The GEO Group (NYSE:GEO) Shares Gap Down on Disappointing Earnings

The GEO Group, Inc. (NYSE:GEO)’s share price gapped down before the market opened on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $14.43, but opened at $13.66. The GEO Group shares last traded at $13.35, with a volume of 874,695 shares changing hands.

The real estate investment trust reported $0.18 EPS for the quarter, missing the consensus estimate of $0.19 by ($0.01). The GEO Group had a net margin of 4.72% and a return on equity of 9.43%. The firm had revenue of $605.67 million during the quarter, compared to analysts’ expectations of $603.84 million. During the same quarter last year, the company posted $0.22 EPS.

Wall Street Analysts Forecast Growth

Separately, Wedbush dropped their target price on The GEO Group from $22.00 to $20.00 and set an “outperform” rating on the stock in a report on Wednesday.

Insider Activity

In related news, CFO Shayn P. March sold 2,500 shares of the stock in a transaction on Friday, April 5th. The stock was sold at an average price of $15.00, for a total transaction of $37,500.00. Following the completion of the sale, the chief financial officer now directly owns 67,830 shares in the company, valued at $1,017,450. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. 5.00% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. GAMMA Investing LLC acquired a new stake in shares of The GEO Group in the fourth quarter worth about $48,000. Benjamin F. Edwards & Company Inc. boosted its holdings in shares of The GEO Group by 399.6% during the 1st quarter. Benjamin F. Edwards & Company Inc. now owns 3,852 shares of the real estate investment trust’s stock worth $54,000 after buying an additional 3,081 shares during the period. Tidemark LLC acquired a new position in The GEO Group in the 4th quarter valued at $71,000. Byrne Asset Management LLC raised its holdings in The GEO Group by 47.8% in the 4th quarter. Byrne Asset Management LLC now owns 6,800 shares of the real estate investment trust’s stock worth $76,000 after acquiring an additional 2,200 shares during the period. Finally, Privium Fund Management UK Ltd acquired a new position in The GEO Group during the 3rd quarter worth $109,000. Institutional investors and hedge funds own 76.10% of the company’s stock.

The GEO Group Price Performance

The company has a debt-to-equity ratio of 1.34, a current ratio of 1.21 and a quick ratio of 1.21. The stock’s fifty day simple moving average is $14.03 and its 200-day simple moving average is $11.78. The company has a market capitalization of $1.73 billion, a P/E ratio of 17.93, a PEG ratio of 1.45 and a beta of 0.59.

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.