Geo Group (NYSE:GEO) Shares Gap Down – What’s Next?

Geo Group Inc (The) (NYSE:GEO)’s stock price gapped down before the market opened on Wednesday. The stock had previously closed at $28.07, but opened at $26.15. Geo Group shares last traded at $27.1650, with a volume of 863,876 shares traded.

Analyst Upgrades and Downgrades

GEO has been the subject of a number of research analyst reports. Wall Street Zen lowered shares of Geo Group from a “buy” rating to a “hold” rating in a report on Saturday, July 25th. JonesTrading reaffirmed a “buy” rating and set a $40.00 target price on shares of Geo Group in a research report on Tuesday, October 6th. UBS Group reaffirmed a “buy” rating on shares of Geo Group in a research report on Tuesday, October 6th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Geo Group in a research note on Friday, September 4th. Finally, Zacks Research upgraded Geo Group from a “hold” rating to a “strong-buy” rating in a report on Monday, July 20th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat.com, Geo Group currently has an average rating of “Buy” and a consensus price target of $40.00.

Geo Group Price Performance

The company has a market cap of $3.65 billion, a PE ratio of 13.09, a PEG ratio of 1.50 and a beta of 0.78. The company has a debt-to-equity ratio of 1.00, a current ratio of 1.65 and a quick ratio of 1.65. The stock’s 50-day moving average is $30.37 and its 200 day moving average is $24.35.

Geo Group (NYSE:GEO) last issued its quarterly earnings results on Thursday, August 6th. The real estate investment trust reported $0.37 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.29 by $0.08. The business had revenue of $732.07 million for the quarter, compared to analyst estimates of $721.43 million. Geo Group had a net margin of 10.31% and a return on equity of 10.42%. Geo Group’s revenue for the quarter was up 15.1% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.22 EPS. On average, equities analysts anticipate that Geo Group Inc will post 1.33 earnings per share for the current fiscal year.

Insider Transactions at Geo Group

In other news, VP Matthew Albence sold 11,797 shares of the firm’s stock in a transaction that occurred on Friday, September 11th. The shares were sold at an average price of $31.45, for a total transaction of $371,015.65. Following the sale, the vice president owned 87,602 shares of the company’s stock, valued at $2,755,082.90. This trade represents a 11.87% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Ronald A. Brack sold 7,000 shares of Geo Group stock in a transaction on Friday, August 21st. The shares were sold at an average price of $32.00, for a total transaction of $224,000.00. Following the completion of the transaction, the insider directly owned 71,614 shares of the company’s stock, valued at $2,291,648. The trade was a 8.90% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 28,797 shares of company stock worth $911,916 in the last 90 days. Company insiders own 4.98% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Bessemer Group Inc. raised its holdings in shares of Geo Group by 111.9% during the 1st quarter. Bessemer Group Inc. now owns 1,723 shares of the real estate investment trust’s stock worth $29,000 after acquiring an additional 910 shares during the period. Parallel Advisors LLC raised its holdings in Geo Group by 165.5% in the third quarter. Parallel Advisors LLC now owns 1,017 shares of the real estate investment trust’s stock valued at $31,000 after acquiring an additional 634 shares in the last quarter. Fortitude Family Office LLC acquired a new position in shares of Geo Group during the 3rd quarter worth about $32,000. Global Retirement Partners LLC purchased a new stake in shares of Geo Group during the 2nd quarter worth approximately $34,000. Finally, Public Employees Retirement System of Ohio boosted its stake in Geo Group by 22.7% in the first quarter. Public Employees Retirement System of Ohio now owns 3,866 shares of the real estate investment trust’s stock valued at $65,000 after acquiring an additional 715 shares in the last quarter. 76.10% of the stock is currently owned by institutional investors and hedge funds.

Geo Group Company Profile

The GEO Group, Inc (NYSE: GEO) is a provider of correctional, detention and community-based services. The company develops and operates secure facilities for government agencies, offering services that can include facility management, housing, transportation, food services, medical care, education and rehabilitation programs.

GEO also provides reentry and community-based services designed to support individuals transitioning from incarceration. Through its electronic monitoring and supervision offerings, the company assists government and law-enforcement agencies with alternatives to secure detention, including GPS monitoring, case management and other post-release support services.

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