Cinctive Capital Management LP Purchases New Stake in Geo Group Inc (The) $GEO

Key Points

• Cinctive Capital Management LP has made a new investment of approximately $4.64 million in Geo Group Inc, acquiring 158,847 shares of the real estate investment trust during the 1st quarter.
• Geo Group recently announced a $300 million stock repurchase plan, indicating management's belief that the stock may be undervalued.
• Analysts have issued a mix of ratings for Geo Group, with an average rating of "Buy" and a consensus price target of $37.00 for the stock, despite recent adjustments in target prices from various firms.

Cinctive Capital Management LP bought a new stake in Geo Group Inc (The) (NYSE:GEO - Free Report) in the 1st quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor bought 158,847 shares of the real estate investment trust's stock, valued at approximately $4,640,000. Cinctive Capital Management LP owned about 0.11% of Geo Group at the end of the most recent quarter.

Several other hedge funds have also modified their holdings of GEO. Twin Tree Management LP bought a new position in shares of Geo Group during the first quarter valued at approximately $39,000. NBC Securities Inc. acquired a new position in Geo Group in the first quarter valued at about $58,000. Covestor Ltd raised its position in Geo Group by 19.8% in the 1st quarter. Covestor Ltd now owns 2,653 shares of the real estate investment trust's stock worth $77,000 after purchasing an additional 438 shares during the last quarter. Morse Asset Management Inc grew its position in shares of Geo Group by 29.0% during the 4th quarter. Morse Asset Management Inc now owns 6,760 shares of the real estate investment trust's stock worth $189,000 after buying an additional 1,520 shares during the period. Finally, Alamea Verwaltungs GmbH acquired a new stake in shares of Geo Group in the first quarter valued at about $203,000. 76.10% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on GEO. Wedbush reissued an "outperform" rating and set a $36.00 price target on shares of Geo Group in a research report on Monday, June 23rd. Jones Trading reduced their price target on shares of Geo Group from $50.00 to $45.00 and set a "buy" rating for the company in a research report on Thursday, August 7th. Four analysts have rated the stock with a Buy rating, According to MarketBeat.com, the company presently has a consensus rating of "Buy" and an average price target of $37.00.

Geo Group Stock Performance

Geo Group stock traded up $0.87 during mid-day trading on Tuesday, reaching $21.57. 1,449,683 shares of the company traded hands, compared to its average volume of 3,063,234. The firm's fifty day moving average is $23.29 and its two-hundred day moving average is $25.83. The company has a debt-to-equity ratio of 1.07, a current ratio of 0.90 and a quick ratio of 0.90. The company has a market capitalization of $3.05 billion, a price-to-earnings ratio of 33.14, a price-to-earnings-growth ratio of 2.24 and a beta of 0.75. Geo Group Inc has a fifty-two week low of $11.75 and a fifty-two week high of $36.46.

Geo Group (NYSE:GEO - Get Free Report) last posted its earnings results on Wednesday, August 6th. The real estate investment trust reported $0.22 EPS for the quarter, beating analysts' consensus estimates of $0.16 by $0.06. Geo Group had a return on equity of 7.26% and a net margin of 3.69%.The company had revenue of $636.17 million for the quarter, compared to the consensus estimate of $621.55 million. During the same quarter in the previous year, the business earned $0.23 earnings per share. The company's revenue for the quarter was up 4.8% on a year-over-year basis. On average, equities research analysts expect that Geo Group Inc will post 0.83 earnings per share for the current fiscal year.

Geo Group declared that its Board of Directors has initiated a share buyback program on Wednesday, August 6th that authorizes the company to repurchase $300.00 million in outstanding shares. This repurchase authorization authorizes the real estate investment trust to repurchase up to 8.2% of its stock through open market purchases. Stock repurchase programs are often a sign that the company's leadership believes its stock is undervalued.

Geo Group Profile

The GEO Group, Inc NYSE: GEO engages in ownership, leasing, and management of secure facilities, processing centers, and community-based reentry facilities in the United States, Australia, the United Kingdom, and South Africa. The company also provides secure facility management services, including the provision of security, administrative, rehabilitation, education, and food services; reentry services, such as temporary housing, programming, employment assistance, and other services; electronic monitoring and supervision services; and transportation services; as well as designs, constructs, and finances new facilities through projects.