CoreCivic (NYSE:CXW) Stock Price Down 6.8% – What’s Next?

CoreCivic, Inc. (NYSE:CXW)’s stock price dropped 6.8% on Monday . The company traded as low as $18.82 and last traded at $18.70. Approximately 414,273 shares traded hands during trading, a decline of 46% from the average daily volume of 765,525 shares. The stock had previously closed at $20.07.

Wall Street Analyst Weigh In

A number of research analysts recently commented on the company. Jones Trading reaffirmed a “buy” rating and issued a $30.00 price target on shares of CoreCivic in a research note on Friday, November 7th. Wall Street Zen cut shares of CoreCivic from a “strong-buy” rating to a “buy” rating in a research report on Saturday, November 8th. Finally, Weiss Ratings reiterated a “hold (c+)” rating on shares of CoreCivic in a research report on Wednesday, October 8th. Three equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $34.00.

CoreCivic Stock Performance

The firm has a market capitalization of $1.93 billion, a price-to-earnings ratio of 18.64 and a beta of 0.69. The company has a current ratio of 1.41, a quick ratio of 1.41 and a debt-to-equity ratio of 0.70. The stock’s 50-day moving average is $18.99 and its 200-day moving average is $19.39.

CoreCivic (NYSE:CXW) last posted its earnings results on Wednesday, November 5th. The real estate investment trust reported $0.48 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.48. CoreCivic had a net margin of 5.24% and a return on equity of 7.38%. The firm had revenue of $580.44 million for the quarter, compared to analysts’ expectations of $544.38 million. During the same quarter in the previous year, the firm posted $0.43 earnings per share. The company’s revenue was up 18.1% on a year-over-year basis. CoreCivic has set its FY 2025 guidance at 1.940-2.000 EPS. On average, analysts predict that CoreCivic, Inc. will post 1.5 EPS for the current fiscal year.

CoreCivic announced that its board has authorized a stock buyback program on Monday, November 10th that permits the company to buyback $200.00 million in outstanding shares. This buyback authorization permits the real estate investment trust to repurchase up to 10.7% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s management believes its stock is undervalued.

Institutional Investors Weigh In On CoreCivic

Several hedge funds have recently added to or reduced their stakes in CXW. Advisors Asset Management Inc. acquired a new position in CoreCivic in the 2nd quarter valued at approximately $25,000. Covestor Ltd grew its stake in shares of CoreCivic by 31,516.7% in the third quarter. Covestor Ltd now owns 1,897 shares of the real estate investment trust’s stock worth $39,000 after purchasing an additional 1,891 shares during the last quarter. CWM LLC increased its holdings in CoreCivic by 80.1% in the second quarter. CWM LLC now owns 2,186 shares of the real estate investment trust’s stock valued at $46,000 after purchasing an additional 972 shares during the period. Smartleaf Asset Management LLC raised its position in 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. Finally, GAMMA Investing LLC lifted its holdings in CoreCivic by 9.9% during the 2nd quarter. GAMMA Investing LLC now owns 5,667 shares of the real estate investment trust’s stock worth $119,000 after buying an additional 511 shares during the period. 85.13% of the stock is currently owned by institutional investors and hedge funds.

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.