In a recent transaction, David Garfinkle, the Executive Vice President and Chief Financial Officer of CoreCivic, Inc. (NYSE:CXW), sold shares of the company's common stock. The transaction involved the sale of 25,000 shares at an average price of $13.60 per share, totaling approximately $340,000.
The sale took place on August 23, 2024, and was executed in multiple trades with prices ranging from $13.48 to $13.71. The reported average sale price represents the weighted average of these trades. Following the transaction, Garfinkle's ownership in the company stands at 326,528 shares of common stock.
Investors often monitor the buying and selling activities of company insiders as these can provide insights into the company's performance and future prospects. The sale by CoreCivic's CFO could be of interest to current and potential shareholders who track such transactions for signs of executive confidence in the company's valuation and strategic direction.
CoreCivic, Inc., headquartered in Brentwood, Tennessee, operates as a real estate investment trust (REIT) and is a leader in the ownership and management of private prisons and detention centers.
The details of the transaction were disclosed in a regulatory filing with the U.S. Securities and Exchange Commission. The reporting person has undertaken to provide full information regarding the number of shares and the prices at which the transaction was effected, upon request to the SEC staff, the issuer, or a security holder of the issuer.
In other recent news, CoreCivic, Inc. reported a 6% revenue increase in its second-quarter financial results for 2024, reaching $490.1 million. This growth was primarily driven by federal, state, and local government contracts. Despite the forthcoming termination of the South Texas Family Residential Center contract, CoreCivic maintains optimism for its government business, with ongoing discussions for potential new contracts. The company's financial performance exceeded expectations, reporting a GAAP net income of $0.17 per share and an adjusted EPS of $0.20 per share.
CoreCivic also continued its share repurchase program and maintained a leverage ratio within its target range. The company's 2024 financial guidance anticipates an adjusted EPS of $0.58 to $0.66. While the closure of the South Texas facility is expected to impact earnings, CoreCivic is exploring options for the facility and remains positive about growth opportunities with various government agencies.
Despite some facilities facing labor challenges, CoreCivic has managed to overcome staffing issues from the pandemic. The company also received a notice of intent to award a new management contract from the State of Montana, demonstrating its resilience and adaptability in the face of operational changes. These recent developments indicate CoreCivic's commitment to maintaining financial strength and pursuing new business avenues.
InvestingPro Insights
As CoreCivic's Executive Vice President and Chief Financial Officer, David Garfinkle, sold a notable quantity of company shares, investors are keen on understanding the underlying financial metrics that might influence such decisions. CoreCivic (NYSE:CXW) has demonstrated a noteworthy performance in the market, with real-time data from InvestingPro showing a significant return over the last week. The company's shares have seen an 8.65% total return in this period, reflecting investor confidence and potentially aligning with the timing of Garfinkle's transaction.
From a valuation perspective, CoreCivic's adjusted P/E ratio over the last twelve months as of Q2 2024 stands at 15.8, which suggests a potentially more favorable valuation compared to the current P/E ratio of 22.52. Moreover, CoreCivic's revenue growth remained positive, with a 5.84% increase over the last twelve months as of Q2 2024, indicating a steady financial performance.
Two InvestingPro Tips that may further provide insight into CoreCivic's financial health include the company's aggressive share buyback strategy and high shareholder yield. These actions often signal a management team's belief in the company's value and future prospects. Additionally, CoreCivic's liquid assets exceed its short-term obligations, showcasing a strong liquidity position that could reassure investors about the company's ability to meet its immediate financial commitments.
For investors interested in a deeper analysis, InvestingPro offers additional tips on CoreCivic, including predictions of profitability for the current year and the company's performance over the last twelve months. To explore these insights and more, investors can visit the dedicated page for CoreCivic on InvestingPro.
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