CoreCivic (NYSE:CXW) Shares Up 5.5% - Should You Buy?

Key Points

• CoreCivic shares rose 5.5% to about $31.46 in Tuesday’s trading, though trading volume was 77% below its average.
• Analysts’ average 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 increased 28.2% year over year to $744.09 million, above analysts’ estimates. The company also authorized a $500 million share-repurchase plan, covering up to 15.7% of its shares.

CoreCivic, Inc. (NYSE:CXW - Get Free Report)'s share price traded up 5.5% during mid-day trading on Tuesday. The company traded as high as $31.62 and last traded at $31.4590. 324,316 shares traded hands during trading, a decline of 77% from the average daily volume of 1,418,807 shares. The stock had previously closed at $29.83.

Analyst Ratings Changes

Several brokerages have issued reports on CXW. JonesTrading reissued a "buy" rating and issued a $42.00 price objective on shares of CoreCivic in a research note on Friday, September 18th. Noble Financial reaffirmed an "outperform" rating on shares of CoreCivic in a research report on Monday, August 10th. Benchmark raised their price target 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. Wall Street Zen lowered CoreCivic from a "buy" rating to a "hold" rating in a research note on Saturday, October 24th. Finally, TD Cowen restated a "hold" rating on shares of CoreCivic in a research report on Friday, October 23rd. Four investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat, CoreCivic currently has an average rating of "Moderate Buy" and an average target price of $39.40.

CoreCivic Stock Performance

The stock has a fifty day moving average of $32.24 and a 200-day moving average of $26.03. The stock has a market capitalization of $3.09 billion, a PE ratio of 2.01 and a beta of 0.63. The company has a quick ratio of 1.32, a current ratio of 1.32 and a debt-to-equity ratio of 0.86.

CoreCivic (NYSE:CXW - Get Free Report) last posted its quarterly earnings results 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 firm had revenue of $744.09 million for the quarter, compared to analyst estimates of $697.55 million. CoreCivic had a return on equity of 10.69% and a net margin of 54.60%. The company's revenue was up 28.2% on a year-over-year basis. During the same quarter last year, the firm earned $0.48 EPS. Equities analysts anticipate that CoreCivic, Inc. will post 2.82 earnings per share for the current fiscal year.

CoreCivic announced that its Board of Directors has authorized a share repurchase plan on Monday, August 10th that authorizes the company to repurchase $500 million in shares. This repurchase authorization authorizes the real estate investment trust to buy up to 15.7% of its shares through open market purchases. Share repurchase plans are usually a sign that the company's board of directors believes its stock is undervalued.

Insider Activity

In other news, EVP Anthony L. Grande sold 29,199 shares of the firm's stock in a transaction on Monday, August 17th. The shares were sold at an average price of $33.61, for a total value of $981,378.39. Following the completion of the sale, the executive vice president owned 164,782 shares in the company, valued at approximately $5,538,323.02. This trade represents a 15.05% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director John R. Prann, 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 transaction, the director owned 30,396 shares in the company, valued at $1,019,481.84. The trade was a 56.82% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 459,287 shares of company stock worth $15,431,193 over the last ninety days. 1.76% of the stock is owned by corporate insiders.

Institutional Trading of CoreCivic

Several hedge funds and other institutional investors have recently added to or reduced their stakes in CXW. Farther Finance Advisors LLC lifted its position in CoreCivic by 48.4% during the third quarter. Farther Finance Advisors LLC now owns 1,340 shares of the real estate investment trust's stock valued at $43,000 after buying an additional 437 shares in the last quarter. USA Financial Formulas bought a new position in shares of CoreCivic in the 3rd quarter worth about $48,000. Persistent Asset Partners Ltd acquired a new stake in CoreCivic during the second quarter worth about $52,000. Fulcrum Asset Management LLP acquired a new position in shares of CoreCivic during the third quarter valued at $121,000. Finally, Public Employees Retirement System of Ohio acquired a new stake in shares of CoreCivic in the 2nd quarter worth about $120,000. Hedge funds and other institutional investors own 85.13% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.