Devin Murphy, a director at CoreCivic Inc. (NYSE:CXW), recently sold a portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Murphy sold 15,468 shares of CoreCivic's common stock on November 13, 2024. The shares were sold at an average price of $22.50 each, amounting to a total transaction value of $348,030. Following this sale, Murphy retains ownership of 55,475 shares in the company.
In other recent news, CoreCivic has been making headlines with its recent financial performance and future prospects. The company's third-quarter results for 2024 exceeded expectations, driven by a 2% revenue increase to $491.6 million, attributed to state revenue growth and improved occupancy rates. Its normalized funds from operations (FFO) per share also increased by 23% to $0.43, despite higher general and administrative costs. These developments are part of recent events that have unfolded within the company.
Jones Trading upgraded CoreCivic's stock from Hold to Buy, reflecting the anticipated growth opportunities for the company in the coming years. This decision was influenced by the recent political shift and the new administration's focus on addressing unauthorized migration and bolstering criminal justice enforcement. CoreCivic's largest customers, including Immigration and Customs Enforcement (ICE) and the US Marshals Service, are expected to receive increased appropriations, which could lead to potential government contracts and funding increases for the company.
CoreCivic also revised its 2024 financial guidance upward, expecting an adjusted EPS between $0.69 and $0.75 and normalized FFO per share between $1.59 and $1.65. The company has repurchased 4 million shares and maintains a total liquidity of $365 million, with no debt maturities until 2027. These recent developments highlight CoreCivic's financial resilience and growth potential as it prepares to capitalize on the evolving political and economic environment.
InvestingPro Insights
The recent insider sale by Devin Murphy comes at a time when CoreCivic Inc. (NYSE:CXW) is experiencing significant market momentum. According to InvestingPro data, the company's stock has shown remarkable strength, with a 56.85% price return over the past month and an impressive 66.95% return over the last three months. This upward trend is further reflected in the stock's current price, which stands at 85.75% of its 52-week high.
Despite the strong performance, InvestingPro Tips suggest that the stock may be in overbought territory, as indicated by the RSI (Relative Strength Index). This could explain why an insider like Murphy might choose to sell a portion of his holdings at this time. Additionally, the company is trading at a high P/E ratio of 31.32, which is relatively high compared to its near-term earnings growth potential.
It's worth noting that CoreCivic has a perfect Piotroski Score of 9, signaling strong financial health. The company's revenue for the last twelve months as of Q3 2024 was $1,973.6 million, with a revenue growth of 5.16% over the same period. These figures, combined with the fact that five analysts have revised their earnings upwards for the upcoming period, suggest a positive outlook for the company's financial performance.
For investors seeking more comprehensive analysis, InvestingPro offers 12 additional tips for CoreCivic, providing a deeper understanding of the company's financial position and market prospects.
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