In a recent transaction disclosed to the Securities and Exchange Commission, Harley G. Lappin, a director at CoreCivic, Inc. (NYSE:CXW), sold a total of 6,318 shares of the company's common stock. The shares were sold at an average price of approximately $21.76, resulting in a total transaction value of $137,479. Following this sale, Lappin retains ownership of 58,911 shares directly. The transaction was executed on November 21, 2024, as part of routine trading activities.
In other recent news, CoreCivic experienced financial growth and received an upgrade from Jones Trading, shifting its stock rating from Hold to Buy. This decision is based on the anticipated political landscape changes, with Republicans expected to take control of the Executive Branch, Senate, and likely the House of Representatives. CoreCivic's third-quarter results for 2024 surpassed expectations, with a 2% revenue increase to $491.6 million, improved labor cost management, and strong occupancy gains. The company also revised its guidance upwards, reflecting a robust occupancy outlook and anticipation of enhanced profitability.
Jones Trading analysts anticipate growth opportunities for CoreCivic, particularly with the new administration's focus on addressing unauthorized migration and bolstering criminal justice enforcement. CoreCivic's largest customers, including Immigration and Customs Enforcement (ICE (NYSE:ICE)) and the US Marshals Service, are expected to receive increased appropriations following the January inauguration.
In the third quarter of 2024, CoreCivic's normalized funds from operations (FFO) per share rose by 23% to $0.43. The company also reported an improved occupancy rate of 75.2%, contributing to a 25% increase in net operating income for the Safety segment. However, the Community segment experienced a decline in net operating income due to a legal settlement. CoreCivic updated its 2024 financial guidance, expecting an adjusted EPS between $0.69 and $0.75 and normalized FFO per share between $1.59 and $1.65. These are among the recent developments within the company.
InvestingPro Insights
CoreCivic, Inc. (NYSE:CXW) has been experiencing significant market momentum, as evidenced by its strong recent performance. According to InvestingPro data, the company's stock has shown impressive returns, with a 57.74% price increase over the past month and a 62.08% gain over the last three months. This upward trend aligns with the director's decision to sell shares, potentially capitalizing on the stock's recent appreciation.
The company's financial health appears robust, with InvestingPro data indicating a market capitalization of $2.43 billion and revenue of $1.97 billion over the last twelve months as of Q3 2024. CoreCivic's profitability is also noteworthy, with a gross profit margin of 24.34% and an operating income margin of 10.32% for the same period.
InvestingPro Tips highlight that CoreCivic has a perfect Piotroski Score of 9, suggesting strong financial stability. Additionally, five analysts have revised their earnings upwards for the upcoming period, indicating positive expectations for the company's future performance. However, it's worth noting that the stock's RSI suggests it may be in overbought territory, which could explain the director's decision to sell at this time.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for CoreCivic, providing a deeper understanding of the company's financial position and market outlook.
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