Corecivic (CXW) Downgraded by Zacks Investment Research to “Sell”

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Zacks Investment Research cut shares of Corecivic (NYSE:CXW) from a hold rating to a sell rating in a research note released on Friday.

According to Zacks, “CoreCivic, Inc. is a real estate investment trust which provides correctional, detention and residential reentry facilities. It designs, constructs, owns, manages and renovates jails, prisons, government agencies and inmate transportation companies. CoreCivic, Inc., formerly known as Corrections Corporation of America, is based in Nashville, Tennessee. “

Separately, ValuEngine raised Corecivic from a strong sell rating to a sell rating in a research report on Thursday, August 2nd. Two research analysts have rated the stock with a sell rating and two have issued a buy rating to the stock. Corecivic currently has a consensus rating of Hold and an average price target of $32.67.

Shares of CXW stock traded down $0.33 on Friday, reaching $21.85. 584,481 shares of the company’s stock were exchanged, compared to its average volume of 714,768. Corecivic has a 52 week low of $18.61 and a 52 week high of $26.09. The company has a debt-to-equity ratio of 1.23, a quick ratio of 1.19 and a current ratio of 1.14. The firm has a market capitalization of $2.61 billion, a P/E ratio of 9.42, a P/E/G ratio of 1.59 and a beta of 1.01.

Corecivic (NYSE:CXW) last issued its quarterly earnings results on Monday, November 5th. The real estate investment trust reported $0.34 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.38 by ($0.04). Corecivic had a return on equity of 11.64% and a net margin of 8.88%. The business had revenue of $462.73 million for the quarter, compared to the consensus estimate of $454.79 million. During the same period in the prior year, the business posted $0.35 earnings per share. Corecivic’s revenue was up 4.5% on a year-over-year basis. As a group, sell-side analysts forecast that Corecivic will post 2.31 EPS for the current year.

The company also recently announced a quarterly dividend, which was paid on Monday, October 15th. Shareholders of record on Monday, October 1st were given a dividend of $0.43 per share. This represents a $1.72 dividend on an annualized basis and a yield of 7.87%. The ex-dividend date was Friday, September 28th. Corecivic’s dividend payout ratio (DPR) is presently 74.14%.

In other Corecivic news, Director Charles L. Overby sold 43,712 shares of Corecivic stock in a transaction on Monday, August 13th. The stock was sold at an average price of $25.26, for a total transaction of $1,104,165.12. Following the completion of the sale, the director now directly owns 57,067 shares of the company’s stock, valued at approximately $1,441,512.42. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, EVP Kim White sold 10,000 shares of Corecivic stock in a transaction on Monday, August 13th. The shares were sold at an average price of $25.11, for a total value of $251,100.00. Following the sale, the executive vice president now directly owns 26,036 shares of the company’s stock, valued at $653,763.96. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 91,136 shares of company stock valued at $2,319,353. 1.30% of the stock is currently owned by corporate insiders.

A number of hedge funds and other institutional investors have recently modified their holdings of CXW. Virtu Financial LLC bought a new position in shares of Corecivic in the 2nd quarter worth $226,000. Raymond James Financial Services Advisors Inc. bought a new position in shares of Corecivic in the 2nd quarter worth $226,000. Argent Trust Co bought a new position in shares of Corecivic in the 2nd quarter worth $239,000. Pinebridge Investments L.P. raised its position in shares of Corecivic by 254.5% in the 2nd quarter. Pinebridge Investments L.P. now owns 10,032 shares of the real estate investment trust’s stock worth $240,000 after acquiring an additional 7,202 shares in the last quarter. Finally, Nissay Asset Management Corp Japan ADV bought a new position in shares of Corecivic in the 3rd quarter worth $258,000. 83.69% of the stock is owned by institutional investors and hedge funds.

About Corecivic

The Company is a diversified government solutions company with the scale and experience needed to solve tough government challenges in flexible cost-effective ways. We provide a broad range of solutions to government partners that serve the public good through corrections and detention management, a growing network of residential reentry centers to help address America's recidivism crisis, and government real estate solutions.

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