Geo Group (NYSE:GEO) Downgraded by Zacks Research to “Strong Sell”

Geo Group (NYSE:GEO) was downgraded by equities research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research report issued on Tuesday,Zacks.com reports.

Several other research firms have also issued reports on GEO. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Geo Group in a research note on Friday, October 31st. Jones Trading decreased their price target on Geo Group from $50.00 to $37.00 and set a “buy” rating on the stock in a report on Friday, November 7th. Finally, Wall Street Zen lowered shares of Geo Group from a “buy” rating to a “hold” rating in a research note on Saturday, November 8th. Three equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, Geo Group presently has a consensus rating of “Hold” and a consensus price target of $35.00.

Geo Group Price Performance

GEO stock opened at $14.95 on Tuesday. Geo Group has a 52 week low of $14.27 and a 52 week high of $36.46. The firm has a market capitalization of $2.08 billion, a P/E ratio of 22.99, a price-to-earnings-growth ratio of 1.87 and a beta of 0.67. The company has a fifty day simple moving average of $18.86 and a two-hundred day simple moving average of $22.88. The company has a quick ratio of 0.90, a current ratio of 0.90 and a debt-to-equity ratio of 1.07.

Geo Group (NYSE:GEO) last announced its earnings results on Wednesday, September 28th. The real estate investment trust reported $0.41 earnings per share (EPS) for the quarter. Geo Group had a net margin of 3.69% and a return on equity of 7.26%. The firm had revenue of $565.42 million for the quarter. Geo Group has set its FY22 guidance at $2.40-2.46 EPS. Analysts anticipate that Geo Group will post 0.83 earnings per share for the current fiscal year.

Geo Group announced that its Board of Directors has authorized a stock buyback program on Wednesday, August 6th that permits the company to repurchase $300.00 million in shares. This repurchase authorization permits the real estate investment trust to purchase up to 8.2% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company’s management believes its shares are undervalued.

Institutional Investors Weigh In On Geo Group

Several hedge funds have recently modified their holdings of the business. Geneos Wealth Management Inc. raised its stake in Geo Group by 245.1% in the second quarter. Geneos Wealth Management Inc. now owns 1,101 shares of the real estate investment trust’s stock worth $26,000 after buying an additional 782 shares in the last quarter. Twin Tree Management LP bought a new position in shares of Geo Group in the 1st quarter worth $39,000. NewEdge Advisors LLC raised its position in shares of Geo Group by 81.9% in the 1st quarter. NewEdge Advisors LLC now owns 1,864 shares of the real estate investment trust’s stock worth $54,000 after acquiring an additional 839 shares in the last quarter. Covestor Ltd lifted its stake in shares of Geo Group by 19.8% during the 1st quarter. Covestor Ltd now owns 2,653 shares of the real estate investment trust’s stock worth $77,000 after purchasing an additional 438 shares during the last quarter. Finally, LSV Asset Management bought a new stake in Geo Group during the third quarter valued at about $61,000. Hedge funds and other institutional investors own 76.10% of the company’s stock.

About Geo Group

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.