Geo Group (NYSE:GEO) Upgraded by Zacks Research to Strong-Buy Rating

Key Points

• Zacks Research upgraded Geo Group (NYSE:GEO) from “hold” to “strong-buy,” adding to a string of more bullish analyst actions on the stock. The overall consensus rating now stands at “Buy,” with an average price target of $36.50.
• The stock rose 1.9% and opened at $31.18, near its 52-week high of $32.25. Geo Group’s shares have also been trading well above both their 50-day and 200-day moving averages.
• Geo Group recently beat earnings expectations, reporting Q1 EPS of $0.29 versus $0.19 expected and revenue of $705.21 million, up 16.6% year over year. The company also reiterated guidance for FY 2026 EPS of 1.150-1.250.

Geo Group (NYSE:GEO - Get Free Report) was upgraded by equities research analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research report issued to clients and investors on Monday,Zacks.com reports.

GEO has been the topic of a number of other research reports. Weiss Ratings raised shares of Geo Group from a "hold (c)" rating to a "hold (c+)" rating in a research note on Tuesday, June 9th. Wall Street Zen raised shares of Geo Group from a "hold" rating to a "buy" rating in a research note on Saturday, June 27th. Finally, Northland Securities upped their price objective on Geo Group from $30.00 to $40.00 and gave the stock an "outperform" rating in a report on Friday, June 26th. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Buy" and an average price target of $36.50.

Geo Group Stock Up 1.9%

GEO opened at $31.18 on Monday. The company has a debt-to-equity ratio of 1.06, a current ratio of 1.75 and a quick ratio of 1.75. The stock has a market capitalization of $4.17 billion, a price-to-earnings ratio of 15.83, a price-to-earnings-growth ratio of 1.82 and a beta of 0.79. The business has a 50-day moving average of $27.22 and a two-hundred day moving average of $20.46. Geo Group has a 12 month low of $12.51 and a 12 month high of $32.25.

Geo Group (NYSE:GEO - Get Free Report) last announced its quarterly earnings data on Wednesday, May 6th. The real estate investment trust reported $0.29 earnings per share for the quarter, topping the consensus estimate of $0.19 by $0.10. Geo Group had a net margin of 10.00% and a return on equity of 9.43%. The business had revenue of $705.21 million for the quarter, compared to analyst estimates of $688.89 million. During the same period in the prior year, the firm posted $0.14 EPS. The company's revenue was up 16.6% on a year-over-year basis. Geo Group has set its FY 2026 guidance at 1.150-1.250 EPS and its Q2 2026 guidance at 0.250-0.290 EPS. On average, research analysts expect that Geo Group will post 1.2 earnings per share for the current year.

Institutional Investors Weigh In On Geo Group

Several institutional investors and hedge funds have recently modified their holdings of the stock. Covestor Ltd grew its position in shares of Geo Group by 16.6% during the 4th quarter. Covestor Ltd now owns 4,533 shares of the real estate investment trust's stock valued at $73,000 after buying an additional 646 shares during the last quarter. Public Employees Retirement System of Ohio raised its stake in Geo Group by 22.7% during the first quarter. Public Employees Retirement System of Ohio now owns 3,866 shares of the real estate investment trust's stock worth $65,000 after acquiring an additional 715 shares during the period. Kestra Advisory Services LLC lifted its holdings in Geo Group by 2.4% in the first quarter. Kestra Advisory Services LLC now owns 30,462 shares of the real estate investment trust's stock worth $512,000 after acquiring an additional 727 shares during the last quarter. ProShare Advisors LLC boosted its stake in Geo Group by 3.0% in the fourth quarter. ProShare Advisors LLC now owns 26,333 shares of the real estate investment trust's stock valued at $424,000 after acquiring an additional 772 shares during the period. Finally, Geneos Wealth Management Inc. boosted its stake in Geo Group by 245.1% in the second 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 during the period. Hedge funds and other institutional investors own 76.10% of the company's stock.

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.

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