Geo Group (NYSE:GEO) Stock Crosses Above 50-Day Moving Average - What's Next?

Key Points

• GEO shares moved above their 50-day moving average, reaching $30.17 in trading and last changing hands at about $30.00.
• The company reported quarterly EPS of $0.39, beating the $0.35 consensus, while revenue of $761.1 million fell short of expectations; revenue rose 11.5% year over year.
• Analysts’ consensus rating is Buy, with an average price target of $41.38. Recent ratings range from Strong Buy to Hold.

Geo Group Inc (The) (NYSE:GEO - Get Free Report) shares crossed above its 50 day moving average during trading on Monday. The stock has a 50 day moving average of $29.98 and traded as high as $30.17. Geo Group shares last traded at $30.0020, with a volume of 2,946,905 shares.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the company. Noble Financial reaffirmed an "outperform" rating on shares of Geo Group in a report on Monday, August 10th. Weiss Ratings reissued a "hold (c+)" rating on shares of Geo Group in a report on Friday, September 4th. Wall Street Zen downgraded Geo Group from a "buy" rating to a "hold" rating in a research report on Saturday, July 25th. Zacks Research raised Geo Group from a "hold" rating to a "strong-buy" rating in a research note on Monday, July 20th. Finally, UBS Group reaffirmed a "buy" rating on shares of Geo Group in a research note on Tuesday, October 6th. One research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat, Geo Group has an average rating of "Buy" and a consensus price target of $41.38.

Geo Group Stock Up 7.9%

The firm has a market cap of $3.97 billion, a price-to-earnings ratio of 24.00, a PEG ratio of 1.48 and a beta of 0.78. The company has a debt-to-equity ratio of 1.00, a quick ratio of 1.65 and a current ratio of 1.65. The business's 50-day moving average is $29.98 and its 200-day moving average is $24.55.

Geo Group (NYSE:GEO - Get Free Report) last announced its quarterly earnings results on Thursday, November 5th. The real estate investment trust reported $0.39 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.35 by $0.04. The firm had revenue of $761.06 million during the quarter, compared to the consensus estimate of $770.87 million. Geo Group had a net margin of 10.31% and a return on equity of 10.42%. The firm's quarterly revenue was up 11.5% on a year-over-year basis. During the same period last year, the firm posted $0.25 EPS. On average, equities analysts predict that Geo Group Inc will post 1.42 EPS for the current year.

Insider Activity at Geo Group

In other Geo Group news, VP Matthew Albence sold 11,797 shares of the business's stock in a transaction on Friday, September 11th. The stock was sold at an average price of $31.45, for a total value of $371,015.65. Following the transaction, the vice president owned 87,602 shares of the company's stock, valued at approximately $2,755,082.90. The trade was a 11.87% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Ronald A. Brack sold 7,000 shares of the business's stock in a transaction on Friday, August 21st. The stock was sold at an average price of $32.00, for a total value of $224,000.00. Following the completion of the transaction, the insider directly owned 71,614 shares in the company, valued at approximately $2,291,648. This represents a 8.90% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 28,797 shares of company stock worth $911,916 over the last three months. 4.98% of the stock is owned by company insiders.

Institutional Investors Weigh In On Geo Group

A number of hedge funds have recently added to or reduced their stakes in GEO. BlackRock Inc. acquired a new stake in Geo Group in the 2nd quarter valued at about $570,744,000. Pentwater Capital Management LP bought a new stake in shares of Geo Group during the second quarter valued at approximately $312,698,000. Cooper Creek Partners Management LLC grew its stake in shares of Geo Group by 14.2% during the first quarter. Cooper Creek Partners Management LLC now owns 5,314,006 shares of the real estate investment trust's stock valued at $89,328,000 after purchasing an additional 661,281 shares during the last quarter. Hsbc Holdings PLC acquired a new stake in shares of Geo Group in the second quarter valued at approximately $118,673,000. Finally, Assenagon Asset Management S.A. increased its holdings in shares of Geo Group by 141.8% in the third quarter. Assenagon Asset Management S.A. now owns 3,895,780 shares of the real estate investment trust's stock valued at $118,704,000 after purchasing an additional 2,284,770 shares in the last quarter. Institutional investors own 76.10% of the company's stock.

About Geo Group

The GEO Group, Inc provides government services focused on corrections, detention and community-based supervision. Its services include operating secure facilities and processing centers, managing community reentry programs, and providing electronic monitoring and supervision technology for individuals in the community.

The company serves federal, state and local government agencies, primarily in the United States. Its work also includes related services such as secure transportation and support programs for people transitioning from incarceration back into the community.

Founded in 1984 as Wackenhut Corrections Corporation, the company adopted the GEO Group name in 2003.

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