The GEO Group (NYSE:GEO) Shares Down 3.3% – Here’s Why

The GEO Group, Inc. (NYSE:GEO)’s share price fell 3.3% during trading on Tuesday . The company traded as low as $28.91 and last traded at $29.93. 423,157 shares traded hands during mid-day trading, a decline of 86% from the average session volume of 2,927,727 shares. The stock had previously closed at $30.97.

Analyst Upgrades and Downgrades

A number of research analysts have recently weighed in on GEO shares. Northland Securities lifted their price objective on The GEO Group from $16.00 to $37.00 and gave the company an “outperform” rating in a research report on Friday, November 8th. Wedbush reaffirmed an “outperform” rating on shares of The GEO Group in a research note on Tuesday, December 17th. Finally, Noble Financial lowered shares of The GEO Group from an “outperform” rating to a “market perform” rating in a research report on Monday, November 11th.

The GEO Group Price Performance

The stock’s 50-day moving average is $29.72 and its 200 day moving average is $20.68. The company has a debt-to-equity ratio of 1.25, a current ratio of 1.10 and a quick ratio of 1.10. The company has a market cap of $3.98 billion, a PE ratio of 98.42, a PEG ratio of 2.49 and a beta of 0.87.

The GEO Group (NYSE:GEO) last announced its earnings results on Thursday, November 7th. The real estate investment trust reported $0.21 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.24 by ($0.03). The GEO Group had a net margin of 2.00% and a return on equity of 9.20%. The business had revenue of $603.13 million for the quarter, compared to analyst estimates of $611.69 million. During the same period in the prior year, the company earned $0.19 earnings per share. On average, equities analysts anticipate that The GEO Group, Inc. will post 0.83 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in GEO. Point72 Asset Management L.P. boosted its position in The GEO Group by 363.5% during the third quarter. Point72 Asset Management L.P. now owns 702,107 shares of the real estate investment trust’s stock worth $9,022,000 after purchasing an additional 968,601 shares in the last quarter. Hodges Capital Management Inc. boosted its holdings in shares of The GEO Group by 1,501.6% during the 3rd quarter. Hodges Capital Management Inc. now owns 788,800 shares of the real estate investment trust’s stock worth $10,136,000 after purchasing an additional 739,550 shares during the last quarter. Nisa Investment Advisors LLC grew its position in shares of The GEO Group by 91.9% in the fourth quarter. Nisa Investment Advisors LLC now owns 859,528 shares of the real estate investment trust’s stock valued at $24,050,000 after purchasing an additional 411,565 shares in the last quarter. Philosophy Capital Management LLC increased its holdings in shares of The GEO Group by 17.1% in the third quarter. Philosophy Capital Management LLC now owns 1,644,005 shares of the real estate investment trust’s stock valued at $21,125,000 after purchasing an additional 240,251 shares during the last quarter. Finally, Pinnbrook Capital Management LP acquired a new stake in shares of The GEO Group in the fourth quarter valued at approximately $4,837,000. Hedge funds and other institutional investors own 76.10% of the company’s stock.

About The GEO Group

The GEO Group, Inc (NYSE: GEO) engages in ownership, leasing, and management of secure facilities, processing centers, and community-based reentry facilities in the United States, Australia, the United Kingdom, and South Africa. The company also provides secure facility management services, including the provision of security, administrative, rehabilitation, education, and food services; reentry services, such as temporary housing, programming, employment assistance, and other services; electronic monitoring and supervision services; and transportation services; as well as designs, constructs, and finances new facilities through projects.