Mark A. Emkes, a director at CoreCivic, Inc. (NYSE:CXW), recently sold 16,000 shares of the company's common stock. The transaction, which took place on November 22, 2024, was executed at a price of $22.70 per share, amounting to a total sale value of $363,200. Following this sale, Emkes retains ownership of 149,264 shares in the company. CoreCivic, a real estate investment trust, is headquartered in Brentwood, Tennessee.
In other recent news, CoreCivic has experienced a series of significant developments. The company's third-quarter results for 2024 exceeded expectations due to increased occupancy and improved labor cost management. CoreCivic also revised its guidance upward, anticipating enhanced profitability by year-end.
Jones Trading upgraded CoreCivic's stock rating from Hold to Buy, reflecting anticipated growth opportunities, especially with the new administration's focus on unauthorized migration and criminal justice enforcement. CoreCivic's largest customers, including Immigration and Customs Enforcement (ICE) and the US Marshals Service, are expected to receive increased appropriations, aligning with the new administration's commitments.
CoreCivic has reported a 2% revenue increase in the third quarter of 2024, reaching $491.6 million, largely due to state revenue growth and improved occupancy rates. The company's normalized funds from operations (FFO) per share also saw a 23% rise to $0.43, despite increased general and administrative costs.
The company's third-quarter performance was bolstered by 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 anticipates an increase in demand, preparing to activate 18,000 vacant beds.
Finally, CoreCivic has 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. The company has also repurchased 4 million shares and maintains a total liquidity of $365 million, with no debt maturities until 2027.
InvestingPro Insights
The recent insider sale by Mark A. Emkes comes at a time when CoreCivic (NYSE:CXW) is experiencing significant market momentum. According to InvestingPro data, the company's stock has shown remarkable strength, with a 57.74% price return over the past month and an impressive 62.08% return over the last three months. This robust performance aligns with an InvestingPro Tip indicating that CXW has demonstrated a strong return over the last month and three months.
Despite the positive price action, investors should note that CoreCivic is currently trading at a P/E ratio of 32.22, which an InvestingPro Tip suggests is a high earnings multiple. This valuation metric may be a factor for investors to consider, especially in light of the insider selling activity.
From a financial perspective, CoreCivic reported revenue of $1.97 billion in the last twelve months as of Q3 2024, with a revenue growth of 5.16% over the same period. The company's profitability is also noteworthy, with an EBITDA of $331.98 million and an EBITDA growth of 11.82%.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for CoreCivic, providing a deeper understanding of the company's financial health and market position.
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