Geo Group (NYSE:GEO) Trading 6.6% Higher - Here's Why

Key Points

• Geo Group's stock rose 6.6% on Friday, reaching a high of $26.06 before closing at $26.16, despite a 33% decrease in trading volume compared to its average.
• Analysts have adjusted their price targets, with Jones Trading lowering their target from $55.00 to $50.00, while Wedbush maintains a target of $36.00, reflecting a mixed outlook.
• The company missed quarterly earnings expectations, reporting $0.14 EPS versus an estimate of $0.18, with revenues also falling short of projections at $604.65 million.
• Institutional investors hold a significant stake, owning 76.10% of Geo Group, indicating strong interest from hedge funds in the company's operations.

Geo Group Inc (The) (NYSE:GEO - Get Free Report) shares shot up 6.6% during trading on Friday . The stock traded as high as $26.06 and last traded at $26.16. 1,990,671 shares traded hands during trading, a decline of 33% from the average session volume of 2,979,061 shares. The stock had previously closed at $24.55.

Analysts Set New Price Targets

A number of research firms have commented on GEO. Jones Trading reduced their target price on Geo Group from $55.00 to $50.00 and set a "buy" rating for the company in a report on Thursday, May 8th. Wedbush reissued an "outperform" rating and issued a $36.00 target price on shares of Geo Group in a report on Monday, June 23rd. Finally, Wall Street Zen upgraded shares of Geo Group from a "sell" rating to a "hold" rating in a research report on Friday, May 9th. One investment analyst has rated the stock with a hold rating and four have assigned a buy rating to the company. According to MarketBeat, Geo Group presently has an average rating of "Moderate Buy" and a consensus price target of $38.00.

Geo Group Trading Up 7.7%

The stock has a market cap of $3.74 billion, a price-to-earnings ratio of 139.01, a P/E/G ratio of 2.57 and a beta of 0.71. The business's fifty day simple moving average is $25.57 and its 200 day simple moving average is $27.67. The company has a debt-to-equity ratio of 1.24, a current ratio of 1.29 and a quick ratio of 1.29.

Geo Group (NYSE:GEO - Get Free Report) last announced its quarterly earnings results on Wednesday, May 7th. The real estate investment trust reported $0.14 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.18 by ($0.04). The firm had revenue of $604.65 million for the quarter, compared to analyst estimates of $611.81 million. Geo Group had a net margin of 1.19% and a return on equity of 7.36%. During the same period last year, the firm posted $0.14 EPS. On average, research analysts predict that Geo Group Inc will post 0.83 EPS for the current year.

Hedge Funds Weigh In On Geo Group

Several hedge funds have recently made changes to their positions in GEO. NewEdge Advisors LLC acquired a new position in shares of Geo Group in the 4th quarter worth approximately $29,000. Twin Tree Management LP acquired a new position in shares of Geo Group in the 1st quarter worth approximately $39,000. NBC Securities Inc. acquired a new position in shares of Geo Group in the 1st quarter worth approximately $58,000. Covestor Ltd grew its stake in shares of 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. Finally, Militia Capital Partners LP acquired a new position in shares of Geo Group in the first quarter worth about $91,000. 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.