In a recent transaction on October 1st, CoreCivic, Inc. (NYSE:CXW) EVP, General Counsel, and Secretary Cole G. Carter sold 8,000 shares of the company's stock. The stock was sold at an average price of $12.58 per share, totaling $100,640.
The sale was disclosed in a legal filing with the Securities and Exchange Commission. Following the transaction, Carter still owns 207,847 shares of the company's stock, valued at approximately $2,615,682.36. The transaction was conducted under a pre-arranged 10b5-1 trading plan, which allows company insiders to set up a plan in advance for buying or selling shares and is typically used to avoid accusations of insider trading.
CoreCivic, Inc., formerly known as Corrections Corporation of America, is a real estate investment trust that specializes in the ownership and management of private prisons and detention centers. The company's stock has seen various changes over the years and investors often watch insider transactions as indicators of corporate health and management sentiment.
Investors and the public can access the full details of the transaction through the SEC filing, which provides transparency into the actions of company executives and their financial dealings with the company's stock.
In other recent news, CoreCivic, Inc. reported a 6% growth in second-quarter revenue for 2024, reaching $490.1 million. This increase was largely driven by federal, state, and local government contracts, with federal revenue from ICE alone rising by 7%. Despite the upcoming termination of the South Texas Family Residential Center contract, the company remains optimistic about potential new contracts.
CoreCivic's financial performance exceeded expectations, with a GAAP net income of $0.17 per share and an adjusted EPS of $0.20 per share. The company also continued its share repurchase program, buying back 1.3 million shares for $20 million, and maintained a leverage ratio within its target range.
In addition to these developments, CoreCivic updated its 2024 financial guidance, projecting an adjusted EPS of $0.58 to $0.66. While the closure of the South Texas facility is expected to impact the operating margin, the company anticipates higher utilization in existing contracts. These recent developments highlight CoreCivic's resilience and strategic focus on growth opportunities amid operational changes.
InvestingPro Insights
To provide additional context to the recent insider transaction at CoreCivic, Inc. (NYSE:CXW), let's examine some key financial metrics and insights from InvestingPro.
As of the latest data, CoreCivic has a market capitalization of $1.38 billion, reflecting its significant presence in the private prison and detention center industry. The company's P/E ratio stands at 20.44, while its adjusted P/E ratio for the last twelve months as of Q2 2024 is lower at 14.32, suggesting that the stock might be more attractively valued when considering recent earnings adjustments.
One of the InvestingPro Tips highlights that management has been aggressively buying back shares. This aligns with the company's high shareholder yield, another InvestingPro Tip, which could indicate a commitment to returning value to shareholders. These actions may be seen as a positive signal by investors, potentially offsetting concerns raised by the recent insider sale.
CoreCivic's financial health appears stable, with InvestingPro Data showing that liquid assets exceed short-term obligations. This strong liquidity position is crucial in the capital-intensive business of managing correctional facilities and could provide reassurance to investors about the company's ability to meet its near-term financial commitments.
Revenue growth is also noteworthy, with the company reporting a 5.84% increase in the last twelve months as of Q2 2024, reaching $1.97 billion. This growth trajectory, combined with analysts' predictions that the company will be profitable this year (another InvestingPro Tip), may contribute to a positive outlook for CoreCivic's financial performance.
It's worth noting that while the stock has seen a 8.75% price total return over the past year, it has experienced a decline of 14.45% year-to-date as of the latest data. This recent underperformance might be a factor in investor sentiment and could provide context for the insider sale reported in the article.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights beyond what's mentioned here. In fact, there are 6 more InvestingPro Tips available for CoreCivic, which could provide valuable perspective on the company's prospects and financial health.
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