Geo Group (NYSE:GEO) Stock Rating Upgraded by Wall Street Zen

Key Points

• Geo Group's stock rating has been upgraded from "hold" to "buy" by Wall Street Zen, reflecting increased analyst confidence in the company.
• The company has recently initiated a $300 million stock repurchase program, indicating management's belief that the stock is undervalued.
• Geo Group's latest quarterly earnings showed a revenue of $565.42 million and an EPS of $0.41, with a FY22 guidance set between $2.40 and $2.46 EPS.

Geo Group (NYSE:GEO - Get Free Report) was upgraded by equities research analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research report issued on Saturday.

Other equities analysts also recently issued research reports about the company. Weiss Ratings reiterated a "hold (c)" rating on shares of Geo Group in a report on Wednesday. Jones Trading lowered their price target on Geo Group from $50.00 to $45.00 and set a "buy" rating on the stock in a report on Thursday, August 7th. Finally, Wedbush reiterated an "outperform" rating and set a $36.00 price target on shares of Geo Group in a report on Monday, June 23rd. Four equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $37.00.

Geo Group Trading Down 2.9%

NYSE:GEO opened at $17.71 on Friday. The stock's 50 day moving average price is $21.10 and its 200 day moving average price is $24.92. Geo Group has a 52 week low of $13.59 and a 52 week high of $36.46. The company has a market capitalization of $2.51 billion, a P/E ratio of 27.25, a P/E/G ratio of 2.04 and a beta of 0.75. 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 results on Wednesday, September 28th. The real estate investment trust reported $0.41 EPS for the quarter. Geo Group had a return on equity of 7.26% and a net margin of 3.69%.The company had revenue of $565.42 million for the quarter. Geo Group has set its FY22 guidance at $2.40-2.46 EPS. On average, research analysts forecast that Geo Group will post 0.83 EPS for the current fiscal year.

Geo Group announced that its Board of Directors has initiated a stock repurchase 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 buy up to 8.2% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company's management believes its stock is undervalued.

Institutional Investors Weigh In On Geo Group

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Perpetual Ltd acquired a new stake in shares of Geo Group in the third quarter worth $17,268,000. Voya Investment Management LLC lifted its position in Geo Group by 6.3% in the third quarter. Voya Investment Management LLC now owns 260,547 shares of the real estate investment trust's stock worth $5,339,000 after purchasing an additional 15,504 shares during the period. Corient Private Wealth LLC bought a new position in Geo Group in the second quarter worth $385,000. Thrivent Financial for Lutherans lifted its position in Geo Group by 1.9% in the second quarter. Thrivent Financial for Lutherans now owns 101,892 shares of the real estate investment trust's stock worth $2,440,000 after purchasing an additional 1,937 shares during the period. Finally, Marex Group plc bought a new position in Geo Group in the second quarter worth $253,000. Institutional investors and hedge funds own 76.10% of the company's stock.

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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