Geo Group (NYSE:GEO) Stock Jumps 3% – Here’s Why

Shares of Geo Group Inc (The) (NYSE:GEO) were up 3% during mid-day trading on Wednesday. The stock traded as high as $30.70 and last traded at $30.8350. 454,953 shares changed hands during trading, a decline of 79% from the average daily volume of 2,185,385 shares. The stock had previously closed at $29.94.

Key Geo Group News

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

• Positive Sentiment: GEO completed the $950 million sale of three Adelanto, California, ICE detention facilities to the U.S. Department of Homeland Security. The transaction provides substantial liquidity that can be used to reduce debt, fund operations, or return capital to shareholders. GEO Completes $950 Million Sale of Adelanto ICE Facilities
• Positive Sentiment: The company announced plans to redeem all $650 million of its senior secured notes due 2029 and amended and extended its revolving credit facility. The refinancing should improve financial flexibility and removes a sizable near-term debt maturity. The revised credit arrangements also provide flexibility for up to $1.25 billion in share repurchases, a potentially significant catalyst for earnings per share. The GEO Group Delivers Notice of Redemption
• Positive Sentiment: Northland Securities maintained an “Outperform” view and set a $40 price target. Its FY2027 EPS estimate of $1.54 is above the current consensus estimate of $1.31, indicating expectations for continued earnings growth. JonesTrading also reaffirmed its “Buy” rating with a $40 target. Northland Securities Forecasts Geo Group FY2027 Earnings
• Neutral Sentiment: The facility sale strengthens GEO’s balance sheet but also removes three operating properties from its portfolio, potentially reducing future detention-related revenue and earnings contribution. The impact will depend on how effectively management redeploys the proceeds.

Analyst Ratings Changes

Several research analysts have recently issued reports on the stock. UBS Group reiterated a “buy” rating on shares of Geo Group in a research note on Tuesday. JonesTrading reaffirmed a “buy” rating and set a $40.00 price target on shares of Geo Group in a research report on Tuesday. Northland Securities lifted their target price on Geo Group from $30.00 to $40.00 and gave the company an “outperform” rating in a research report on Friday, June 26th. Zacks Research raised Geo Group from a “hold” rating to a “strong-buy” rating in a research note on Monday, July 20th. Finally, Weiss Ratings reissued a “hold (c+)” rating on shares of Geo Group in a research note on Friday, September 4th. One investment 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’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Buy” and an average target price of $40.00.

Geo Group Stock Down 0.3%

The stock has a market cap of $3.93 billion, a PE ratio of 14.07, a price-to-earnings-growth ratio of 1.77 and a beta of 0.77. The business has a fifty day moving average of $31.24 and a 200-day moving average of $26.46. The company has a debt-to-equity ratio of 1.00, a current ratio of 1.65 and a quick ratio of 1.65.

Geo Group (NYSE:GEO) last announced its earnings results on Thursday, August 6th. The real estate investment trust reported $0.37 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.29 by $0.08. The business had revenue of $732.07 million for the quarter, compared to analysts’ expectations of $721.43 million. Geo Group had a return on equity of 10.42% and a net margin of 10.31%.The business’s revenue for the quarter was up 15.1% on a year-over-year basis. During the same quarter last year, the firm earned $0.22 EPS. Equities research analysts anticipate that Geo Group Inc will post 1.31 earnings per share for the current year.

Insider Buying and Selling at Geo Group

In other news, insider Ronald A. Brack sold 7,000 shares of the firm’s stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $32.00, for a total value of $224,000.00. Following the completion of the transaction, the insider directly owned 71,614 shares in the company, valued at $2,291,648. This trade represents a 8.90% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, VP Matthew Albence sold 11,797 shares of the firm’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 transaction, the vice president directly owned 87,602 shares of the company’s stock, valued at approximately $2,755,082.90. This trade represents a 11.87% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 28,797 shares of company stock worth $911,916. 4.98% of the stock is owned by insiders.

Institutional Trading of Geo Group

Large investors have recently made changes to their positions in the company. BlackRock Inc. acquired a new stake in shares of Geo Group in the second quarter valued at approximately $570,744,000. Pentwater Capital Management LP purchased a new stake in Geo Group in the 2nd quarter valued at approximately $312,698,000. Hsbc Holdings PLC acquired a new stake in Geo Group during the 2nd quarter valued at $118,673,000. Assenagon Asset Management S.A. acquired a new stake in Geo Group during the 2nd quarter valued at $47,605,000. Finally, Bank of New York Mellon Corp purchased a new position in Geo Group during the second quarter worth $23,825,000. 76.10% of the stock is currently owned by hedge funds and other institutional investors.

Geo Group Company Profile

The GEO Group, Inc (NYSE: GEO) is a provider of correctional, detention and community-reentry services. The company designs, finances, develops and manages secure facilities for federal, state and local government agencies, as well as certain international government clients. Its facilities house individuals in pretrial detention, immigration detention and correctional programs.

GEO also provides correctional and behavioral healthcare, transportation and security services, and electronic monitoring technologies.