CoreCivic (NYSE:CXW) Share Price Crosses Above Fifty Day Moving Average - What's Next?

Key Points

• CoreCivic shares rose above their 50-day moving average, trading as high as $33.20 and last at $32.58, versus a 50-day average of $32.21.
• Analysts’ consensus rating is “Moderate Buy”, with an average price target of $39.40; four analysts rate the stock Buy and one rates it Hold.
• Quarterly revenue reached $744.1 million, up 28.2% year over year and above estimates, while EPS was reported at $0.49. The company also authorized up to $500 million in share repurchases.

CoreCivic, Inc. (NYSE:CXW - Get Free Report) crossed above its fifty day moving average during trading on Wednesday. The stock has a fifty day moving average of $32.21 and traded as high as $33.20. CoreCivic shares last traded at $32.5810, with a volume of 1,820,760 shares changing hands.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on CXW shares. TD Cowen reaffirmed a "hold" rating on shares of CoreCivic in a research note on Friday, October 23rd. Noble Financial reissued an "outperform" rating on shares of CoreCivic in a research report on Monday, August 10th. Benchmark upped their price objective on shares of CoreCivic from $41.00 to $45.00 and gave the company a "buy" rating in a research report on Friday, August 7th. Weiss Ratings lowered CoreCivic from a "buy (b)" rating to a "buy (b-)" rating in a report on Wednesday, October 28th. Finally, Wall Street Zen downgraded CoreCivic from a "buy" rating to a "hold" rating in a report on Saturday, October 24th. Four analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, CoreCivic presently has a consensus rating of "Moderate Buy" and an average target price of $39.40.

CoreCivic Price Performance

The company's 50-day moving average price is $32.21 and its 200-day moving average price is $26.15. The company has a debt-to-equity ratio of 0.27, a current ratio of 2.41 and a quick ratio of 2.41. The company has a market cap of $2.82 billion, a P/E ratio of 2.10 and a beta of 0.63.

CoreCivic (NYSE:CXW - Get Free Report) last posted its quarterly earnings data on Wednesday, November 4th. The real estate investment trust reported $0.49 EPS for the quarter, missing the consensus estimate of $15.14 by ($14.65). The company had revenue of $744.09 million during the quarter, compared to the consensus estimate of $697.55 million. CoreCivic had a net margin of 54.60% and a return on equity of 9.27%. The company's revenue was up 28.2% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.48 earnings per share. As a group, sell-side analysts predict that CoreCivic, Inc. will post 2.81 earnings per share for the current fiscal year.

CoreCivic announced that its Board of Directors has approved a share repurchase plan on Monday, August 10th that permits the company to buy back $500 million in shares. This repurchase authorization permits the real estate investment trust to buy up to 15.7% of its shares through open market purchases. Stock repurchase plans are usually an indication that the company's management believes its stock is undervalued.

Insider Activity at CoreCivic

In other news, Director R Jr sold 40,000 shares of the company's stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $33.54, for a total transaction of $1,341,600.00. Following the completion of the transaction, the director directly owned 30,396 shares of the company's stock, valued at $1,019,481.84. This represents a 56.82% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Daren Swenson sold 20,000 shares of the stock in a transaction dated Friday, September 11th. The stock was sold at an average price of $34.85, for a total value of $697,000.00. Following the transaction, the executive vice president owned 142,666 shares of the company's stock, valued at approximately $4,971,910.10. The trade was a 12.30% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 297,595 shares of company stock valued at $10,041,287 over the last ninety days. Company insiders own 1.76% of the company's stock.

Hedge Funds Weigh In On CoreCivic

Large investors have recently modified their holdings of the business. BlackRock Inc. bought a new position in CoreCivic in the second quarter valued at approximately $480,557,000. Assenagon Asset Management S.A. acquired a new position in shares of CoreCivic during the 3rd quarter worth approximately $93,789,000. Rubric Capital Management LP raised its stake in shares of CoreCivic by 5.0% during the 1st quarter. Rubric Capital Management LP now owns 2,059,216 shares of the real estate investment trust's stock worth $38,940,000 after purchasing an additional 97,770 shares in the last quarter. Park West Asset Management LLC bought a new stake in shares of CoreCivic during the 2nd quarter worth approximately $27,310,000. Finally, JB Capital Partners LP acquired a new stake in shares of CoreCivic in the 2nd quarter valued at approximately $25,677,480. 85.13% of the stock is currently owned by institutional investors and hedge funds.

About CoreCivic

CoreCivic, Inc. is a U.S. corrections and government-services company that operates correctional and detention facilities under contracts with federal, state and local government agencies. Its services include facility management and related support for people in custody. The company also provides residential reentry services, including transitional housing and programs intended to help people return to their communities. Through its real estate business, CoreCivic owns and develops correctional and detention properties that government agencies may lease.

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