CoreCivic (NYSE:CXW) Trading Down 10.1% – Here’s What Happened

Shares of CoreCivic, Inc. (NYSE:CXW) were down 10.1% during trading on Friday . The company traded as low as $16.90 and last traded at $16.7790. Approximately 210,316 shares traded hands during mid-day trading, a decline of 78% from the average daily volume of 946,905 shares. The stock had previously closed at $18.66.

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on CXW. JonesTrading restated a “buy” rating and set a $30.00 price objective on shares of CoreCivic in a research note on Friday, February 13th. Wall Street Zen upgraded shares of CoreCivic from a “hold” rating to a “buy” rating in a research report on Saturday, February 14th. Two research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat.com, CoreCivic has an average rating of “Moderate Buy” and a consensus target price of $34.00.

CoreCivic Trading Down 11.1%

The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.41 and a current ratio of 1.66. The company has a 50-day simple moving average of $19.16 and a 200 day simple moving average of $19.19. The company has a market capitalization of $1.74 billion, a P/E ratio of 15.43 and a beta of 0.71.

CoreCivic (NYSE:CXW) last announced its quarterly earnings data on Wednesday, February 11th. The real estate investment trust reported $0.27 EPS for the quarter, missing analysts’ consensus estimates of $0.43 by ($0.16). CoreCivic had a net margin of 5.27% and a return on equity of 8.17%. The company had revenue of $603.95 million for the quarter, compared to analyst estimates of $585.12 million. During the same period in the prior year, the company posted $0.39 EPS. The firm’s quarterly revenue was up 26.0% on a year-over-year basis. Sell-side analysts expect that CoreCivic, Inc. will post 1.5 earnings per share for the current year.

CoreCivic announced that its Board of Directors 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 purchase up to 10.7% of its shares through open market purchases. Shares buyback programs are usually a sign that the company’s management believes its shares are undervalued.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Advisors Asset Management Inc. acquired a new position in CoreCivic during the 2nd quarter worth $25,000. NBC Securities Inc. increased its position in CoreCivic by 533.9% in the fourth quarter. NBC Securities Inc. now owns 1,458 shares of the real estate investment trust’s stock worth $28,000 after purchasing an additional 1,228 shares during the period. Covestor Ltd raised its holdings in CoreCivic by 31,516.7% during the 3rd 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 lifted its position in CoreCivic by 80.1% during the 2nd 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. Finally, Leonteq Securities AG bought a new position in shares of CoreCivic in the 4th quarter valued at about $57,000. 85.13% of the stock is owned by institutional investors.

About CoreCivic

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.