The GEO Group (NYSE:GEO) Trading Down 7.5% on Disappointing Earnings

The GEO Group, Inc. (NYSE:GEO - Get Free Report) dropped 7.5% on Wednesday after the company announced weaker than expected quarterly earnings. The company traded as low as $27.62 and last traded at $28.10. Approximately 1,981,098 shares changed hands during mid-day trading, a decline of 34% from the average daily volume of 2,988,389 shares. The stock had previously closed at $30.37.

The real estate investment trust reported $0.14 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.19 by ($0.05). The GEO Group had a net margin of 2.00% and a return on equity of 9.20%. During the same quarter in the previous year, the company posted $0.14 earnings per share.

Analysts Set New Price Targets

Several research analysts recently weighed in on GEO shares. Wedbush reissued an "outperform" rating and issued a $46.00 target price on shares of The GEO Group in a research note on Tuesday, March 18th. Jones Trading reissued a "buy" rating and set a $55.00 price objective on shares of The GEO Group in a research note on Friday, March 21st. UBS Group set a $35.00 target price on shares of The GEO Group in a research note on Monday, March 24th. StockNews.com lowered The GEO Group from a "hold" rating to a "sell" rating in a research note on Thursday, May 1st. Finally, Noble Financial reaffirmed an "outperform" rating on shares of The GEO Group in a research report on Monday, March 24th. One equities research analyst has rated the stock with a sell rating and four have given a buy rating to the stock. Based on data from MarketBeat.com, The GEO Group has an average rating of "Moderate Buy" and a consensus price target of $41.00.

Insider Buying and Selling at The GEO Group

In related news, EVP Shayn P. March sold 7,500 shares of The GEO Group stock in a transaction on Thursday, March 27th. The stock was sold at an average price of $30.00, for a total value of $225,000.00. Following the transaction, the executive vice president now owns 67,469 shares in the company, valued at approximately $2,024,070. This trade represents a 10.00 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 5.30% of the stock is owned by company insiders.

Hedge Funds Weigh In On The GEO Group

Large investors have recently modified their holdings of the company. Geode Capital Management LLC lifted its position in The GEO Group by 1.2% during the fourth quarter. Geode Capital Management LLC now owns 3,051,384 shares of the real estate investment trust's stock valued at $85,398,000 after buying an additional 35,281 shares in the last quarter. Point72 Asset Management L.P. lifted its stake in shares of The GEO Group by 202.6% during the fourth quarter. Point72 Asset Management L.P. now owns 2,124,783 shares of the real estate investment trust's stock worth $59,451,000 after purchasing an additional 1,422,676 shares in the last quarter. Discovery Capital Management LLC CT boosted its holdings in The GEO Group by 375.2% in the 4th quarter. Discovery Capital Management LLC CT now owns 1,839,500 shares of the real estate investment trust's stock worth $51,469,000 after acquiring an additional 1,452,400 shares during the period. Northern Trust Corp boosted its holdings in The GEO Group by 12.6% in the 4th quarter. Northern Trust Corp now owns 1,522,360 shares of the real estate investment trust's stock worth $42,596,000 after acquiring an additional 170,248 shares during the period. Finally, Allianz Asset Management GmbH grew its position in The GEO Group by 5.8% in the fourth quarter. Allianz Asset Management GmbH now owns 1,491,209 shares of the real estate investment trust's stock valued at $41,724,000 after acquiring an additional 82,341 shares in the last quarter. 76.10% of the stock is currently owned by hedge funds and other institutional investors.

The GEO Group Trading Down 6.0 %

The business's 50-day moving average price is $28.31 and its 200 day moving average price is $27.38. The firm has a market capitalization of $4.03 billion, a price-to-earnings ratio of 98.43, a PEG ratio of 2.11 and a beta of 0.80. The company has a debt-to-equity ratio of 1.25, a current ratio of 1.10 and a quick ratio of 1.10.

About The GEO Group

The GEO Group, Inc NYSE: GEO engages in ownership, leasing, and management of secure facilities, processing centers, and community-based reentry facilities in the United States, Australia, the United Kingdom, and South Africa. The company also provides secure facility management services, including the provision of security, administrative, rehabilitation, education, and food services; reentry services, such as temporary housing, programming, employment assistance, and other services; electronic monitoring and supervision services; and transportation services; as well as designs, constructs, and finances new facilities through projects.

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