The GEO Group (NYSE:GEO) Shares Gap Down on Disappointing Earnings

The GEO Group, Inc. (NYSE:GEO)’s share price gapped down before the market opened on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $14.43, but opened at $13.66. The GEO Group shares last traded at $13.35, with a volume of 874,695 shares trading hands.

The real estate investment trust reported $0.18 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.19 by ($0.01). The business had revenue of $605.67 million for the quarter, compared to the consensus estimate of $603.84 million. The GEO Group had a net margin of 4.72% and a return on equity of 9.43%. During the same period in the previous year, the business posted $0.22 EPS.

Analysts Set New Price Targets

Separately, Wedbush lowered their price objective on The GEO Group from $22.00 to $20.00 and set an “outperform” rating for the company in a research report on Wednesday.

Insider Transactions at The GEO Group

In other The GEO Group news, CFO Shayn P. March sold 2,500 shares of the company’s stock in a transaction on Friday, April 5th. The shares were sold at an average price of $15.00, for a total transaction of $37,500.00. Following the sale, the chief financial officer now owns 67,830 shares of the company’s stock, valued at $1,017,450. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 5.00% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. ProShare Advisors LLC lifted its holdings in shares of The GEO Group by 7.4% in the 1st quarter. ProShare Advisors LLC now owns 24,326 shares of the real estate investment trust’s stock worth $343,000 after purchasing an additional 1,669 shares in the last quarter. Avantax Advisory Services Inc. grew its holdings in shares of The GEO Group by 19.0% during the first quarter. Avantax Advisory Services Inc. now owns 12,576 shares of the real estate investment trust’s stock valued at $178,000 after buying an additional 2,010 shares during the last quarter. Russell Investments Group Ltd. increased its position in shares of The GEO Group by 2.0% during the first quarter. Russell Investments Group Ltd. now owns 112,912 shares of the real estate investment trust’s stock worth $1,595,000 after acquiring an additional 2,165 shares in the last quarter. Sei Investments Co. bought a new position in The GEO Group in the 1st quarter valued at about $609,000. Finally, SG Americas Securities LLC bought a new stake in The GEO Group during the 1st quarter worth approximately $510,000. Institutional investors own 76.10% of the company’s stock.

The GEO Group Price Performance

The company has a current ratio of 1.21, a quick ratio of 1.21 and a debt-to-equity ratio of 1.34. The business has a fifty day simple moving average of $14.03 and a 200 day simple moving average of $11.78. The stock has a market capitalization of $1.73 billion, a P/E ratio of 17.93, a price-to-earnings-growth ratio of 1.45 and a beta of 0.59.

The GEO Group Company Profile

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.