CoreCivic (NYSE:CXW) Shares Gap Up on Earnings Beat

CoreCivic, Inc. (NYSE:CXW) shares gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $18.50, but opened at $19.45. CoreCivic shares last traded at $16.3950, with a volume of 532,164 shares trading hands.

The real estate investment trust reported $0.52 EPS for the quarter, beating analysts’ consensus estimates of $0.43 by $0.09. The business had revenue of $603.95 million during the quarter, compared to the consensus estimate of $585.12 million. CoreCivic had a return on equity of 7.38% and a net margin of 5.24%.The business’s revenue for the quarter was up 26.0% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.39 earnings per share.

CoreCivic declared that its Board of Directors has authorized a stock repurchase plan on Monday, November 10th that permits the company to repurchase $200.00 million in shares. This repurchase authorization permits the real estate investment trust to repurchase up to 10.7% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s management believes its shares are undervalued.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on CXW. Jones Trading reissued a “buy” rating and set a $30.00 price objective on shares of CoreCivic in a report on Friday, November 7th. Wall Street Zen downgraded CoreCivic from a “strong-buy” rating to a “buy” rating in a report on Saturday, November 8th. Two research analysts have rated the stock with a Buy rating and one has assigned 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 $34.00.

Institutional Investors Weigh In On CoreCivic

Hedge funds and other institutional investors have recently made changes to their positions in the company. Smartleaf Asset Management LLC increased its stake in shares of CoreCivic by 33.0% during the 2nd quarter. Smartleaf Asset Management LLC now owns 2,829 shares of the real estate investment trust’s stock worth $59,000 after purchasing an additional 702 shares during the last quarter. Texas Permanent School Fund Corp increased its holdings in shares of CoreCivic by 0.6% during the 2nd quarter. Texas Permanent School Fund Corp now owns 121,147 shares of the real estate investment trust’s stock valued at $2,553,000 after acquiring an additional 709 shares during the last quarter. CWM LLC raised its stake in shares of CoreCivic by 80.1% in the 2nd quarter. CWM LLC now owns 2,186 shares of the real estate investment trust’s stock valued at $46,000 after acquiring an additional 972 shares in the last quarter. Lazard Asset Management LLC grew its holdings in CoreCivic by 10.4% during the second quarter. Lazard Asset Management LLC now owns 10,595 shares of the real estate investment trust’s stock valued at $223,000 after purchasing an additional 1,002 shares during the last quarter. Finally, Police & Firemen s Retirement System of New Jersey raised its position in shares of CoreCivic by 4.8% in the second quarter. Police & Firemen s Retirement System of New Jersey now owns 24,679 shares of the real estate investment trust’s stock valued at $520,000 after purchasing an additional 1,121 shares during the period. 85.13% of the stock is owned by hedge funds and other institutional investors.

CoreCivic Price Performance

The company has a debt-to-equity ratio of 0.70, a current ratio of 1.41 and a quick ratio of 1.41. The stock’s 50 day moving average price is $19.18 and its two-hundred day moving average price is $19.24. The firm has a market capitalization of $1.73 billion, a price-to-earnings ratio of 16.75 and a beta of 0.71.

CoreCivic Company Profile

CoreCivic, Inc (NYSE: CXW) is a real estate investment trust specializing in the ownership, management and operation of private correctional and detention facilities in the United States. The company enters into contracts with federal, state and local government agencies to house inmates and detainees in facilities that it owns or operates on a concession basis. In addition to traditional prison operations, CoreCivic provides specialized services such as community-based reentry programs, electronic monitoring and rehabilitation initiatives aimed at reducing recidivism.

CoreCivic’s portfolio encompasses a mix of adult correctional facilities, immigration detention centers, residential reentry centers and other community-based programs.