Continental General Insurance Co. Invests $11.18 Million in Geo Group Inc (The) $GEO

Key Points

• Continental General Insurance Co. invested approximately $11.18 million in Geo Group Inc, acquiring 382,885 shares, which represents 3.9% of its total holdings.
• Geo Group's Board of Directors has initiated a stock repurchase program allowing the company to repurchase up to $300 million in shares, indicating potential undervaluation of its stock.
• The company reported earnings of $0.22 per share for the last quarter, exceeding analysts' expectations, with revenue increasing 4.8% year-over-year.

Continental General Insurance Co. acquired a new stake in shares of Geo Group Inc (The) (NYSE:GEO - Free Report) during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm acquired 382,885 shares of the real estate investment trust's stock, valued at approximately $11,184,000. Geo Group accounts for approximately 3.9% of Continental General Insurance Co.'s holdings, making the stock its 6th biggest holding. Continental General Insurance Co. owned approximately 0.27% of Geo Group as of its most recent SEC filing.

Other large investors also recently bought and sold shares of the company. Wellington Management Group LLP boosted its position in Geo Group by 312.7% during the 1st quarter. Wellington Management Group LLP now owns 2,608,619 shares of the real estate investment trust's stock valued at $76,198,000 after acquiring an additional 1,976,544 shares in the last quarter. Point72 Asset Management L.P. lifted its stake in shares of Geo Group by 202.6% during the 4th quarter. Point72 Asset Management L.P. now owns 2,124,783 shares of the real estate investment trust's stock worth $59,451,000 after purchasing an additional 1,422,676 shares during the last quarter. Newbrook Capital Advisors LP bought a new stake in Geo Group during the fourth quarter valued at about $35,738,000. BlueCrest Capital Management Ltd purchased a new position in Geo Group in the fourth quarter valued at about $34,456,000. Finally, Findell Capital Management LLC bought a new position in Geo Group in the fourth quarter worth about $14,410,000. Institutional investors own 76.10% of the company's stock.

Geo Group Stock Down 1.7%

NYSE:GEO opened at $20.67 on Wednesday. The company has a current ratio of 0.90, a quick ratio of 0.90 and a debt-to-equity ratio of 1.07. Geo Group Inc has a twelve month low of $11.75 and a twelve month high of $36.46. The company has a market cap of $2.93 billion, a PE ratio of 31.80, a P/E/G ratio of 2.29 and a beta of 0.75. The company's 50 day moving average is $23.80 and its two-hundred day moving average is $26.24.

Geo Group (NYSE:GEO - Get Free Report) last posted its quarterly earnings data on Wednesday, August 6th. The real estate investment trust reported $0.22 EPS for the quarter, topping the consensus estimate of $0.16 by $0.06. Geo Group had a net margin of 3.69% and a return on equity of 7.26%. The business had revenue of $636.17 million during the quarter, compared to the consensus estimate of $621.55 million. During the same period in the previous year, the firm posted $0.23 earnings per share. The business's revenue for the quarter was up 4.8% compared to the same quarter last year. Analysts anticipate that Geo Group Inc will post 0.83 EPS for the current year.

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

Analyst Ratings Changes

Several research firms have commented on GEO. Jones Trading decreased 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. Wall Street Zen raised shares of Geo Group from a "sell" rating to a "hold" rating in a research report on Friday, May 9th. Finally, Wedbush restated an "outperform" rating and issued a $36.00 target price on shares of Geo Group in a research note on Monday, June 23rd. Four investment analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, the stock currently has an average rating of "Buy" and a consensus price target of $37.00.

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.

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