Philadelphia Financial Management of San Francisco LLC Invests $14.31 Million in Geo Group Inc (The) $GEO

Key Points

• Philadelphia Financial Management acquired 484,100 GEO shares worth approximately $14.3 million, representing about 0.37% of the company; institutional investors collectively own 76.1% of the stock.
• GEO exceeded quarterly expectations, reporting adjusted earnings of $0.37 per share versus a $0.29 estimate and revenue of $732.1 million, up 15.1% year over year.
• Analyst sentiment remains favorable, with an average “Buy” rating and a $40 price target, although two insiders recently sold a combined 17,000 shares. GEO recently traded at $32.37.

Philadelphia Financial Management of San Francisco LLC acquired a new stake in Geo Group Inc (The) (NYSE:GEO - Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm acquired 484,100 shares of the real estate investment trust's stock, valued at approximately $14,305,155. Geo Group accounts for about 0.0% of Philadelphia Financial Management of San Francisco LLC's portfolio, making the stock its 6th largest holding. Philadelphia Financial Management of San Francisco LLC owned approximately 0.37% of Geo Group as of its most recent filing with the Securities & Exchange Commission.

Several other large investors have also recently modified their holdings of the stock. Geneos Wealth Management Inc. raised its position in shares of Geo Group by 245.1% during the 2nd quarter. Geneos Wealth Management Inc. now owns 1,101 shares of the real estate investment trust's stock valued at $26,000 after purchasing an additional 782 shares during the period. Bessemer Group Inc. raised its holdings in shares of Geo Group by 111.9% in the first quarter. Bessemer Group Inc. now owns 1,723 shares of the real estate investment trust's stock valued at $29,000 after buying an additional 910 shares during the last quarter. IFP Advisors Inc purchased a new position in Geo Group in the 4th quarter valued at about $30,000. Global Retirement Partners LLC purchased a new position in shares of Geo Group during the 2nd quarter valued at approximately $34,000. Finally, NewEdge Advisors LLC increased its stake in shares of Geo Group by 81.9% during the first quarter. NewEdge Advisors LLC now owns 1,864 shares of the real estate investment trust's stock valued at $54,000 after acquiring an additional 839 shares during the period. Hedge funds and other institutional investors own 76.10% of the company's stock.

Geo Group Stock Down 0.7%

GEO stock traded down $0.23 during mid-day trading on Friday, reaching $32.37. 1,361,070 shares of the company traded hands, compared to its average volume of 2,118,452. The company has a quick ratio of 1.65, a current ratio of 1.65 and a debt-to-equity ratio of 1.00. The stock has a market cap of $4.26 billion, a price-to-earnings ratio of 15.27, a P/E/G ratio of 1.79 and a beta of 0.79. Geo Group Inc has a fifty-two week low of $12.51 and a fifty-two week high of $33.15. The firm's 50 day moving average price is $30.61 and its 200 day moving average price is $23.22.

Geo Group (NYSE:GEO - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The real estate investment trust reported $0.37 earnings per share for the quarter, topping analysts' consensus estimates of $0.29 by $0.08. Geo Group had a net margin of 10.31% and a return on equity of 10.42%. The company had revenue of $732.07 million during the quarter, compared to analyst estimates of $721.43 million. During the same period in the previous year, the business earned $0.22 EPS. The firm's revenue for the quarter was up 15.1% on a year-over-year basis. As a group, equities research analysts predict that Geo Group Inc will post 1.31 EPS for the current fiscal year.

Insider Activity at Geo Group

In other Geo Group news, VP Matthew Albence sold 10,000 shares of the company's stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $31.69, for a total value of $316,900.00. Following the transaction, the vice president directly owned 99,399 shares of the company's stock, valued at $3,149,954.31. This represents a 9.14% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Ronald A. Brack sold 7,000 shares of Geo Group stock in a transaction on Friday, August 21st. The shares were sold at an average price of $32.00, for a total value of $224,000.00. Following the sale, the insider directly owned 71,614 shares of the company's stock, valued at approximately $2,291,648. The trade was a 8.90% decrease in their position. The disclosure for this sale is available in the SEC filing. 4.98% of the stock is currently owned by insiders.

Wall Street Analysts Forecast Growth

GEO has been the subject of a number of analyst reports. UBS Group reaffirmed an "outperform" rating on shares of Geo Group in a report on Monday, August 10th. JonesTrading boosted their price target on Geo Group from $33.00 to $40.00 and gave the stock a "buy" rating in a research report on Thursday, August 6th. Wall Street Zen downgraded shares of Geo Group from a "buy" rating to a "hold" rating in a report on Saturday, July 25th. Zacks Research raised shares of Geo Group from a "hold" rating to a "strong-buy" rating in a research note on Monday, July 20th. Finally, Northland Securities upped their price objective on shares of Geo Group from $30.00 to $40.00 and gave the stock an "outperform" rating in a research report on Friday, June 26th. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Buy" and an average price target of $40.00.

About Geo Group

The GEO Group NYSE: GEO is a leading provider of correctional, detention and community reentry services to government agencies around the world. As a real estate investment trust, the company specializes in the design, financing, development and operation of secure facilities for adult and juvenile offenders, immigration detainees and individuals requiring mental health treatment or substance abuse programming. GEO's integrated service model also encompasses electronic monitoring, rehabilitative programming and post-release supervision aimed at reducing recidivism and enhancing public safety.

GEO's portfolio spans a range of facility types, including medium- and maximum-security correctional institutions, residential reentry centers, mental health treatment units and immigration detention centers.