Geo Group (NYSE:GEO) Shares Up 4.4% - Should You Buy?

Key Points

• Geo Group's stock increased by 4.4% to $17.75, although trading volume was significantly down by 93% from the average.
• Wall Street analysts have given Geo Group a consensus rating of "Moderate Buy" with an average target price of $37.00.
• The company has authorized a $300 million stock buyback plan, reflecting confidence in its undervalued shares.

Geo Group Inc (The) (NYSE:GEO - Get Free Report) shot up 4.4% during trading on Tuesday . The stock traded as high as $17.29 and last traded at $17.75. 217,206 shares changed hands during trading, a decline of 93% from the average session volume of 2,930,526 shares. The stock had previously closed at $17.00.

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on GEO. Weiss Ratings reiterated a "hold (c)" rating on shares of Geo Group in a research note on Wednesday, October 8th. Jones Trading reduced their target price on Geo Group from $50.00 to $45.00 and set a "buy" rating for the company in a research note on Thursday, August 7th. Wedbush reiterated an "outperform" rating and set a $36.00 target price on shares of Geo Group in a research note on Monday, June 23rd. Finally, Wall Street Zen raised Geo Group from a "hold" rating to a "buy" rating in a report on Saturday, October 11th. Four investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $37.00.

Geo Group Stock Performance

The firm has a market capitalization of $2.47 billion, a price-to-earnings ratio of 26.92, a PEG ratio of 1.91 and a beta of 0.75. The company has a fifty day moving average of $20.43 and a two-hundred day moving average of $24.35. The company has a debt-to-equity ratio of 1.07, a quick ratio of 0.90 and a current ratio of 0.90.

Geo Group (NYSE:GEO - Get Free Report) last announced its quarterly earnings data on Wednesday, September 28th. The real estate investment trust reported $0.41 earnings per share for the quarter. The firm had revenue of $565.42 million during the quarter. Geo Group had a return on equity of 7.26% and a net margin of 3.69%. Geo Group has set its FY22 guidance at $2.40-2.46 EPS. As a group, equities research analysts predict 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 authorized a stock buyback plan on Wednesday, August 6th that authorizes the company to repurchase $300.00 million in shares. This repurchase authorization authorizes the real estate investment trust to repurchase up to 8.2% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company's board of directors believes its shares are undervalued.

Hedge Funds Weigh In On Geo Group

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Geneos Wealth Management Inc. raised its holdings in Geo Group by 245.1% in 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 acquiring an additional 782 shares in the last quarter. Twin Tree Management LP acquired a new position in shares of Geo Group during the 1st quarter worth $39,000. NewEdge Advisors LLC raised its holdings in shares of Geo Group by 81.9% during the 1st quarter. NewEdge Advisors LLC now owns 1,864 shares of the real estate investment trust's stock worth $54,000 after buying an additional 839 shares in the last quarter. Covestor Ltd raised its holdings in shares of Geo Group by 19.8% during the 1st quarter. Covestor Ltd now owns 2,653 shares of the real estate investment trust's stock worth $77,000 after buying an additional 438 shares in the last quarter. Finally, Militia Capital Partners LP acquired a new position in shares of Geo Group during the 1st quarter worth $91,000. 76.10% of the stock is owned by institutional investors and hedge funds.

Geo Group Company 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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