transaction that occurred on Wednesday, August 26th. The stock was sold at an average price of $34.00, for a total value of $105,332.00. Following the sale, the director owned 5,000 shares in the company, valued at approximately $170,000. This represents a 38.26% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 439,287 shares of company stock worth $14,734,193. Insiders own 1.76% of the company's stock.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on CXW shares. Northland Securities set a $40.00 price objective on shares of CoreCivic in a research report on Friday, June 26th. Weiss Ratings raised shares of CoreCivic from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Wednesday, July 1st. Wall Street Zen raised shares of CoreCivic from a "hold" rating to a "buy" rating in a research note on Monday, August 10th. Noble Financial reiterated an "outperform" rating on shares of CoreCivic in a report on Monday, August 10th. Finally, JonesTrading reissued a "buy" rating and issued a $30.00 price target on shares of CoreCivic in a research note on Wednesday, August 5th. Four equities research analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the stock presently has a consensus rating of "Buy" and a consensus target price of $37.00.

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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