CoreCivic (NYSE:CXW) Sets New 1-Year High - Here's Why

Key Points

• CoreCivic shares reached a new 52-week high, trading as high as $36.07 and rising 3.3%. Analysts maintain a consensus “Buy” rating with an average price target of $37.00.
• The company exceeded quarterly expectations, reporting $0.38 in EPS versus the $0.34 consensus and revenue of $684.92 million, up 27.3% year over year.
• CoreCivic authorized a $500 million share-repurchase program, potentially covering 15.7% of outstanding shares, while insiders sold $15.4 million of stock over the past three months.

CoreCivic, Inc. (NYSE:CXW - Get Free Report) shares hit a new 52-week high on Wednesday . The stock traded as high as $36.07 and last traded at $35.3640, with a volume of 2169312 shares. The stock had previously closed at $34.23.

Wall Street Analyst Weigh In

CXW has been the subject of several research analyst reports. UBS Group set a $35.00 price objective on CoreCivic in a research note on Tuesday, July 7th. JonesTrading reiterated a "buy" rating and set a $30.00 target price on shares of CoreCivic in a research report on Wednesday, August 5th. Weiss Ratings raised CoreCivic from a "hold (c+)" rating to a "buy (b-)" rating in a report on Wednesday, July 1st. Wall Street Zen upgraded CoreCivic from a "hold" rating to a "buy" rating in a research report on Monday, August 10th. Finally, Noble Financial reaffirmed an "outperform" rating on shares of CoreCivic in a research note on Monday, August 10th. Four analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, the stock presently has an average rating of "Buy" and an average price target of $37.00.

CoreCivic Trading Up 3.3%

The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.32 and a current ratio of 1.32. The business has a fifty day simple moving average of $32.48 and a 200 day simple moving average of $25.80. The stock has a market cap of $3.50 billion, a price-to-earnings ratio of 28.29 and a beta of 0.60.

CoreCivic (NYSE:CXW - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The real estate investment trust reported $0.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.34 by $0.04. The business had revenue of $684.92 million for the quarter, compared to the consensus estimate of $618.63 million. CoreCivic had a return on equity of 9.22% and a net margin of 5.15%.The business's revenue was up 27.3% on a year-over-year basis. During the same period in the prior year, the business earned $0.59 earnings per share. CoreCivic has set its FY 2026 guidance at 2.610-2.700 EPS. As a group, equities analysts anticipate that CoreCivic, Inc. will post 2.69 EPS for the current year.

CoreCivic declared that its board has initiated a share buyback plan on Monday, August 10th that permits the company to repurchase $500.00 million in outstanding shares. This repurchase authorization permits the real estate investment trust to purchase up to 15.7% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's management believes its shares are undervalued.

Insider Activity at CoreCivic

In other news, EVP Daren Swenson sold 20,000 shares of CoreCivic stock in a transaction dated Friday, September 11th. The shares were sold at an average price of $34.85, for a total transaction of $697,000.00. Following the completion of the sale, the executive vice president directly owned 142,666 shares in the company, valued at $4,971,910.10. The trade was a 12.30% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO David Garfinkle sold 50,000 shares of the business's stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $33.96, for a total transaction of $1,698,000.00. Following the completion of the transaction, the chief financial officer directly owned 293,353 shares of the company's stock, valued at approximately $9,962,267.88. This represents a 14.56% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 459,287 shares of company stock worth $15,431,193 over the last three months. Company insiders own 1.76% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the business. Sequoia Financial Advisors LLC acquired a new position in shares of CoreCivic during the second quarter worth about $207,000. Tidal Investments LLC lifted its position in CoreCivic by 14.4% during the 2nd quarter. Tidal Investments LLC now owns 22,445 shares of the real estate investment trust's stock worth $682,000 after acquiring an additional 2,825 shares in the last quarter. WINTON GROUP Ltd acquired a new position in CoreCivic during the 2nd quarter worth approximately $504,000. Corient Private Wealth LP acquired a new stake in CoreCivic in the second quarter valued at approximately $458,000. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in shares of CoreCivic during the second quarter valued at approximately $1,970,000. 85.13% of the stock is currently owned by institutional investors and hedge funds.

CoreCivic Company Profile

CoreCivic, Inc NYSE: CXW is a diversified government-solutions company that provides detention, corrections and residential reentry services. The company partners with federal, state and local government agencies to design, develop, own, lease and manage correctional and detention facilities in the United States.

Through its CoreCivic Safety operations, the company manages correctional and detention facilities and provides related services, including security, inmate care, transportation and rehabilitation programs.

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