Geo Group (NYSE:GEO) Stock Price Up 3% – Still a Buy?

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

Trending Headlines about Geo Group

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.

Analysts Set New Price Targets

Several research analysts recently issued reports on the company. UBS Group reaffirmed a “buy” rating on shares of Geo Group in a research report on Tuesday. Zacks Research raised shares of Geo Group from a “hold” rating to a “strong-buy” rating in a research note on Monday, July 20th. Wall Street Zen cut Geo Group from a “buy” rating to a “hold” rating in a research note on Saturday, July 25th. Weiss Ratings reissued a “hold (c+)” rating on shares of Geo Group in a research report on Friday, September 4th. Finally, Northland Securities increased their price target on Geo Group from $30.00 to $40.00 and gave the company an “outperform” rating in a research report on Friday, June 26th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Buy” and an average price target of $40.00.

Geo Group Stock Down 0.3%

The firm has a market capitalization of $3.93 billion, a P/E ratio of 14.07, a PEG ratio of 1.77 and a beta of 0.77. The company has a debt-to-equity ratio of 1.00, a quick ratio of 1.65 and a current ratio of 1.65. The stock has a 50 day moving average of $31.24 and a 200-day moving average of $26.46.

Geo Group (NYSE:GEO) last released its quarterly earnings data on Thursday, August 6th. The real estate investment trust reported $0.37 earnings per share for the quarter, beating analysts’ consensus estimates of $0.29 by $0.08. Geo Group had a net margin of 10.31% and a return on equity of 10.42%. The business had revenue of $732.07 million during the quarter, compared to analyst estimates of $721.43 million. During the same period in the previous year, the business earned $0.22 EPS. Geo Group’s revenue was up 15.1% compared to the same quarter last year. Research analysts predict that Geo Group Inc will post 1.31 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Geo Group news, VP Matthew Albence sold 11,797 shares of the firm’s stock in a transaction dated Friday, September 11th. The stock was sold at an average price of $31.45, for a total transaction of $371,015.65. Following the sale, the vice president owned 87,602 shares in the company, valued at $2,755,082.90. This trade represents a 11.87% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Ronald A. Brack sold 7,000 shares of the company’s stock in a transaction that occurred on 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 sale, the insider directly owned 71,614 shares of the company’s stock, valued at approximately $2,291,648. This represents a 8.90% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 28,797 shares of company stock worth $911,916 in the last three months. Insiders own 4.98% of the company’s stock.

Institutional Trading of Geo Group

A number of institutional investors have recently modified their holdings of GEO. Tidal Investments LLC bought a new stake in Geo Group in the second quarter valued at $644,000. WINTON GROUP Ltd purchased a new position in shares of Geo Group during the second quarter valued at about $322,000. Engineers Gate Manager LP purchased a new position in shares of Geo Group during the second quarter valued at about $478,000. Corient Private Wealth LP bought a new position in Geo Group in the second quarter worth about $250,000. Finally, AXQ Capital LP bought a new stake in Geo Group during the 2nd quarter valued at approximately $428,000. 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.