Geo Group (NYSE:GEO) Shares Gap Down – Should You Sell?

Geo Group Inc (The) (NYSE:GEO)’s share 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 changing hands.

Trending Headlines about Geo Group

Here are the key news stories impacting Geo Group this week:

• Positive Sentiment: GEO reported Q3 adjusted EPS of $0.39, beating the $0.35 consensus and rising from $0.25 a year earlier. Revenue increased 11.5% year over year. Read More.
• Positive Sentiment: The company forecast Q4 revenue of $777 million–$827 million and adjusted EBITDA of $149 million–$154 million, citing expanding ICE activations. The outlook may reinforce expectations for continued contract-driven growth. Read More.
• Positive Sentiment: JonesTrading raised its price target to $42.75 from $40 and maintained a Buy rating, signaling stronger analyst optimism. Read More.
• Negative Sentiment: Q3 revenue of $761.06 million missed the roughly $770.87 million analyst estimate, tempering the earnings-per-share beat. Read More.
• Negative Sentiment: Recent coverage highlighted political risk for private prison operators if a change in political control leads to reduced support for or changes to ICE-related contracts. Read More.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on the company. Zacks Research upgraded Geo Group from a “hold” rating to a “strong-buy” rating in a report on Monday, July 20th. Wall Street Zen lowered Geo Group from a “buy” rating to a “hold” rating in a research report on Saturday, July 25th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Geo Group in a research report on Friday, September 4th. UBS Group reaffirmed a “buy” rating on shares of Geo Group in a research note on Tuesday, October 6th. Finally, JonesTrading raised their price target on Geo Group from $40.00 to $42.75 and gave the stock a “buy” rating in a research note on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of “Buy” and a consensus price target of $41.38.

Geo Group Price Performance

The company’s 50-day simple moving average is $30.12 and its 200 day simple moving average is $24.44. The company has a quick ratio of 1.65, a current ratio of 1.65 and a debt-to-equity ratio of 1.00. The stock has a market capitalization of $3.42 billion, a price-to-earnings ratio of 12.20, a P/E/G ratio of 1.48 and a beta of 0.78.

Geo Group (NYSE:GEO) last announced its quarterly earnings results on Thursday, November 5th. The real estate investment trust reported $0.39 earnings per share for the quarter, topping analysts’ consensus estimates of $0.35 by $0.04. The company had revenue of $761.06 million during the quarter, compared to analysts’ expectations of $770.87 million. Geo Group had a return on equity of 10.42% and a net margin of 10.31%. The business’s quarterly revenue was up 11.5% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.25 earnings per share. Equities research analysts forecast that Geo Group Inc will post 1.33 EPS for the current year.

Insider Activity at Geo Group

In other news, insider Ronald A. Brack sold 7,000 shares of Geo Group stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $32.00, for a total value of $224,000.00. Following the transaction, the insider owned 71,614 shares of the company’s stock, valued at $2,291,648. This trade represents a 8.90% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, 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 transaction of $371,015.65. Following the completion of the sale, the vice president owned 87,602 shares of the company’s stock, valued at $2,755,082.90. The trade was a 11.87% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 28,797 shares of company stock worth $911,916. Corporate insiders own 4.98% of the company’s stock.

Institutional Investors Weigh In On Geo Group

Hedge funds and other institutional investors have recently made changes to their positions in the business. BlackRock Inc. bought a new position in shares of Geo Group during the 2nd quarter worth 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. Assenagon Asset Management S.A. raised its stake 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. Hsbc Holdings PLC acquired a new position in shares of Geo Group in the second quarter valued at $118,673,000. Finally, Cooper Creek Partners Management LLC raised its stake in shares of Geo Group by 14.2% in 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 in the last quarter. 76.10% of the stock is owned by institutional investors and hedge funds.

About Geo Group

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.