CoreCivic, Inc. (NYSE:CXW) President and CEO Damon T. Hininger has sold a portion of his company shares, according to a recent filing. The transaction, which took place on August 14, 2024, involved the sale of 31,996 shares of CoreCivic's common stock at a weighted average price of $12.5 per share, resulting in a total value of approximately $399,950.
The sale was executed in multiple trades with prices ranging between $12.40 and $12.64. Following the transaction, Hininger still retains a significant holding of 788,266 shares in the company, maintaining a substantial investment in CoreCivic's future.
Investors often monitor insider transactions as they provide insights into executives' perspectives on the company's value. The details of the transaction, including the exact number of shares sold at each price point, are available upon request from the SEC, CoreCivic, or its security holders.
CoreCivic, based in Maryland, is known for its operations as a real estate investment trust, particularly in the corrections sector, and is listed under the standard industrial classification of real estate investment trusts.
In other recent news, CoreCivic, Inc. reported an increase in its second-quarter revenue for 2024 by 6% to $490.1 million, primarily driven by federal, state, and local government contracts. Despite the upcoming termination of the South Texas Family Residential Center contract, CoreCivic maintains an optimistic stance on its government business, with ongoing discussions for potential new contracts. The company's financial performance surpassed expectations, posting a GAAP net income of $0.17 per share and an adjusted EPS of $0.20 per share.
CoreCivic's federal revenue, mainly from ICE, grew by 7%, contributing $151 million. The company also saw a 5% revenue growth from state partners in the Safety and Community segments. The company also repurchased 1.3 million shares for $20 million and maintained a leverage ratio of 2.5 times net debt to adjusted EBITDA.
The closure of the South Texas facility is expected to impact the company's earnings, with no contribution anticipated in Q4. However, CoreCivic updated its 2024 financial guidance, expecting an adjusted EPS of $0.58 to $0.66, and remains positive about growth opportunities with various government agencies. These are recent developments in the company's operational and financial landscape.
InvestingPro Insights
Amid news of CoreCivic, Inc. (NYSE:CXW) CEO Damon T. Hininger's recent sale of company shares, current and prospective investors may find additional context in recent performance metrics and expert analyses. CoreCivic's market capitalization stands at approximately $1.42 billion, with a P/E ratio that has adjusted over time to 14.74, reflecting a more favorable earnings perspective than the current P/E ratio of 20.92.
InvestingPro Tips highlight that the company's management has been actively purchasing shares back, signaling confidence in the future of CoreCivic. Additionally, CoreCivic has a high shareholder yield and liquid assets that surpass short-term obligations, indicating a strong financial position. Notably, while the company's share price has seen a significant decrease over the past three months, analysts predict CoreCivic will be profitable this year, a sentiment supported by the company's profitability over the last twelve months.
InvestingPro Data reveals a revenue growth of 5.84% in the last twelve months as of Q2 2024, alongside an EBITDA growth of 11.93%, suggesting operational efficiency and profitability. However, it's important to note that CoreCivic does not pay dividends, which may influence investment strategies for those seeking regular income streams. For a comprehensive list of insights, including additional InvestingPro Tips, investors can visit InvestingPro's dedicated CoreCivic page, which currently features six additional tips for a total of seven.
These insights, particularly the share repurchase activity and the financial health metrics, may offer a deeper understanding of CoreCivic's strategic decisions and market position following the CEO's share sale. For further details and analysis, investors are encouraged to refer to the full array of InvestingPro Tips available.
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