The GEO Group (NYSE:GEO) Shares Gap Down After Earnings Miss

Shares of The GEO Group, Inc. (NYSE:GEO) gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $25.78, but opened at $24.22. The GEO Group shares last traded at $24.72, with a volume of 471,475 shares traded.

The real estate investment trust reported $0.13 earnings per share for the quarter, missing the consensus estimate of $0.21 by ($0.08). The company had revenue of $607.72 million during the quarter, compared to the consensus estimate of $607.45 million. The GEO Group had a net margin of 2.00% and a return on equity of 9.20%.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on the stock. Wedbush reissued an “outperform” rating on shares of The GEO Group in a research note on Tuesday, December 17th. Noble Financial lowered The GEO Group from an “outperform” rating to a “market perform” rating in a research report on Monday, November 11th. Finally, Northland Securities lifted their price target on The GEO Group from $16.00 to $37.00 and gave the company an “outperform” rating in a research report on Friday, November 8th.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. Discovery Capital Management LLC CT grew its holdings in The GEO Group by 375.2% in the fourth 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 purchasing an additional 1,452,400 shares during the period. Point72 Asset Management L.P. grew its stake in shares of The GEO Group by 202.6% in the 4th 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 buying an additional 1,422,676 shares during the last quarter. Newbrook Capital Advisors LP bought a new position in The GEO Group during the 4th quarter valued at approximately $35,738,000. BlueCrest Capital Management Ltd purchased a new position in The GEO Group during the fourth quarter valued at $34,456,000. Finally, Hodges Capital Management Inc. boosted its holdings in The GEO Group by 1,501.6% in the third quarter. Hodges Capital Management Inc. now owns 788,800 shares of the real estate investment trust’s stock worth $10,136,000 after acquiring an additional 739,550 shares in the last quarter. 76.10% of the stock is owned by hedge funds and other institutional investors.

The GEO Group Stock Performance

The company has a debt-to-equity ratio of 1.25, a current ratio of 1.10 and a quick ratio of 1.10. The business has a 50 day moving average price of $29.42 and a 200 day moving average price of $22.29. The stock has a market capitalization of $3.83 billion, a PE ratio of 94.37, a PEG ratio of 2.11 and a beta of 0.87.

The GEO Group Company Profile

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.