CoreCivic (NYSE:CXW) Shares Break Above 200-Day Moving Average - Here's What Happened

Key Points

• CoreCivic shares broke above their 200-day moving average, reaching $35.02 before last trading near $33.68. The stock’s 200-day average was $27.28.
• Analysts maintain a positive outlook, with a consensus “Buy” rating and an average price target of $39.40, above the recent trading price.
• The company approved a $500 million share-repurchase program, allowing it to buy back up to 15.7% of outstanding shares, while institutional investors own 85.13% of the stock.

CoreCivic, Inc. (NYSE:CXW - Get Free Report)'s share price passed above its 200-day moving average during trading on Monday. The stock has a 200-day moving average of $27.28 and traded as high as $35.02. CoreCivic shares last traded at $33.6810, with a volume of 2,918,209 shares changing hands.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on the stock. JonesTrading reissued a "buy" rating and set a $42.00 target price on shares of CoreCivic in a research note on Friday, September 18th. Wall Street Zen upgraded shares of CoreCivic from a "hold" rating to a "buy" rating in a research note on Monday, August 10th. UBS Group set a $35.00 price target on shares of CoreCivic in a research note on Tuesday, July 7th. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of CoreCivic in a research note on Monday, September 28th. Finally, Northland Securities set a $40.00 price target on CoreCivic in a report on Friday, June 26th. Four analysts have rated the stock with a Buy rating, According to MarketBeat.com, the company has a consensus rating of "Buy" and an average target price of $39.40.

CoreCivic Price Performance

The firm has a market capitalization of $3.33 billion, a PE ratio of 26.94 and a beta of 0.57. 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 stock has a fifty day moving average price of $33.00 and a 200-day moving average price of $27.28.

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 for the quarter, topping analysts' consensus estimates of $0.34 by $0.04. CoreCivic had a return on equity of 9.22% and a net margin of 5.15%.The firm had revenue of $684.92 million during the quarter, compared to analysts' expectations of $618.63 million. During the same period in the prior year, the business posted $0.59 EPS. The firm's quarterly revenue was up 27.3% on a year-over-year basis. CoreCivic has set its FY 2026 guidance at 2.610-2.700 EPS. Sell-side analysts forecast that CoreCivic, Inc. will post 2.69 EPS for the current fiscal year.

CoreCivic announced that its board has approved a stock buyback plan on Monday, August 10th that permits the company to buyback $500.00 million in shares. This buyback authorization permits the real estate investment trust to purchase up to 15.7% of its shares through open market purchases. Shares buyback plans are typically an indication that the company's board believes its stock is undervalued.

Insiders Place Their Bets

In other news, EVP Daren Swenson sold 20,000 shares of the firm's stock in a transaction dated Friday, September 11th. The shares were sold at an average price of $34.85, for a total value of $697,000.00. Following the sale, the executive vice president directly owned 142,666 shares in the company, valued at approximately $4,971,910.10. This trade represents a 12.30% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Mark A. Emkes sold 30,000 shares of CoreCivic stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $34.25, for a total transaction of $1,027,500.00. Following the completion of the transaction, the director directly owned 141,274 shares in the company, valued at approximately $4,838,634.50. The trade was a 17.52% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 459,287 shares of company stock worth $15,431,193. Insiders own 1.76% of the company's stock.

Institutional Investors Weigh In On CoreCivic

Several institutional investors have recently bought and sold shares of CXW. BlackRock Inc. acquired a new position in shares of CoreCivic during the second quarter worth $480,557,000. River Road Asset Management LLC boosted its position in shares of CoreCivic by 3.3% in the 4th quarter. River Road Asset Management LLC now owns 8,978,240 shares of the real estate investment trust's stock worth $171,574,000 after purchasing an additional 287,108 shares in the last quarter. Lee Danner & Bass Inc. grew its stake in CoreCivic by 273.1% during the 1st quarter. Lee Danner & Bass Inc. now owns 2,173,498 shares of the real estate investment trust's stock worth $41,101,000 after buying an additional 1,590,940 shares during the last quarter. Rubric Capital Management LP grew its stake in 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 buying an additional 97,770 shares during the last quarter. Finally, Park West Asset Management LLC acquired a new position in CoreCivic during the 2nd quarter valued at about $27,310,000. 85.13% of the stock is currently owned by institutional investors and hedge funds.

About CoreCivic

CoreCivic, Inc is a diversified government-services company that develops, owns and manages correctional and detention facilities in the United States. Formerly known as Corrections Corporation of America, the company adopted the CoreCivic name in 2016. It works with federal, state and local government agencies to provide secure facilities and related services.

CoreCivic's operations include the management of correctional and detention facilities, the operation of residential reentry centers and other community corrections programs, and the provision of transportation and monitoring services.

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