CoreCivic (NYSE:CXW) Stock Price Crosses Above Fifty Day Moving Average – Here’s Why

CoreCivic, Inc. (NYSE:CXW) shares passed above its 50 day moving average during trading on Wednesday. The stock has a 50 day moving average of $32.21 and traded as high as $33.20. CoreCivic shares last traded at $32.5810, with a volume of 1,820,760 shares trading hands.

Analyst Ratings Changes

Several research firms have recently weighed in on CXW. Benchmark boosted their price objective on shares of CoreCivic from $41.00 to $45.00 and gave the stock a “buy” rating in a research note on Friday, August 7th. Weiss Ratings downgraded shares of CoreCivic from a “buy (b)” rating to a “buy (b-)” rating in a research note on Wednesday, October 28th. JonesTrading reiterated a “buy” rating and set a $42.00 price target on shares of CoreCivic in a report on Friday, September 18th. Wall Street Zen downgraded CoreCivic from a “buy” rating to a “hold” rating in a research report on Saturday, October 24th. Finally, TD Cowen restated a “hold” rating on shares of CoreCivic in a research note on Friday, October 23rd. Four analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $39.40.

CoreCivic Stock Up 3.1%

The firm has a market cap of $2.82 billion, a P/E ratio of 2.10 and a beta of 0.63. The company has a debt-to-equity ratio of 0.27, a quick ratio of 2.41 and a current ratio of 2.41. The firm’s fifty day moving average is $32.21 and its 200 day moving average is $26.15.

CoreCivic (NYSE:CXW) last announced its quarterly earnings results on Wednesday, November 4th. The real estate investment trust reported $0.49 EPS for the quarter, missing analysts’ consensus estimates of $15.14 by ($14.65). The company had revenue of $744.09 million during the quarter, compared to analyst estimates of $697.55 million. CoreCivic had a net margin of 54.60% and a return on equity of 9.27%. The firm’s quarterly revenue was up 28.2% on a year-over-year basis. During the same quarter last year, the company posted $0.48 EPS. As a group, equities research analysts anticipate that CoreCivic, Inc. will post 2.81 earnings per share for the current fiscal year.

CoreCivic declared that its board has approved a stock repurchase plan on Monday, August 10th that permits the company to buy back $500 million in outstanding shares. This repurchase authorization permits the real estate investment trust to purchase up to 15.7% of its shares through open market purchases. Share repurchase plans are often a sign that the company’s leadership believes its shares are undervalued.

Insider Buying and Selling

In related news, Director Mark A. Emkes sold 30,000 shares of the business’s stock in a transaction on Monday, August 24th. The stock was sold at an average price of $34.25, for a total value of $1,027,500.00. Following the completion of the sale, the director directly owned 141,274 shares in the company, valued at $4,838,634.50. The trade was a 17.52% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CFO David Garfinkle sold 50,000 shares of the company’s stock in a transaction on Friday, August 21st. The shares were sold at an average price of $33.96, for a total value of $1,698,000.00. Following the completion of the transaction, the chief financial officer directly owned 293,353 shares in the company, valued at approximately $9,962,267.88. This represents a 14.56% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 297,595 shares of company stock valued at $10,041,287 in the last ninety days. 1.76% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. Farther Finance Advisors LLC lifted its holdings in shares of CoreCivic by 48.4% during the third quarter. Farther Finance Advisors LLC now owns 1,340 shares of the real estate investment trust’s stock worth $43,000 after buying an additional 437 shares in the last quarter. USA Financial Formulas bought a new position in CoreCivic during the third quarter worth about $48,000. Persistent Asset Partners Ltd bought a new position in CoreCivic during the second quarter worth about $52,000. Global Retirement Partners LLC increased its position in CoreCivic by 338.9% during the third quarter. Global Retirement Partners LLC now owns 2,164 shares of the real estate investment trust’s stock worth $70,000 after acquiring an additional 1,671 shares during the period. Finally, Public Employees Retirement System of Ohio acquired a new stake in CoreCivic in the 2nd quarter worth about $120,000. Institutional investors own 85.13% of the company’s stock.

About CoreCivic

CoreCivic, Inc. is a U.S. corrections and government-services company that operates correctional and detention facilities under contracts with federal, state and local government agencies. Its services include facility management and related support for people in custody. The company also provides residential reentry services, including transitional housing and programs intended to help people return to their communities. Through its real estate business, CoreCivic owns and develops correctional and detention properties that government agencies may lease.